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  1. Nestle shares dip 2% as govt files case against Maggi

Nestle shares dip 2% as govt files case against Maggi

Shares of Nestle India fell by almost 5 per cent on Wednesday after the government filed a class action suit against the company seeking about Rs 640 crore in damages for alleged unfair trade practices.

By: | Updated: August 12, 2015 4:38 PM
Shares of Nestle India fell by almost 5 per cent on Wednesday after the government filed a class action suit against the company seeking about Rs 640 crore in damages for alleged unfair trade practices. (Photo: PTI)

Shares of Nestle India fell by almost 5 per cent on Wednesday after the government filed a class action suit against the company seeking about Rs 640 crore in damages for alleged unfair trade practices. (Photo: PTI)

Shares of Nestle India fell 1.91 per cent on Wednesday 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 scrip closed at Rs 6,184.70.

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.

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