New Delhi: Nestle, which is under the scanner due to alleged lapses in food safety standards in its Maggi noodles, spent Rs 445 crore on “advertising and sales promotion” last year, while the expenses towards “quality testing” were less than five per cent of that.
In the last five years, while the “advertising and sales promotion” expenses of Nestle ranged between Rs 300-450 crore annually, expenditure on laboratory or quality testing moved between Rs 12-20 crore.
Meanwhile, Goa on Sunday became the 11th state to impose a ban on Maggi even as the Centre indicated that more fast food products could be probed.
During 2010-14, the ‘laboratory or quality testing’ expenses rose from Rs 13 crore to Rs 19 crore. In more trouble for the company, the government has dragged Nestle to the National Consumer Disputes Redressal Commission (NCDRC) for “unfair trade practices and misleading advertisements” and may seek financial penalties, among other actions.
“On behalf of Indian consumers, the department of consumer affairs has now filed a petition in the NCDRC. It is based on the order of FSSAI saying that Nestle indulged in unfair trade practices and misleading advertisements,” a government official said.
Maggi imported from India has also come under scanner abroad with Canadian Food Inspection Authority investigating the product while Bahrain has temporarily banned the import and sale of the noodles from India.
Health Canada may issue a recall if the imported Maggi brand noodles are found to have discrepancies. In Bahrain, the ban on the noodles follows a health ministry-ordered seizure of hundreds of packets of the product.
