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Now, Harvard Business School is working on case study of Maggi recall in India

Even as people back in India are left craving for their favourite instant noodles Maggi, reports said that the India Research Center of Harvard Business School (HBS) will conduct a case study on the noodles.

According to The Economic Times, the case study, that will discuss what led to the recall of the noodles, may be completed within a month, which is quite quick compared to the nine months that HBS takes to complete such studies.

Representational image. AFP

Representational image. AFP

Maggi, something that Indians had come to love since it was launched in the early 90s, was taken off the shelves after it was found to have high lead content.

The Economic Times report said that for the study, HBS has approached several stakeholders. The report quoted an official as saying, "We have been approached for comment on the Nestle Maggi mess." The official spoke on the condition of anonymity.

And while Maggi has been off the shelves for over two months now, a Bombay High Court order had quashed the ban on Maggi noodles and ordered fresh tests.

However, the government had said the verdict did not alter the grounds on which it had claimed Rs 640 crore in damages from Nestle for misleading advertisement and unfair trade practices.

The Food Safety and Standards Authority of India (FSSAI) too was still convinced about why the ban was imposed on the instant noodles brand. The regulator maintained that the ban was imposed after thorough tests on the products, according to a report by the Indian Express, and had questioned Nestle's extensive disposal of existing Maggi stock.

On behalf of the consumers, the Food and Consumer Affairs Ministry separately filed a Class Action Suit against Nestle India before the National Consumer Disputes Redressal Commission (NCDRC), using a hitherto unused provision in the three-decade-old Consumer Protection Act. In the case the Centre had claimed damages worth Rs 640 crore.

The Ministry had sought Rs 284.45 crore in basic damages and further Rs 355.50 crore in punitive damages, resulting in total damages of Rs 639.95 crore from the Swiss giant.

Nestle, which had to recall the popular noodles brand after orders from the central food safety regulator FSSAI and food regulators in various states, is the first foreign firm in India to face a class action suit.

With agency inputs

Updated Date: Aug 25, 2015 17:09 PM

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