India hits Nestle with $99 m lawsuit

Reuters: The government has filed a lawsuit against Swiss food firm Nestle’s Indian unit, seeking 6.4 billion rupees ($99 million) in damages on behalf of consumers after the country’s worst packaged food scare in a decade.

Nestle, the first foreign firm in India to face a similar damages claim, is already weathering its worst public relations crisis in the country to date, after regional food safety regulators reported finding excess lead in its popular Maggi noodles, a result the company disputes.

The government’s lawsuit, citing unfair trade practices, the sale of defective goods and the sale of a product without approval, has been filed in the National Consumer Disputes Redressal Commission, a quasi-judicial body whose rulings are legally binding.

Maggi instant noodles are hugely popular in India as a cheap, quick snack, popular with school children and office workers and are available at countless roadside eateries. They were withdrawn by Nestle in June after the food scare broke.

A Nestle spokesman in India said the company had not yet received official notice of the government lawsuit. “We shall be able to provide substantive response after we receive the official papers,” he said.