CCI Dismisses Complaint Against Nestlé India Over ‘Dirty Water’ Allegation in Maggi Sauce Production

The Competition Commission of India (CCI) has dismissed a complaint accusing Nestlé India of using dirty water to make Maggi Sauce at its factory in Bicholim, Goa. The Commission stated that the matter related to food safety and hygiene issues, not competition law, and therefore no investigation was required.

Complaint Details

The complaint was filed by Sarvesh M. Kolumbkar, who claimed that Nestlé India was using a dirty water extraction pump from an under construction site for manufacturing Maggi Sauce. He further alleged that the company was placing false labels on the sauce bottles, misleading consumers and depriving them of clean and hygienic food. Kolumbkar described it as a “Maggi Sauce scam” allegedly ongoing for 15 years and requested that certification bodies be barred from granting approvals.

CCI’s Observations

After reviewing the case, CCI noted that the allegations were related to violations of food safety standards under the Food Safety and Standards Act, 2006, rather than any anti-competitive practices under the Competition Act, 2002.

Section 4 of the Competition Act prohibits companies from abusing their dominant market position by imposing unfair conditions, restricting production, or denying market access. However, the Commission found that the alleged unhygienic production and mislabelling did not amount to anti-competitive behavior within the meaning of the Act.

Case Closed Under Section 26(2)

Since no competition-related issues were identified, CCI decided not to initiate an investigation and dismissed the case under Section 26(2) of the Competition Act, which allows the Commission to close cases at the preliminary stage if no prima facie evidence is found.

The request for interim relief under Section 33 was also turned down, as the Commission found no basis for temporary action against Nestlé. The interlocutory application filed by the complainant was similarly disposed of.