potato chipstends to include typesetters, printers, distributors, co-publishers, and newspaper...

Vol. XVIII, Issue 3 march 2017 rs 50

www.consumer-voice.org

Decoding Food LabelsButter Cookies: Cutting through

the Clutter

Revert to Consumer Forums’ NoticeYou Have Only 45 Days

Pension Plans 8 Companies Compared

a ready-to-munch option, but know your brands well

12 Brands Tested

TOP PErFOrmErS

Potato Chips

CONSUMER VOICE MaRCh 2017 • 3

COMPARATIVE TESTPotato ChipsA ready-to-munch option, but know your brands well

10

Contents

20

25

31

4144

46

36DECODING FOOD LABELSButter Cookies Cutting through the clutter

FOOD & STUFFFoodborne IllnessesContamination versus spoilage

COMPARATIVE STUDY: BFSIPension Plansthe answer to ‘what after retirement’

BFSI GUIDEIncreasing Interest Rates on Your Savings Account

LEGAL MATTERS45 Days to Revert to Consumer Forums’ Notice

Delays in Consumer Forumsthe reasons are many

BE INFORMEDService Charge Is an Unfair Trade Practice

4 •

Editor's Voice

Chief EditorProf PK Ghosh

Mg EditorProf sri Ram Khanna

COOAshim sanyal

Director OutreachAnand Pandeya

Editor Padma Pegu

Sales & Distributionniraj Kumar singh

Associate EditorArup Bhowmik

Hindi EditorialRashmi Khati

Online Teamsapna saini Amit Pathak

Food DeskAshok Kanchan

AccountsMonender singh

IT DeskHemant Upadhyay

TechnicalBhaskar Kr MukhopadhyayMAU Khan H Wadhwa KC Choudharysheeba Parveen

LegalAnkur sahaPooja Wason

Projects and CSRRinki sharmaAmarjeet singhekta Purohit

BFSIGopal Ravi Kumarsubas tiwari

MarketingPranay shethsnehanshu singhAshutosh Massey

SubscriptionFaraz AhmedPankaj negi

AdminRamanjeet KaurGovind singh

Real Estatesajjan Jindal

Editor’s note: Consumer Voice does not accept any corporate advertisements or advertorials for the magazine. This has been the magazine’s policy since the first issue was published in 1997 and it keeps our reportage unbiased and non-partisan. Consumer Voice regularly publishes laboratory results of product tests. These products are purchased from the retail market before being sent to an independent NABL-accredited laboratory for testing.

We are thankful to Dept. of Consumer Affairs for supporting the initiative of consumer education and empowerment..

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PadmaEditor

None for the road

India’s road network is growing at the rate of 30 kilometres daily – a sign of infrastructural progress. On an average, 53,700 new vehicles are added on Indian roads every day – a sign of economic prosperity. The country also witnesses 400 road deaths per day – a sign of...?

The numbers suggest that India has no right whatsoever to claim itself to be a contributor to Sustainable Development Goals. The foremost requisite for achieving these goals is a conscious citizenry and you will agree that it does not exist in India, at least not in the numbers that matter. Had there been conscious citizens, at least some impact of the millions that are being spent on road safety initiatives by the government, the NGOs and the corporate world would have been visible.

Not infrequently do I find myself to be the only driver waiting at a red light, especially when the traffic is thin, while other cars pass by with an attitude that beats me—confidence, nonchalance, or belief in their good luck, take your pick. Equally astonishing is the phenomenon of traffic lights not operating in the night when half the drivers are either drunk or falling asleep at the wheel. I get scared seeing trucks plying nonchalantly at prohibited hours, sometimes even in the wrong lanes. Over the years, I have also learnt to become indifferent towards this common sight of a family of five on a motorcycle – father driving, infant in the arms of the mother, and two adolescent kids squeezed in the middle (forgive the measly bag dangling around their feet). I have also become used to seeing cars making sudden speeding shifts from one lane to another, aimless honking drivers, and bullies in SUVs with metal bull bars. And yes, I have been witness to a traffic offender getting caught and getting away by greasing the cop’s hands.

I do not think it will be politically incorrect to say that India is the most harrowing place in the world to be a driver, a passenger, or even a pedestrian. Who is responsible and who can fix this mess?

It seems that the public believes it to be the responsibility of the government and the police, and puts it all on wrong planning, faulty execution, etc., while the authorities put the blame on uncooperative and law-breaking citizens. At some level I think we all know the reality, and like most other things, it’s somewhere in-between. As much as we would like to put the onus on an omnipotent and omniscient authority, we must also start directing a part of the responsibility and accountability towards ourselves. It is not as if we do not know the repercussions of carelessness, or that such carelessness is equal to abdicating our individual responsibilities; it is just that by not thinking about it or by taking the law lightly, we show that we do not care—for others and, yes, for ourselves too.

Today, millions of rupees from the public treasury as well as corporations’ social responsibility funds – which could have gone towards addressing larger issues – are being spent on awareness campaigns. Awareness about what, though? About things that we know, if only we would start to think?

So, what can we do? Well, I think one way forward is to start making the subject part of our regular discourse – in fact, talk about it with the little children around you. They will tell you what to do, or at least they will remember what not to do (my little girl raises the red flag whenever the speedometer hits 60). Do your bit towards their sustainable and safer future – it’s your one chance to redeem the any number of mistakes you may have committed, however unwittingly.


In the News

Insurance firm asked to compensate for denying accident claim

A consumer court in Chennai has directed an insurance company to pay compensation to its customer who was denied the claim amount for his damaged car on the ground that the damages were not relevant to the cause and nature of the accident.

The petitioner, M Chandrasekar of Kolathur, was driving with his wife and two toddlers to Trichy from Chennai in February 2010. They stopped at a roadside shop and were having tea when a vehicle rammed into the car, damaging the front portion, windshield and doors as well. The nearest police station was nine km away and not being comfortable in an unfamiliar place, he decided to return to Chennai. On the way back, the damaged bumper and bonnet kept rubbing against the front tyres, forcing him to take the service of a local mechanic.

Soon after reaching Chennai, he completed all the claim formalities with United India Insurance Co. The company’s surveyor inspected the vehicle but declared that the damages had accumulated over accidents that had occurred over a long time.

The District Consumer Disputes Forum, presided by K Jayabalan, found most of the damage was in the front of the vehicle such as the bonnet, front right side, bumper, grill and windshield, which proved that the vehicle was damaged during the accident and not accumulated over a longer period. Accordingly, the forum directed the company to pay a sum of Rs 23,150 towards the claim amount and additionally pay Rs 10,000 as compensation, plus Rs 5,000 towards litigation expenses.

