The Bombay high court’s order striking down the ban on Maggi noodles by the Food Safety and Standards Authority of India (FSSAI) has come as a relief not only for Maggi’s makers, Nestle, but for the Rs 3,500-crore noodle industry which has been in the doldrums since Nestle was not only the leader but Maggi accounted for the bulk of the Rs 3,500-crore business.
The other brands also saw their sales dip and some even recalled their products. The relief is conditional on the testing of Maggi by laboratories certified by the National Accreditation Board for Testing and Calibration. FSSAI ended up with egg on its face as the court hauled it up for lack of transparency and passing orders in an “arbitrary manner”. Nestle, on the other hand, had the advantage of being given a clean chit for its noodles by regulators in the UK, US and several other countries.
Besides, the regulator had not followed the principles of natural justice, the court observed. Nestle claimed it was not even informed before the ban was imposed and could not present its side. The government does not seem in a mood to challenge the order of the Bombay high court, but FSSAI is adamant about going ahead with its Rs 650-crore class action suit, which is significant as it is the first class action suit in the food segment in India. Whichever way this controversy ends, it has served a purpose, namely that whether its a multinational or a domestic company, or even the regulator, no one is above the law. This goes for all kinds of consumer goods, not just food items.
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