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Food and Beverages 2019-01-03

Maggi in Soup Again: Supreme Court Revives Action Suit Against Nestle

The government had filed the suit in the NCDRC after the Food Safety and Standards Authority of India (FSSAI) raised the safety concerns over Maggi noodles.

By Deputy Features Editor
Maggi in Soup Again: Supreme Court Revives Action Suit Against Nestle

Nestle India shares fell from the day’s high after Supreme Court revived the class action suit filed by the Central Government against Maggi noodles, while setting aside NCDRC order.

After rising over 4 per cent to Rs 11,499 in the morning session, the stock pared gains and was trading at Rs 11,253, up by 1.92 per cent at 1:25 pm, said a media report.

The company had moved the apex court against the tests ordered by the National Consumer Disputes Redressal Commission (NCDRC).

The government had filed the suit in the NCDRC after the Food Safety and Standards Authority of India (FSSAI) raised the safety concerns over Maggi noodles. The consumer court had ordered fresh tests on Maggi samples.

The Supreme Court said that the NCDRC will continue the probe based on 2016 CFTRI report from the Mysore lab.

In 2016, the NCDRC had stayed the centre's class action suit against Maggi noodles.

Also, on Thursday the Supreme Court was given this admittance by the lawyers of the company that the popular maggi noodles has presence of lead as the case was being heard.

Last year, tonnes of the product were destroyed because it failed the health safety norms. Moreover, the government has moved a class action against Nestle seeking damages of Rs 640 crore.

The SC judge asked the Nestle counsel why should he eat noodles with any lead content when it was argued that the content of highly toxic lead was within 'permissible' limits.

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