CCI Dismisses Complaint Against Nestle Over “Dirty Water” Allegations in Maggi Sauce

The Competition Commission of India (CCI) has dismissed a complaint that accused Nestle India’s factory in Bicholim, Goa, of using dirty water in the production of Maggi Sauce.

The complaint was filed by Sarvesh M Kolumbkar, who claimed that Nestle’s facility used a “dirty water extraction pump from an under-construction site.” He also alleged that the company used false labels on its bottles, misleading consumers and compromising food safety standards.

Kolumbkar argued that these actions violated the Food Safety and Standards Act, 2006 and also amounted to abuse of dominance under Section 4 of the Competition Act, 2002. He demanded an investigation and interim relief under Section 33, calling it a “Maggi Sauce scam” that had allegedly continued for 15 years.

However, the CCI held that the complaint mainly dealt with food safety issues and not competition-related concerns. It clarified that the allegations did not indicate any anti-competitive behaviour such as restricting production or denying market access.

“The matter does not raise any issue under the Competition Act and is therefore closed under Section 26(2),” the Commission stated.

As a result, the CCI refused to order any investigation or grant interim relief, observing that no case was made out for such action. The interlocutory application filed by the complainant was also dismissed.

With this, the CCI concluded that while the claims might be relevant under food safety laws, they did not fall within its jurisdiction under competition law.