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Maggi row: Govt to go ahead with Rs 640 cr suit despite Bombay HC verdict

Maggi row: Govt to go ahead with Rs 640 cr suit despite Bombay HC verdict - Union Minister Ram Vilas Paswan has said that the verdict by the Bombay HC does not alter the grounds on which it has claimed Rs 640 crore in damages from Nestle for false advertisement and unfair trade practices.

Last week, the High Court lifted the ban announced by food regulators on nine variants of the popular instant noodles across the country and asked the company to conduct fresh tests of the product.

Representing the customers, the Food and Consumer Affairs Ministry separately submitted a Class Action Suit against Nestle India before the National Consumer Disputes Redressal Commission (NCDRC) last week, using an unused provision in the three-decade-old Consumer Protection Act.

The Ministry has demanded Rs 284.45 crore in basic damages and further Rs 355.50 crore in punitive damages, leading to total damages of Rs 639.95 crore from the Swiss giant.

The government has also asked Nestle India to pay interest at a rate of 18 per cent per annum till the date of actual payment and it has also asked the consumer forum to order the company to take counteractive measures for wrong labeling and misleading advertisements.

The amount will be deposited in the Consumer Welfare Fund of the government.