Acting tough against Nestle India, the government filed a class action suit against the Swiss manufacturer of Maggi noodles, seeking about Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements.

The consumer affairs ministry has for the first time dragged a company to the National Consumer Disputes Redressal Commission using a provision in the nearly three-decade-old Consumer Protection Act. This comes weeks after Nestle had to withdraw its instant noodles brand Maggi from the market over allegations of high lead content and presence of MSG (monosodium glutamate).

"We had earlier recommended filing a complaint against Nestle India over the Maggi issue before the NCDRC. Finally, we have filed the complaint," Food and Consumer Affairs Minister Ram Vilas Paswan told PTI. He did not share the punitive damages sought by the government, but said the new consumer protection bill, which was introduced in Parliament on Monday, would further strengthen the redressal of the consumer grievances.

Nestle India spokesperson did not offer any comment saying the company has not received any intimation about the issue. However, sources said, "Under section 12(1D) of the Consumer Protection Act, we have filed a complaint before NCDRC against Nestle India over the Maggi issue. We have sought damage of about Rs 640 crore."

"For the first time, the government has filed a class action suit against Nestle India to send a strong message to companies that they cannot sell sub-standard products in the country and put consumers' health at risk," source added.