The National Consumer Dispute Redressal Commission (NCDRC) dismissed government's 2015 plea against sale of Maggi noodles in favour of Nestle India Ltd, said the FMCG major in a stock exchange filing on April 4.
Government was seeking compensation of Rs 284.55 crore and punitive damages of Rs 355.41 crore.
"Complaint filed by the Union of India, Department of Consumer Affairs in 2015 before the NCDRC on the allegation that by selling Maggi noodles in the past, the company had indulged in unfair trade practice by manufacturing and selling of hazardous and defective goods to the public and thereby seeking compensation of Rs 284.55 crore and punitive damages of Rs 355.41 crore, was dismissed by NCDRC in favour of the company vide NCDRC’s Order dated April 2 2024. Copy of the said order was received by the Company on April 3," said Nestle.
On April 4, Nestle India's shares on BSE closed trading nearly flat at Rs 2,551 apiece.
Maggi was banned in June 2015 for six months across the country following allegations it contained chemicals beyond prescribed limits. The company had to recall and destroy 38,000 tonnes of Maggi noodles from millions of retail shelves. The ban was relaxed in November 2015.
Nestle India reported an increase of 4.38 percent in its net profit at Rs 655.61 crore for the quarter ended December 31.
Its total expenses in the December quarter rose 6.11 percent to Rs 3,636.94 crore.
Nestle India's domestic sales were up 8.86 percent to Rs 4,421.79 crore, as against Rs 4,061.85 crore in the October-December quarter of last fiscal.
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