Nestle India shares dip 5% after govt files Rs 640 cr damages

  • PTI, Mumbai
  • Updated: Aug 12, 2015 14:36 IST

Shares of Nestle India fell by almost 5% on Wednesday, a day after the Centre 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% to Rs 6,008.20 at the BSE.

On the NSE, it went down by 4.91% 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.

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