Defamation case against local resident dismissed, exposing Chaudhary Group’s faulty food safety practices

KATHMANDU: In a significant legal development, the Chitwan District Court has ruled against Chaudhary Group, dismissing a defamation case filed by the company against a local resident. The case, which sought a compensation of five million rupees, was based on a Facebook post made by 25-year-old Tejendra Poudel, who criticized ‘Wai Wai’ noodles for containing harmful chemicals. The court’s decision, announced recently, has sparked discussions on the accountability of food companies and the rights of consumers to express concerns.

The case stemmed from a Facebook status posted by Poudel in May 2024, in which he urged people to stop consuming ‘Wai Wai’ noodles after reports emerged about the discovery of a hazardous chemical batch in the product. The batch, labeled as 60 GMR-S 20 ARYL 23 CHI 2080, was found to contain an excessive amount of acid value that could potentially lead to cancer. This prompted an investigation by the Kathmandu Metropolitan City, which later imposed a fine of 200,000 rupees on the company for violating food safety standards and ordered the recall of the contaminated batch from the market.

Following the recall and fine, Poudel shared a Facebook post on Baishakh 21, 2081, in which he warned consumers with the message, “Wai-Wai! Don’t eat it now!” alongside a video. In response, CG Foods Nepal Limited, a subsidiary of Chaudhary Group, filed a defamation case, accusing Poudel of spreading false information that damaged the company’s reputation. The company sought five million rupees in compensation for the alleged harm caused by Poudel’s post.

However, the Chitwan District Court, presided over by Judge Kedar Nath Poudel, ruled in favor of the local resident and consumer right. The court found that the defamation claim was unfounded and that Poudel’s actions were motivated by genuine concern for public health, especially given the alarming findings regarding the product. Judge Poudel noted that the court had considered the evidence presented, including the official records of the Kathmandu Metropolitan City’s inspection and the fine imposed on the company.

The court’s decision was a relief for Poudel, who had been facing severe stress as a result of the legal action. Poudel, who runs a small mobile shop called Mega General Suppliers in Bharatpur, stated that the case and the threats from Chaudhary Group had caused him significant mental distress. He shared with local media that he had even fallen into depression and was forced to close his business temporarily.

 

“This case caused a great deal of stress, and I even fell into depression. I couldn’t run my shop because of it. However, the court has delivered justice by ruling that the defamation claim was baseless,” Poudel told Fiscal Nepal. He added, “As a result of this incident, I am now preparing to leave the country.”

 

The case has raised important questions about corporate responsibility and consumer rights. While Chaudhary Group’s ‘Wai Wai’ noodles remain a popular product in Nepal, this incident has highlighted the need for greater transparency and accountability in food safety practices. Local consumers and businesses alike have expressed concern over the growing trend of corporations using legal threats to suppress individuals’ right to free speech and consumer advocacy.

The court’s ruling marks a rare victory for ordinary citizens who challenge powerful corporations on issues of public health and consumer safety. It also serves as a reminder that companies must uphold their responsibilities not only to shareholders but to the broader public, ensuring that their products meet the highest standards of safety and quality.