Govt damage claim from Nestle India can go beyond Rs 640 cr
9 years, 7 months ago

Govt damage claim from Nestle India can go beyond Rs 640 cr

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Nestle India is also liable to pay interest at a rate of 18 percent per annum until the date of actual payment. New Delhi: The damage claim from first of its kind class action suit against Nestle India is likely to go beyond Rs 640 crore as the government is “tabulating further damages” for selling “defective and hazardous” Maggi noodles. The ministry in a statement today said: “The Department has filed this class action suit on behalf of the large number of consumers of Maggi against Nestle India on grounds of unfair trade practices, sale of defective goods and sale of Maggi Oats Noodles to the public without product approval.” Meanwhile, in the petition, the department said, “The complaint is being filed to safeguard and protect the interest of millions of consumers who have been victims of defective, misbranded and hazardous goods/products…” The ministry has claimed damages to the tune of Rs 639.95 crore as the loss and injury has been suffered by a large number of consumers who are not identifiable conveniently. While the Consumer Protection Act provides for an individual to seek a minimum 5 percent of the total sales of the company as damages, but the department has doubled it for Nestle India, sources said. The department has claimed 10 percent of the total domestic sale of Maggi noodles in 2014, which comes to Rs 284.45 crore, for causing damages to consumers by selling “defective and hazardous goods” and unfair trade practice.

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