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Govt hits Nestle with Rs 640-cr damage suit over Maggi

Govt hits Nestle with Rs 640-cr damage suit over Maggi - More than a month after banning Maggi, the government on Tuesday slapped a Rs 640 crore damage suit on Nestle India.

In a first-of-its-kind "class action" complaint against Nestle India, the government lodged a complaint saying the company had deluded consumers with advertisements that claimed the noodles were healthy.

Nestle India said it has not received official notice about the complaint.

In another development, last week Consumer affairs minister Ram Vilas Paswan had said he was hopeful that Maggi would be back in the market soon, a day after the food regulator said it did not clear the Nestle product.

The government blamed the company of advertising the popular instant snack as "taste bhi, health bhi (it is tasty as well as healthy)" even though the product contained lead and MSG (monosodium glutamate). Nestle India infringed consumers' right to life by endangering their health, it said.

A Nestle India representative said, "We are yet to receive official notice about the complaint filed before the NCDRC. Our current knowledge on this issue is only based on media reports. We shall be able to provide a substantive response after we receive the official papers."

The money Rs 640 crore claimed by the government will be put in consumer welfare fund.