The Supreme Court on Thursday raised a stay on the proceedings of a case filed by the Center in the National Consumer Disputes Redressal Commission against the maker of Maggi, Nestle India, seeking damages of Rs 640 crores on charges of unfair trade practices, false labelling and misleading advertisements.
Now the National Consumer Disputes Redressal Commission (NCDRC) can continue proceedings against Nestle India, based on the results of tests of Maggi noodle samples conducted by the Central Food Technological Research Institute (CFTRI) in Mysuru.
In December 2015, the top court had stayed NCDRC proceedings against Nestle India and directed the testing of the noodles by CFTRI. In April 2016 Nestle cleared all tests and Maggi was declared safe for consumption.
The government had approached Nestle a compensation of Rs,640 crores under the provisions of the Consumer Protection Act, 1986.
The APEX court said made a rule on Thursday that Nestle may have to review its packaging and have to change the way it advertises the noodles brand.
Nestle India official wrote in a statement, it has accepted the order which supreme court had passed regarding the Maggi matter.
Senior advocate Abhishek Manu Singhvi, appearing for Nestle, told the court that the Mysuru based lab had found the noodles to contain lead “within permissible limits” and that it could not be ascertained whether the monosodium glutamate in it was natural or added.
The 2015 Maggi ban was very shocking for the Nestle company, which took a hit of more than Rs.500 business, more than 35,000 tonnes of noodles from 3.5 million retail outlets in June 2015.
FSSAI banned Maggi on 5th June 2015 for five months for allegedly containing lead beyond perishable limits. Apart from this FSSAI also forced Nestle to withdraw Maggi from the market. This just not led to the loss, but also the erosion of consumer trust in the popular brand.
The senior vice-president of Edelweiss Securities Abneesh Roy said that “Nestle had seen favorable outcomes from international and national labs for its Maggi samples before it hit the market. I do not see any major issue hitting the company in this regard.”