Railways ordered to pay Rs 10,000 to passenger

A district consumer forum in Hyderabad has directed the South Central Railway (SCR) to pay Rs 10,000 as compensation to a couple for causing discomfort and inconvenience during their train journey. KK Durga Prasad and his wife Harika were travelling from Secunderabad to Bellampallay on an AC coach of the Bellampally Intercity Express on 8 August 2012. During the journey, the wooden pads of a seat fell on their knees, causing severe pain. They made an oral complaint to the ticket collector (TC) and requested him to repair the seats. But the TC expressed his inability to get it repaired and asked them to give a written complaint. The couple took the matter to the consumer court.

During trial, the bench observed that the opposite party had provided the coach on purpose and left the customers in discomfort.

6 •

In the News

Court orders replacement for faulty TV, slaps fine

A district consumer forum in Hyderabad has directed a private electronic manufacture firm and its authorised dealers to replace a TV free of cost and also pay Rs 20,000 as relief to a customer for inordinate delay in replacing the faulty piece.

K Narsimha Goud bought a colour television (Sony Bravia) from Bajaj Electronics after paying Rs 53,900. He claimed that the television worked properly only for one week and thereafter there was some problem with the picture clarity. After complaining about the same several times, Goud said that the electronic company repaired the TV, but he was not satisfied as the problem continued. In spite of a valid warranty, he was also charged for the repairs done.

Goud filed a complaint against Sony Electronics, Bajaj Electronics and Sony India Pvt. Ltd, seeking replacement of TV and compensation. “To satisfy the client, we replaced the panel of the TV. To resolve the issue amicably, we offered to replace the TV with the same model or an upgraded version wherein the complainant was required to pay the difference in cost. Despite the offer, the complainant refused,” opposite parties said.

During trial, the bench noticed opposite parties' offer was made two and half months after the complaint.

Consumer court rules no claim for obesity surgery

The district consumer court in Pune has ruled that an insurance company cannot be held liable for deficient service when its policy agreement clearly excludes certain physical conditions from the reimbursement of medical expenses. A bench of VP Utpat and Kshitija Kulkarni rejected the complaint by a homemaker (name withheld) from Lullanagar who alleged that mediclaim service provider New India Insurance Company wrongfully rejected her claims against the expenses incurred on surgery for morbid obesity.

The company had resisted the complaint arguing that repudiation of her claim was based on a specific clause in the policy agreement that excluded morbid obesity from the reimbursement list. The complainant had subscribed to the company's mediclaim insurance policy for the period between 1 March 2012 and 28 February 2013, by paying a one-time premium of Rs 17,880 for Rs 5 lakh insurance cover.

In October 2012, she was admitted to a private hospital for surgeries of hernia as well as obesity. She incurred total expenses of Rs 5.80 lakh for the two surgeries conducted simultaneously. Later, when she submitted her claim, the company sanctioned surgery expenses of Rs 2.07 lakh for hernia, rejecting the claim amount for obesity.

The complainant had argued before the consumer court that her case was not that of a cosmetic surgery and that she was required to undergo surgery for hernia due to obesity, and that both health issues were connected. Obesity itself is a disease and the insurance company ought to have reimbursed the claim, she added.

The bench referred to the specific clause and observed: “It is crystal clear from the said clause that the expenses incurred for the surgery of obesity are excluded. The complainant was aware about the contents of the policy and she had entered into contract of insurance knowing she is not entitled for the same.” As such, the insurance company could not be held liable for deficient service, it ruled.


In the News

Health & Nutrition Updates

Whole grains increase metabolism, may help in weight loss

Whole grains have been shown to be superior in the diet when compared with refined grains, suggests new research published in the American Journal of Clinical Nutrition. Whole grains increased calorie loss by decreasing the number of calories retained during digestion, while simultaneously speeding up metabolism.

In the new research, investigators conducted a study over 8 weeks that included 81 men and women aged between 40 and 65. All food was provided to the participants over the course of the study and included either whole grains or refined grains. Participants were asked only to consume the food provided, return any uneaten food, and continue with their usual levels of physical activity.

“We provided all food to ensure that the composition of the diets differed only in grain source,” says senior author Susan B Roberts, Ph.D., senior scientist and director of the Energy Metabolism Laboratory at the USDA Human Nutrition Research Center on Aging (HNRCA) at Tufts University in Boston.

For the first two weeks, all participants ate the same type of food, and the calorie needs of each individual were determined. The participants were then randomly assigned to either a group that included whole grains or a group with refined grains. They provided stool samples, gave blood samples, and had their metabolic rate tested. The researchers compared the effects of whole grains and refined grains on resting metabolic rate and faecal energy losses, in addition to how full or how hungry the participants felt. Measures of the study included weight, metabolic rate, blood glucose, faecal calories, hunger, and fullness.

Results showed that the group that ate whole grains had increased resting metabolic rate and greater faecal losses compared with the refined grain group. Participants who consumed whole grains – an amount that matched the recommended daily allowance for fibre – lost almost an extra 100 calories per day than the participants who consumed refined grains without much fibre.

Many previous studies have suggested health benefits of whole grains and high dietary fibre intake, including for glycaemic control and insulin sensitivity. There has been controversy, however, about whether whole grains and fibre are beneficial for weight regulation, partially because there hasn’t been data from controlled metabolic studies.

The latest study was carried out by researchers from Tufts University, the University of Minnesota, and the Bell Institute of Health and Nutrition, in the US.

Soak rice overnight to reduce risk of heart disease, cancer

A new study suggests that before eating rice it should be soaked overnight to reduce the chances of increase in heart disease, diabetes and cancer. According to researchers from the Queens University Belfast in England, the common method of cooking rice – simply boiling it in a pan until the water has steamed out – can expose those who eat it to traces of the poison arsenic, which contaminates rice while it is growing as a result of industrial toxins and pesticides. This chemical has been linked to a range of health problems including heart disease, diabetes and cancer, as well as development problems..

While it is generally believed that traces of arsenic are expelled when the rice is cooked, it has now been claimed this only takes place when the rice is soaked overnight. For the research, Andy Meharg from the university tested three different ways of cooking rice. In the first, he used a ratio of two parts of water to one part of rice, where the water was ‘steamed out’ during cooking. In the second, with five parts of water to one part of rice, with the excess water washed off, levels of arsenic were almost halved. And in the third method, where the rice was soaked overnight, levels of the toxin were reduced by 80 per cent.

8 •

In the News

Food additive found in candy, gum could alter digestive cell structure and function

US-based researchers claim that a common food additive, titanium oxide, found in candy, chewing gum, bread and even toothpaste, slows down metabolism and significantly decreases absorption of nutrients like iron, zinc and fatty acids in the gut. Though non-fatal, scientists advise avoiding food rich in the additive, like processed foods and especially candy.

