The Supreme Court on Thursday revived the government's case in National Consumer Disputes Redressal Commission (NCDRC) against Nestle India seeking damages of Rs 640 crore on charges of unfair trade practices, false labelling and misleading advertisements.
A bench headed by Justice D Y Chandrachud said the report from CFTRI (Central Food Technological Research Institute, Mysuru), where the testing of the Maggi noodle samples was conducted, will form the basis for the proceedings.
The top court had earlier stayed the proceedings before the NCDRC after Nestle had challenged it.
The Consumer Affairs Ministry had in 2015 filed a complaint against Nestle India before the NCDRC using a provision for the first time in the nearly three-decade-old Consumer Protection Act.
It had filed a complaint against Nestle for causing harm to Indian consumers by allegedly indulging in unfair trade practices and false labelling related to the Maggi noodles product.
It was for the first time that the government had taken action under Section 12-1-D of the Consumer Protection Act, under which both the Centre and states have powers to file complaints.
In the petition filed before the NCDRC, the ministry had charged that Nestle India has mislead consumers claiming that its Maggi noodle was healthy -- "Taste bhi healthy bhi".
Maggi was banned by FSSAI in June 2015 for allegedly containing lead beyond permissible limits, forcing Nestle India to withdraw the product from the market. Even in 2015, the Maggi trouble for Nestle had begun in UP.
Following legal battles, the popular noodles brand was back in the market in November 2015.
FSSAI had also said Nestle violated labelling regulations on taste enhancer 'MSG' and ordered the company to submit a compliance report on its orders.
(PTI)
