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New Delhi: Acting tough against Nestle India, the government on Tuesday 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 (NCDRC) 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).

masala oats", sources added.

Usually, NCDRC comes into the picture following complaints filed by a consumer, but a section of this Act of 1986 also provides for the government to register a complaint.

In June, food safety regulator FSSAI had banned Maggi noodles after it found excess level of lead in samples, terming it as "unsafe and hazardous" for human consumption. FSSAI had also said Nestle violated labelling regulations on taste enhancer 'MSG' and ordered the company to submit a compliance report on its orders.