The ability of small intestine cells to absorb nutrients and act as a barrier to pathogens is ‘significantly decreased’ after chronic exposure to nanoparticles of titanium dioxide, according to research from Binghamton University, State University of New York. Researchers exposed a small intestinal cell culture model to the physiological equivalent of a meal’s worth of titanium oxide nanoparticles—30 nanometres across—over four hours (acute exposure), or three meal’s worth over five days (chronic exposure).

Acute exposures did not have much effect, but chronic exposure diminished the absorptive projections on the surface of intestinal cells called microvilli. With fewer microvilli, the intestinal barrier was weakened, metabolism slowed, and some nutrients—iron, zinc and fatty acids specifically—were more difficult to absorb. Enzyme functions were negatively affected, while inflammation signals increased.

The paper, ‘Titanium dioxide nanoparticle ingestion alters nutrient absorption in an in vitro model of the small intestine,’ was published in NanoImpact.

Eating prebiotics may improve sleep, buffer impacts of stress

Intake of prebiotics – dietary fibres found naturally in foods like chicory, artichokes, raw garlic, leeks and onions – may help improve sleep and act as a buffer against the physiological impacts of stress, a study shows.

Prebiotics are certain types of non-digestible fibres that probiotic bacteria feed on, such as the fibres found in many plant sources like asparagus, oatmeal and legumes as well as in breast milk. When the beneficial bacteria end up digesting probiotic fibre, they do not just multiply and improve one’s health in the gut, they also release metabolic byproducts.

The findings showed that rats on the prebiotic diet spent more time in non-rapid-eye-movement (NREM) sleep, which is restful and restorative and is dreamless, than those on the non-prebiotic diet. “Given that sufficient NREM sleep and proper nutrition can impact brain development and function and that sleep problems are common in early life, it is possible that a diet rich in prebiotics started in early life could help improve sleep, support the gut microbiota and promote optimal brain/psychological health,” said Monika Fleshner, professor at University of Colorado – Boulder.

For the study, published in the journal Frontiers in Behavioral Neuroscience, the team fed three-week-old male rats a diet of either standard chow or chow that included prebiotics. They then monitored the rats’ body temperature, gut bacteria and sleep-wake cycles — using EEG, or brain activity testing — over time.


In the News

Voice Outreach

Safer Internet Day: Unite for a better internet

Every year, Safer Internet Day is observed in different parts of the world with the objective of making people aware about safe browsing habits. This year, Safer Internet Day 2017 was celebrated globally on 7 February with the theme ‘Be the Change: Unite for a Better Internet’.

To mark the occasion, Google India organised a workshop in New Delhi on 7 February. The efforts and contributions by Consumer VOICE were duly recognised. Consumer VOICE has organised Internet Safety Campaign across India covering 24 states to educate and empower consumers on using the internet with trust and confidence.

Ashim Sanyal, COO, Consumer VOICE, was in the panel discussion. Other distinguished guests were PV Rama Sastry, joint secretary, Department of Consumer Affairs; Jose Remedios Rebello, chairman, Goa Board of Secondary & Higher Education; Vinayak Godse, senior director, Data Security Council; and Sanjay Bahl, director general, Ministry of Electronics & IT.

Consumers were urged to use digital technologies in a positive way while also spreading awareness about internet safety.

Tobacco control: Higher taxation needed

As part of ongoing efforts on tobacco control, Consumer VOICE with its state partners across India expressed disappointment regarding the treatment of tobacco under the Union Budget presented on 1 February 2017. The excise increase proposed on tobacco products in the 2017–18 Budget fell far short of even previous budgets, since the proposed increase in additional duties of excise and basic excise duties (BED) on various tobacco products amounted to an increase of only six per cent.

Taxation is adopted as the best tool to curb tobacco consumption all over the world. Consumer VOICE strongly recommends that tobacco products including bidis be taxed at uniformly high rates under the new indirect tax framework expected to kick in from the first of July.

Bidis are the most commonly used tobacco product in India, accounting for 64 per cent of all tobacco consumption, and they are disproportionately consumed by the poor. Bidis contribute to the majority of the 10 lakh deaths attributable to tobacco as well as the staggering economic burden caused by tobacco use. The main objective is to discourage consumption of tobacco products and thereby save millions of lives.

PV Rama Sastry, Joint Secretary, Department of Consumer Affairs

10 •

true, potato chips are not an ideal snack and in fact fall in the ‘junk food’ category. But when it comes to crispy, crunchy deliciousness, many will vouch that potato chips hardly have competition. they satisfy our cravings for salty, crunchy or fatty foods. And they are convenient – there is nothing simpler and quicker than munching snacks straight out of a pack. Positioned as a ‘cool’ munch by marketers/advertisers, potato chips are perhaps one of the most visible instant-snack items and also among the fastest-moving packaged snacks in any grocery, supermarket or departmental store. this despite warnings from the experts about regular potato chips not being healthy (no, the ‘potato’ as a prefix does not make it healthy) – they are deep-fried and contain saturated fats, artificial flavours and other unhealthy elements. so, exactly how bad or unhealthy are they? While no one can deny that they provide instant energy to the body, there is no ignoring the cons either. the Indian standard has spelled out various requirements for potato chips and snack food covering quality, safety and acceptability aspects. At Consumer Voice, we selected 12 widely consumed brands in this category and held them up against essential parameters. We also checked them on the validity of their own claims. As you will read in the report produced below, some brands clearly failed to meet the requirements on some basic quality parameters.

A Consumer Voice Report

Potato ChipsA ready-to-munch option, but know your brands well

Comparative Test


Potato Chips

We tested 10 brands of potato chips/wafers (plain, salted) and two brands of potato crisps (made of dried potatoes and other ingredients) on various

quality and acceptability parameters. As per our standard procedure, we undertook market research to identify the popular and regular-selling brands across the country. All brands, except Opera and Kakaji, claim to be proprietary food – this means there are no specific specifications for them under the Food Safety and Standards Regulations. The grading of the brands has been adopted based on International Grade Scale.

The key parameters for which the 12 brands were tested included fat content, protein content, trans fat, quality of extracted oil, rancidity and organoleptic

The testing was conducted as per requirements specified in the relevant Indian Standard, IS: 12575:2010. There are no product-specific requirements for potato chips in FSS Regulations.

Grazing, Snacking, Multiple Eating, etc.Have you heard of the term ‘grazing’? Well, it refers to eating outside of the regular meals/meal schedules, and is intended to fill in the nutritional ‘gaps’ that may occur during the day. The rationale given for grazing is that it keeps you from getting too hungry and then overeating. The problem, though, is that many people ignore the bit about eating only a little. Not just that, they are snacking not on healthy foods but mostly on chocolate, crisps and other calorie-laden products.

