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Boot out the MNCs – How dare they do business in India!!
B.Vaidyanathan
The Ministry of Consumer
Affairs, Government of India, for the first time in the history of this country,
has filed a case in the National Consumer Disputes Redressal Commission,
New Delhi, in short the National Commission, against Nestle, for adopting
Unfair Trade Practices and issuing misleading advertisements, while promoting
their popular instant noodles Maggi. Further, the Complainant (Government
of India) has also sought a compensation of Rs. 640 crores (Rs. 6.4 billion)
from the MNC (Nestle) for the injury inflicted on the consumers.
Times are changing and an economically vibrant India
while interested in attracting Foreign Direct Investment for setting up more
industries and to enhance employment generation, would like to caution them
that unscrupulous business practices would not be tolerated. May be, what
other best way to demonstrate this than to make an established MNC (Nestle)
pay the price for its indiscretions, through adverse publicity and a sizeable
monetary fine. Well done Department of Consumer Affairs!!
The same Consumer Affairs Department, which controls
the Legal Metrology Wing, responsible for the administration of Standards
of Weights and Measures – Packaged Commodities Rules, put forward all frivolous
arguments to wriggle out of the ‘Indane’ LPG under-weighment case (Consumer
Protection Council, Rourkela Vs Indian Oil Corporation Ltd. And Others, Original
Petition No. 224/2001). But, in spite of that the Council went ahead and
got relief to crores of consumers, across the country, by ensuring that all
the 184 LPG bottling Plants were modernised.
Though the Oil major (IOCL), one of the Fortune 500
Companies of the world, sold to the gullible consumers under-weighed LPG
refills, estimated at over Rs. 65,000 crores (Rs. 650 billion) over several
years, the National Commission, did not levy the minimum penalty of Rs. 3,250
crores (Rs. 32.5 billion), as provided in the Consumer Protection Act, being
5% of the value of the defective products sold in the market and preferred
to leave it to the higher judiciary. Thanks to the National Commission, the
matter was at least decided in favour of the litigant Council.
The higher judiciary, ie.,
the Supreme Court, to which the Council appealed (Civil Appeal No. 10126
of 2010), beat around the bush for 2 years, could finally neither touch the
issue of compensation nor adjudicate upon it. This raises the fundamental
question whether the Consumer Protection Act is applicable only to Private
players and the MNCs?
Immediately after the Curative Option of the Council
was exhausted in July 2014, this author met the Additional Secretary, Consumer
Affairs, on 30th July and explained him the whole case and the need for filing
the second Curative Petition before the Supreme Court. But till date, a ready
to eat food is on the platter, but no takers from the Government.
Obviously, the government
is neither keen to protect the consumers nor promote the consumer movement,
but take some action against a popular MNC (Nestle) and score a few brownie
points. At least, I cannot infer anything better.
(The author
is the Chief Mentor, Consumer Protection Council, Rourkela)
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