Nestle shares dip 5 per cent as Government files case against Maggi

The Consumer Affairs Ministry has dragged the company to the NCDRC

Mumbai

: Shares of Nestle India fell byalmost 5 per cent today after the government filed a class action suit against the company seeking about Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements. The stock dipped 4.7 per cent to Rs 6,008.20 at the BSE. On the NSE, it went down by 4.91 per cent to Rs 6,007.05. The Consumer Affairs Ministry has dragged the company to the National Consumer Disputes Redressal Commission (NCDRC) using a provision for the first time in the nearly three-decade-old Consumer Protection Act.

Earlier, Nestle had to withdraw its instant noodles brand Maggi from the market over allegations of high lead content and presence of MSG (monosodium glutamate). The company on its part said in a regulatory filing it was yet to receive an official notice about the complaint filed before the NCDRC.