The point to remember is that between-meal bites can work to your advantage if you make the right choices.

qualities. Potato chips and other snack foods are expected to have a pleasant taste as well as give instant energy to the body, and are therefore expected to be rich in flavour and taste and high on energy value. At the same time, the fat content should be as low as possible. Microbiological safety being a major health-related parameter, we also conducted tests for coliform count and yeast and mould. The testing was conducted at an NABL-accredited laboratory.

Key Findings• Basedontheoveralltestfindings,UncleChippsandPringlesarethetopperformersamongpotato

chips/wafers and potato crisps, respectively.

• Thevalue-for-moneybrandisBalaji.

• Pringlesisthetopperformerinthesensorypaneltestsaswell.

• SaltpercentagewaslowestinUncleChippsandhighestinOpera.

• DietaryfibrewashighestinHaldiram’sandlowestinKettleStudio.

• Moisturecontentinthreebrands–Opera,KakajiandKaleva–washigherthanthelimitspecifiedbyIndian Standard.

• Transfatwasnotdetectedinanyofthetestedbrands.

• Proteinandenergyvaluesinmostofthebrandswerefoundlowerthantheclaimedvalues.

• FatandperoxidevalueswerefoundtobeonthehighersideinKakajiandKaleva.

• Allthetestedbrandswerefoundtobewithintheacceptablelimitsforyeastandmouldandcoliformcount.

12 •

Rank Total Score out of 100 (Rounded off)

Brand Claim Net Weight (gm) MRP (Rs) Cost per 10 gm (Rs) Best before Manufactured/Marketed by

Potato Chips/Wafers

1 87 Uncle Chipps* Potato chips 60 gm (50 gm + 10 gm extra) (20% extra)

20 3.33 Four months Pepsico India Holdings Pvt. Ltd

2 86 Haldiram’s* Potato chips 200 60 3.0 Four months Haldiram Snacks Pvt. Ltd

2 86 Balaji* Potato wafers 45 10 2.22 Three months Balaji Wafers Pvt. Ltd

2 86 Lay’s* Potato chips 95 35 3.68 Five months Pepsico India Holdings Pvt. Ltd

2 86 Parle’s* Potato chips 85 30 3.53 180 days Parle Biscuits Pvt. Ltd

3 85 Diamond* Potato chips 40 10 2.50 Five months Prataap Snacks Pvt. Ltd

3 85 Bingo* Potato chips 60 20 3.33 Four months ITC Ltd

4 83 Kettle Studio* Potato chips 47 40 8.51 Six months Excelus Brands LLP

5 75 Kaleva* Aloo wafers 140 60 4.28 Three months Kaleva

6 73 Kakaji Aloo wafers 140 60 4.28 Three months Vishwanath & Co. (Regd)

Potato Crisps

1 88 Pringles* Potato crisps 110 99 9.0 12 months Kellogg India Pvt. Ltd

2 78 Opera Potato crisps 60 60 10 Nine months Cremica Food Industries Ltd

BRANDS TESTED

Comparative Test

*Proprietary food

Score Rating: >90: very good*****, 71–90: good****, 51–70: fair***, 31–50: poor**, up to 30: very poor*

CV RECOMMENDATIONS | TOP PERFORMERS

Potato Chips/Wafers

Uncle Chipps

Potato Crisps

Pringles

VALUE FOR MONEY

Balaji


Rank Total Score out of 100 (Rounded off)

Brand Claim Net Weight (gm) MRP (Rs) Cost per 10 gm (Rs) Best before Manufactured/Marketed by

Potato Chips/Wafers

1 87 Uncle Chipps* Potato chips 60 gm (50 gm + 10 gm extra) (20% extra)

20 3.33 Four months Pepsico India Holdings Pvt. Ltd

2 86 Haldiram’s* Potato chips 200 60 3.0 Four months Haldiram Snacks Pvt. Ltd

2 86 Balaji* Potato wafers 45 10 2.22 Three months Balaji Wafers Pvt. Ltd

2 86 Lay’s* Potato chips 95 35 3.68 Five months Pepsico India Holdings Pvt. Ltd

2 86 Parle’s* Potato chips 85 30 3.53 180 days Parle Biscuits Pvt. Ltd

3 85 Diamond* Potato chips 40 10 2.50 Five months Prataap Snacks Pvt. Ltd

3 85 Bingo* Potato chips 60 20 3.33 Four months ITC Ltd

4 83 Kettle Studio* Potato chips 47 40 8.51 Six months Excelus Brands LLP

5 75 Kaleva* Aloo wafers 140 60 4.28 Three months Kaleva

6 73 Kakaji Aloo wafers 140 60 4.28 Three months Vishwanath & Co. (Regd)

Potato Crisps

1 88 Pringles* Potato crisps 110 99 9.0 12 months Kellogg India Pvt. Ltd

2 78 Opera Potato crisps 60 60 10 Nine months Cremica Food Industries Ltd

BRANDS TESTED

Potato Chips

14 •

Comparative Test

TEST RESULTSFOR PHYSICOCHEMICAL PARAMETERS

Protein | Fat (on dry basis) | Energy Value | Moisture | Acid-Insoluble Ash (on dry basis) | Acid

Value of Extracted Fat | Peroxide Value | Salt | Dietary Fibre | Rancidity | Trans Fat | Saturated

Fat | Polyunsaturated Fat | Monounsaturated Fat | Carbohydrates | Mineral Oil

Protein

Protein is an essential nutrient. It plays an important role in cellular maintenance, growth and functioning of the human body.

Indian Standard has not specified any requirement for protein content in potato chips and snack food. However, it is expected to be present in potato chips and snack food as derived from fresh potatoes (containing protein) and cereals that also contain protein.

• The highest amount of protein was found in Kettle Studio (6.69 gm/100 gm) and the lowest in Kakaji (6.13 gm/100 gm).

• Protein value in most of the brands was found to be lower than the claimed value.

Fat (on dry basis)

All deep-fried food products contain certain amounts of fat. The fat component adds richness of flavour and contributes to a smooth texture. As per Indian Standard, fat content of potato chips and snack food should not be more than 35 per cent by mass. As a matter of fact, it should be as low as possible.

• Two brands, Kakaji and Kaleva, had fat content higher than the specified limit of 35 per cent. It may be noted that six brands – Lay’s, Uncle Chipps, Bingo, Parle’s, Kakaji and Kaleva – claimed to contain fat higher than the specified limit. Fat content in the rest of the brands was found within the maximum permissible limit.

Energy Value

Energy value is the amount of calories which our body obtains from food. While there is no requirement prescribed in Indian Standard, energy value is expected to be higher in potato chips and snack food.

• In most of the brands, energy value was found to be less than the claimed value.

• Energy value was highest in Bingo (545.73 kcal/100 gm), followed by Balaji (544.5 kcal/100 gm), Kettle


Potato Chips

Studio (543.72 kcal/100 gm) and Uncle Chipps (542.5 kcal/100 gm).

Moisture

Moisture generally refers to the presence of water in a product. A product with less amount of moisture is better as it translates into a longer shelf life. As per Indian Standard, moisture content in potato chips shall not be more than two per cent by mass.

• Three brands – Opera, Kakaji and Kaleva – had moisture content exceeding the specified limit.

• The lowest moisture content was in Parle’s (1.29 per cent), followed by Haldiram’s (1.45 per cent) and Uncle Chipps (1.51 per cent).

Acid-Insoluble Ash (on dry basis)

Acid-insoluble ash indicates the presence of impurities like sand, dirt and dust in food. It is expected to be minimum in potato chips and snack food. As per Indian Standard, acid-insoluble ash should not be more than 0.15 per cent by mass.

• Acid-insoluble ash was found within the specified limits. It was lowest in Uncle Chipps (0.02 per cent) and highest in Diamond (0.09 per cent).

Acid Value of Extracted Fat

Acid value of a packaged product is related to its shelf life. As per Indian Standard, it should not be more than two.

• All brands met the requirement for this parameter.

Peroxide Value

Peroxide value is used as a measurement of the extent to which rancidity reactions have occurred during storage. As per Indian Standard, it should not be more than 10.

• Peroxide value in Kakaji and Kaleva was found higher than the specified limit. All other brands passed the test. Peroxide value was lowest in Uncle Chipps.

Salt

Salt is an essential mineral commonly and used for seasoning as well as food preservation. Salt also inhibits the growth of bacteria in a food item. As per WHO, the daily requirement for salt intake in the average diet is a maximum 5 grams.

Salt content is expected to be low in potato chips and snack food. As per Indian Standard, salt should

not be more than 2.5 per cent by mass in potato chips.

• Salt was found within the maximum limit specified in Indian Standard. It was lowest in Uncle Chipps (0.23 per cent), which, as stated earlier, is good for consumers. Salt was found highest in Opera (1.76 per cent).

Dietary Fibre

Dietary fibre has many health benefits. It can reduce one’s risk for heart disease, diabetes and some cancers, and also help in weight control. Fibre is important for digestive health too. Although Indian Standard has not specified any requirement for dietary fibre, it is expected to be as high as possible in potato chips and snack food.

• Dietary fibre was highest in Haldiram’s (4.40 gm/100 gm), which, as stated earlier, is good for consumers. It was lowest in Kettle Studio (4.04 gm/100 gm).

Rancidity (in Product and in Extracted Oil)

Rancidity is the chemical decomposition of fats, oils and other lipids. When these processes occur in food, undesirable odours and flavours can result. Rancidity can also detract from the nutritional value of the food.

• All brands were free from rancidity.

Trans Fat

Trans fat is considered to be the worst type of dietary fat. Just like saturated fats, these also raise the

16 •

PHYSICOCHEMICAL SCORES

Potato Chips/Wafers Potato Crisps

Parameter ↓ % Weightage Uncle Chipps Haldiram's Balaji Lay’s Parle’s Diamond Bingo Kettle Studio Kaleva Kakaji Pringles Opera

Protein 12 9.29 9.67 9.32 9.22 9.59 9.40 9.43 9.61 9.25 9.21 9.27 9.39

Fat (on dry basis) 8 6.42 6.73 5.99 6.85 6.66 6.77 6.07 6.25 4.40 4.17 6.66 4.93

Energy value 6 4.20 4.08 4.29 4.08 4.11 4.0 4.35 4.25 3.76 3.52 4.02 3.88

Moisture 5 3.98 4.10 3.94 3.88 4.42 3.12 3.26 3.24 1.25 1.0 3.34 2.20

Acid-insoluble ash (on dry basis) 5 5.0 4.85 4.10 4.70 4.40 3.95 4.25 4.40 4.55 4.85 4.55 4.10

Acid value of extracted fat 5 4.8 4.9 4.50 4.60 4.7 4.60 4.50 4.60 4.65 4.75 4.7 4.55

Peroxide value 5 4.97 4.76 4.75 4.77 4.73 4.83 4.82 4.85 1.5 1.5 4.76 3.55

Salt 5 4.97 4.12 4.61 4.07 4.23 4.48 4.02 4.11 4.06 3.99 4.16 3.49

Dietary fibre 5 4.25 4.40 4.42 4.20 4.09 4.3 4.31 4.04 4.37 4.11 4.31 4.33

Rancidity 4 4 4 4 4 4 4 4 4 4 4 4 4

Trans fat 3 3 3 3 3 3 3 3 3 3 3 3 3

Saturated fat 3 2.55 2.49 2.52 2.69 2.58 2.59 2.44 2.45 2.40 2.28 2.68 2.34

Polyunsaturated fat 3 2.61 2.46 2.62 2.72 2.58 2.57 2.50 2.49 2.73 2.62 2.73 2.57

Monounsaturated fat 3 2.59 2.60 2.65 2.56 2.61 2.60 2.65 2.64 2.76 2.78 2.57 2.73

Carbohydrates 3 2.76 2.77 2.66 2.85 2.75 2.76 2.70 2.70 2.34 2.16 2.75 2.51

Mineral oil 2 2 2 2 2 2 2 2 2 2 2 2 2

Comparative Test

level of ‘bad’ cholesterol in our blood. It should be as low as possible in potato chips and snack food.

• Trans fat was not detected in any of the brands.

Saturated Fat

Saturated fat is a ‘bad’ fat found in relatively high amounts in many meat and dairy products, including cream milk, cheese, butter and cream.

• Highest amount of saturated fat was found in Kakaji (15.96 gm/100 gm). It was lowest in Lay’s (12.52 gm/100 gm) – this is good for consumers.

Polyunsaturated Fat

Oils that contain polyunsaturated fats are typically liquid at room temperature but start to turn solid when chilled. Olive oil is an example of a type of oil that contains polyunsaturated fats. Polyunsaturated fats can help reduce bad cholesterol levels in your blood and this, in turn, can lower your risk of heart disease and stroke.

• Highest amount of polyunsaturated fat was found in Pringles (10.26 gm/100 gm) – this is good for consumers. It was lowest in Haldiram’s (8.41 gm/100 gm).

Monounsaturated Fat

Monounsaturated fat is one of the healthy fats, along with polyunsaturated fat. Monounsaturated fats are found in plant foods, such as nuts, avocados and vegetable oils. Eating moderate amounts of monounsaturated (and polyunsaturated) fats in place of saturated and trans fats can benefit your health.

• Highest amount of monounsaturated fat was found in Kakaji (10.55 gm/100 gm). It was lowest in Lay’s (9.11 gm/100 gm).

Carbohydrates

Carbohydrates are the sugars, starches and fibres found in fruits, grains and vegetables and milk products. Carbohydrates are a source of energy. They are one of the basic food groups and are important


PHYSICOCHEMICAL SCORES


Parameter ↓ % Weightage Uncle Chipps Haldiram's Balaji Lay’s Parle’s Diamond Bingo Kettle Studio Kaleva Kakaji Pringles Opera

Protein 12 9.29 9.67 9.32 9.22 9.59 9.40 9.43 9.61 9.25 9.21 9.27 9.39

Fat (on dry basis) 8 6.42 6.73 5.99 6.85 6.66 6.77 6.07 6.25 4.40 4.17 6.66 4.93

Energy value 6 4.20 4.08 4.29 4.08 4.11 4.0 4.35 4.25 3.76 3.52 4.02 3.88

Moisture 5 3.98 4.10 3.94 3.88 4.42 3.12 3.26 3.24 1.25 1.0 3.34 2.20

Acid-insoluble ash (on dry basis) 5 5.0 4.85 4.10 4.70 4.40 3.95 4.25 4.40 4.55 4.85 4.55 4.10

Acid value of extracted fat 5 4.8 4.9 4.50 4.60 4.7 4.60 4.50 4.60 4.65 4.75 4.7 4.55

Peroxide value 5 4.97 4.76 4.75 4.77 4.73 4.83 4.82 4.85 1.5 1.5 4.76 3.55

Salt 5 4.97 4.12 4.61 4.07 4.23 4.48 4.02 4.11 4.06 3.99 4.16 3.49

Dietary fibre 5 4.25 4.40 4.42 4.20 4.09 4.3 4.31 4.04 4.37 4.11 4.31 4.33

Rancidity 4 4 4 4 4 4 4 4 4 4 4 4 4

Trans fat 3 3 3 3 3 3 3 3 3 3 3 3 3

Saturated fat 3 2.55 2.49 2.52 2.69 2.58 2.59 2.44 2.45 2.40 2.28 2.68 2.34

Polyunsaturated fat 3 2.61 2.46 2.62 2.72 2.58 2.57 2.50 2.49 2.73 2.62 2.73 2.57

Monounsaturated fat 3 2.59 2.60 2.65 2.56 2.61 2.60 2.65 2.64 2.76 2.78 2.57 2.73

Carbohydrates 3 2.76 2.77 2.66 2.85 2.75 2.76 2.70 2.70 2.34 2.16 2.75 2.51

Mineral oil 2 2 2 2 2 2 2 2 2 2 2 2 2

Potato Chips

to a healthy life. No requirement for carbohydrates in potato chips and snack food has been specified in Indian Standard.

• Carbohydrates amount was highest in Lay’s (57.36 gm/100 gm) and lowest in Kakaji (49.73 gm/100 gm).

Mineral Oil in Extracted Fat/Oil

A mineral oil is any of various colorless, odourless, light mixtures of alkanes from a non-vegetable (mineral) source.

• All brands were free from presence of mineral oil in extracted fat/oil.

18 •

FOR MICROBIOLOGICAL ACTIVITY (TOTAL PLATE COUNT, YEAST AND

MOULD)Microbiological contamination is a very serious

issue for food products. For potato chips, wafers and crisps, we conducted tests for yeast and mould as well as coliform count. These microorganisms are responsible for many food-borne diseases. Due to improper or poor hygienic condition during the manufacturing process, microorganisms may occur in the finished product.

The national standards have not prescribed any limit for microbial contamination in potato chips and snack food.

• Yeast and mould was less than 10 cfu/100 gm in all the brands.

• Coliform count was also less than 10 cfu/100 gm in all the brands.

FOR SENSORY ATTRIBUTESSensory panel tests were conducted in a test lab

under the guidance and supervision of trained experts. The following parameters were judged and rated by the panellists: colour and appearance, texture, flavour, crispness, taste, saltiness, oiliness and overall acceptability.

So, the potato chips shall have an attractive light to golden yellow colour without brown spots, crisp texture, and pleasant taste and odour. Salt and other seasoning shall be added to taste. The chips shall be of thickness between 1.0 mm and 2.5 mm, free from blisters, excessive brown pigmentation and wet centres. The chips shall not be excessively greasy and shall be free from rancidity, and other objectionable odour and taste. Snack food should also have attractive texture and pleasant flavour and taste. These should be free from insects, insect residues, rodent hair and excreta, and fungal infestation.

Brand Score out of 12

Pringles 11.5

Bingo 10

Balaji 10

Diamond 10

Lay’s 9.2

Uncle Chipps 9.2

Haldiram’s 9.0

Parle’s 8.7

Kettle Studio 8.2

Opera 7.5

Kaleva 7.5

Kakaji 7.0

FOR GENERAL QUALITIES

Marking/Labelling

• Pringles was the most liked brand among panellists, and was followed by Bingo, Balaji and Diamond.

• Kakaji was the least favoured among all tested brands.


Parameter ↓ % Weightage Uncle Chipps Haldiram’s Balaji Lay’s Parle’s Diamond Bingo Kettle Studio Kaleva Kakaji Pringles Opera

Marking 2 1.8 2 2 1.8 2 2 2 2 2 1.8 2 2

Packing 2 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1 1 2 1.5

Net weight 2 2 2 2 2 2 2 2 2 2 2 2 2

Dear readers: We are open to hearing your suggestions on products and services that you believe should be reviewed/tested by Team Consumer Voice. You may write to [email protected]

Comparative Test


Net WeightThe weight of the product is measured and compared with the declared values on the pack. The net weight should be within the tolerance limit permitted in Legal Metrology Rules.

Net weight of all the tested brands was found as claimed and they scored equally well on this parameter.

The following details shall be marked on each pack:

(a) Name of the material and trademark if any

(b) Name and address of manufacturer

(c) Batch or code number

(d) Net quantity

(e) Date of manufacture

(f) List of ingredients

(g) Nutritional information

(h) Permitted additives

(i) MRP

(j) The ‘best before’ date

(k) Green dot denoting vegetarian status

(l) Standard mark if any

(m) FSSAI license number

(n) Customer-care details

• All brands had the necessary information on their packs. It may, however, be noted that Lay’s, Uncle Chipps and Kakaji did not provide storage instructions.


Parameter ↓ % Weightage Uncle Chipps Haldiram’s Balaji Lay’s Parle’s Diamond Bingo Kettle Studio Kaleva Kakaji Pringles Opera

Marking 2 1.8 2 2 1.8 2 2 2 2 2 1.8 2 2

Packing 2 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1 1 2 1.5

Net weight 2 2 2 2 2 2 2 2 2 2 2 2 2

Packing

Potato chips and snack food should be packed in flexible thermoplastic films of multilayer or monolayer construction, or their laminates with paper and/or aluminium foil so as to provide high resistance to the passage of oxygen, light and water vapour, as also to produce an effective heat seal. The airtight sealing shall be done with or without nitrogen flushing to retain the contents in a fresh condition.

• All the brands of potato chips and wafers, except for Pringles, were packed in multilayer or monolayer aluminium foil. Pringles was packed in a cylindrical cardboard box.

Potato Chips

20 •

We eat cookies for no particular reason or occasion. We eat them as accompaniment to our daily cuppa, we eat them because we feel like, we eat them because there is nothing better to do at that point in time and space. sure, we get an instant energy rush and that’s an important aspect. talking of energy, it is one of the things whose value needs to be mentioned on the label of a cookie pack. this and the amounts of protein, carbohydrate, fat, etc. With so many variants and types and brands of cookies hitting the retail shelves regularly, we are definitely better off knowing on what basis to pick our brands. the best place to start with is the information given on the food label, and that’s what we will do in the following report. Given that nutrition labels are not always easy or simple enough to interpret, or standardised for enabling comparison among brands in a specific category, we have here culled out the essential details on the basis of which we as consumers can make informed and healthy choices.

Nutritional labelling of packaged food products refers to the disclosure of the main nutrients, such as energy, fat, protein, carbohydrate, sugar and salt content, on the label. As per

India’s Food Safety and Standards (Packaging & Labelling) Regulations, 2011, mandatory nutritional information or nutritional facts per 100 grams or 100 millilitres or per serving of the product shall be given on the label. Such information shall contain the following:

a) energy value in kilocalories (kcal)

Butter CookiesCutting through the clutter

b) the amounts of protein, carbohydrate (specify quantity of sugar) and fat in gram (g) or ml

c) the amount of any other nutrient for which a nutrition or health claim is made

Note that there is no requirement for salt or sodium declaration. This is despite the recommendation of Codex Alimentarius Commission – a joint intergovernmental body of Food and Agriculture Organization (FAO) of the United Nations (FAO) and World Health Organization (WHO) with over 185 member states – for declaring saturated fat and sodium or salt.

Decoding Food Labels


Per-Day Recommended Dietary Allowance (RDA) for Indians

This is as per the manual of Dietary Guidelines for Indians, 2011, prepared by National Institute of Nutrition, Hyderabad.

10 Brands of Butter Cookies

So, there are these 10 brands of butter cookies that we brought to the table for scrutiny of the nutritional information given on their labels.

Sl No.

Brand Manufactured/Marketed by

1 Anmol Butter Bake Anmol Bakers Pvt. Ltd

2 Priyagold Butter Bite

Surya Food & Agro Ltd

3 Parle 20-20 Butter Cookies

Parle Biscuits Pvt. Ltd

4 Tasty Treat Butter Cookies

Unibic Foods India Pvt. Ltd

5 Britannia Good Day Butter Cookies

Britannia Industries Ltd

6 ITC Mom’s Magic Rich Butter

ITC Ltd

7 Unibic Butter Cookies

Unibic Foods India Pvt. Ltd

8 Bonn Butter Cookies

S.S. Food Industries

9 Richlite Butter Delight

Richfield Industries Pvt. Ltd

10 Cremica Butter Cookies

Mrs. Bector’s Food Specialties Ltd

Fat SpreadButter Cookies

22 •

Sl No. Brand

Energy Protein

kcal per 100 gm % of RDA for man (sedentary work )

% in 100 gm % of RDA for man

1 Anmol 485 20.9 8.4 14.0

2 Priyagold 515 22.2 9.1 15.2

3 Parle 490 21.1 6.4 10.4

4 Tasty Treat 498 21.5 7.2 12.0

5 Britannia 494 21.3 7.0 11.7

6 ITC 502 21.6 8.5 14.2

7 Unibic 509 21.9 7.4 12.3

8 Bonn 491 21.2 6.8 11.3

9 Richlite 481 20.7 6.5 10.8

10 Cremica 480 20.7 6.6 11.0

Energy and Protein



Key Findings

• Onanaverage,100gramsofbuttercookiesgiveone-fifth RDA for energy as prescribed for a man (sedentary work).

• Energyvaluewashighest inPriyagold(515kcalper 100 grams) and lowest in Cremica (480 kcal per 100 grams).

• Proteinwas found highest in Priyagold (9.1 percent) and lowest in Parle (6.4 per cent).

Traffic Light Labelling

In year 2007, Food Standards Agency (FSA) of the United Kingdom developed traffic light labelling guidelines with these objectives:

• toallowconsumerstocorrectlyidentifyhealthierfood products

• toassistconsumerstomakecomparisonsbetweenproducts easily

• toallowconsumerstomakethesecomparisonsata glance

The traffic light labelling system uses three colours – green, amber and red – to show at a glance if a particular food has low, medium or high amounts of fat, sugar and salt. Foods that are high in fat, sugar and salt are linked with obesity and non-communicable diseases such as diabetes, hypertension and high blood pressure. As yet, the UK labelling system is not followed in India.

This is how the criteria for foods (per 100 grams) are set out in the traffic light labelling system:

Traffic Light Rating of Butter Cookies Brands

Ingredient Green (low content)

Amber (medium content)

Red (high content)

Fat less than 3 gm between 3 gm and 17.5 gm more than 17.5 gm

Sugar less than 5 gm between 5 gm and 22.5 gm more than 22.5 gm

Salt less than 0.3 gm between 0.3 gm and 1.5 gm more than 1.5 gm

Results can be interpreted as follows:

Green: eat often (desirable); amber: eat occasionally (neutral); red: eat sparingly (undesirable)

Sl No. Brand Fat Sugar Salt

In 100 gm Light In 100 gm Light In 100 gm Light

1 Anmol 20.0 Red 10.9 Amber NM -

2 Priyagold 21.2 Red 12.1 Amber 0.73* Amber

3 Parle 20.2 Red 23.2 Red NM -

4 Tasty Treat 22.0 Red 27.0 Red NM -

5 Britannia 22.0 Red 22.0 Amber NM -

6 ITC 22.3 Red 23.3 Red NM -

7 Unibic 24.2 Red 25.2 Red 0.43* Amber

8 Bonn 20.4 Red 20.6 Amber NM -

9 Richlite 19.5 Red 24.0 Red NM -

10 Cremica 19.5 Red 25.0 Red NM -

NM: Not mentioned*Converted by multiplying sodium with 2.54

Fat SpreadButter Cookies

24 •

Key Findings

• Trafficlightforfatwasredinallbrands–thismeanseatsparingly(undesirable).RichliteandCremicahadlowest fat (19.5 per cent) and Unibic had the highest (24.2 per cent).

• TrafficlightforsugarwasamberforAnmol,Priyagold,BritanniaandBonn–thismeanseatoccasionally.For all other brands, it was red – this means eat sparingly (undesirable).

• WhiledeclarationofsodiumorsaltonfoodproductslabelisnotmandatoryasperIndianlaw,sodiumwasdeclared by Priyagold and Unibic. This is a good, consumer-friendly practice on the part of these brands.

• Traffic light for salt was amber for Priyagold and Unibic – this means eat occasionally. Traffic lightinterpretation for salt could not be done in the other brands as they had not declared sodium/salt on their labels.



Fat SpreadFood & Stuff

Foodborne illnesses are one of the leading causes of preventable illness and death worldwide, as stated by World Health organization (WHo) in its report ‘Global Burden of Foodborne Diseases’. Foodborne illness can affect anyone who eats contaminated food and hence it is necessary to understand how food becomes unsafe to eat and what proactive measures can be taken to keep food safe.

Foodborne illnesses are caused by microbes, toxins and chemicals. For a foodborne illness to occur, the following conditions must be present:

The microorganism or its toxin must be present in food.

The food must be suitable for the microorganism to grow.

The temperature and humidity level must be suitable for the microorganism to grow.

Enough time must be given for the microorganism to grow (and to produce a toxin).

The food must be eaten.

Foodborne illnesses can be further classified into foodborne infections and food poisoning.

Foodborne IllnessesContamination versus spoilage

a) Foodborne infections: They are caused by the ingestion of food containing live bacteria which grow and establish themselves in the human intestinal tract. The live bacteria multiply within the individual’s intestines and can sometimes invade the bloodstream and spread to other organs. In addition to cramps and diarrhoea, victims often have fever, and they sometimes develop complications in other organs.

b) Food poisoning: One type of food poisoning is chemical poisoning, which happens due to consumption of food items that have chemical compounds or metals – such as lead and mercury – that are harmful for human beings. Foodborne intoxication is caused by ingesting food items that already contain toxins. Food intoxication can occur

26 •

Food & Stuff

due to consumption of poisonous plant tissues such as mushrooms or poisonous animal tissues such as shellfishes, or foods that become toxic because of microbial growth in the food items (examples include botulism and staphylococcal intoxication).

Food poisoning and food infections are often confused as a single term but their causes, effects and treatments are different.

Food ‘Contamination’ and ‘Spoilage’

Food contamination is when food is contaminated with microorganisms or substances and eating it could result in foodborne disease. Food spoilage is any undesired change in the natural colour, taste or texture of food that makes it unfit for consumption because it has lost its quality and nutritional value.

Food spoilage can be referred to as damage to the edible quality of food. An unacceptable change in taste, smell or appearance indicates spoilage. Usually, spoilage means that a food is unsafe to eat but there are exceptions to this rule (spoiled milk made into cheese is an example).

Food contamination refers to exposure of a food item to microbes, toxins or chemicals, making it unfit for human consumption. It’s important to note that a food item can be contaminated without exhibiting any spoilage characteristics such as altered taste, appearance or smell.

Food contamination is when food is contaminated with microorganisms or substances and eating it could result in foodborne disease. Food spoilage is any undesired change in the natural colour, taste or texture of food that makes it unfit for consumption because it has lost its quality and nutritional value.

Different Types of Contamination Leading to Spoilage

a) Microbial contamination and microbial spoilage: Microbial contamination is caused by microorganisms like fungi (moulds, yeasts) and bacteria. They thrive on nutrients present in food and multiply rapidly, altering the colour, texture and odour of the food and making it unfit for human consumption. At times, consumption of food spoiled by microbes can become very harmful

for human beings. Although a large majority of the microorganisms responsible for food spoilage are not pathogenic to humans, their consumption must be avoided because they are not nutritious and may make them sick (induce diarrhoea or vomit).

A furry growth indicates spoilage caused by the growth of moulds and yeasts. The moulds grown on food items are usually white, black, yellow or green in colour, though the colours could differ in different food items. Microbial spoilage by moulds and yeasts include souring of milk, growth of mould on bread, and rotting of fruit and vegetables. Spoilage caused by bacteria is considered to be more harmful than any other microbial spoilage as some bacteria release chemical substances that are very toxic for human beings.

Factors Affecting the Growth of Microorganisms in Foods

The growth of microorganisms in food products is affected by a lot factors. Broadly they can be classified as extrinsic factors and intrinsic factors.

Extrinsic factors: These are the environmental factors that may affect quality of food and include temperature, humidity and oxygen. Controlling these factors can be helpful in delaying/preventing food choices.

Intrinsic factors: These exist as part of the food product itself and influence the growth of microbes, altering the pH of the food item, its structure, moisture content, nutrient content and so on. For example, meat has both fat and protein in good amounts and hence it is more prone to spoilage as it can provide nutrients for microbial growth.


b) Chemical contaminants and chemical spoilage: Chemical reactions in foods are responsible for changes in the colour and flavour of foods during processing and storage. Chemical changes begin automatically in fruits and vegetables after they are harvested, and in animal tissues when the animals are slaughtered. Both animal and plants have enzymes. After fruits and vegetables are cut and animals are slaughtered, enzymes act on the tissues and start the decomposition process; this is also called autolysis (self-destruction). At this stage, it becomes easier for microbes to spoil meat, fruits and vegetables. Proper handling is needed to maintain the quality of these food items so that they remain fit for human consumption.

When the cells of fruits and vegetables such as apples, potatoes, bananas and avocados are cut and exposed to the air, enzymes present in the cells bring about a chemical reaction in which colourless compounds are converted into brown-coloured compounds. This is called enzymatic browning. It may alter the appearance of fruits and vegetables but they remain fit for human consumption.

There is evidence of contamination of food with pesticides, fertilisers and other chemicals that come in contact during processing or with metals such as mercury. Food items can also come in touch with chemicals such as sanitisers, disinfectants, cockroach sprays and detergents if not handled well. Food handlers must take necessary precautions while handling food items.

c) Physical contaminants and physical spoilage: Physical spoilage is caused by physical damage to food during harvesting, processing or distribution. The damage increases the chance of chemical or microbial spoilage and contamination because the protective outer layer of the food is damaged. For example, when an apple skin is damaged, the apple rots more quickly. Physical contamination can occur at any stage of the food chain: for example, stones, bones, twigs, pieces of glass or foreign objects can enter food during handling and preparation.

How Can Food Contamination and Spoilage Be Avoided?

In order to prevent contamination, there must be a set of regulations for food production, preparation and handling which must be strictly followed.

Fat SpreadFoodborne Illnesses

28 •

Microbial food contamination

• One must thoroughly wash hands before and during food preparation, especially after using the toilet, and while handling raw food or waste.

• Raw and cooked foods should be separated, because raw foods are a source of microorganisms and can re-contaminate prepared foods. Precautions must be taken while refrigerating cooked and raw foods.

• Soap and clean water should be available for hand washing at convenient locations.

• Sick food handlers must not prepare food. One sick person can cause a foodborne disease outbreak.

Chemical contamination

• All chemicals (detergent, disinfectant, sanitiser, cockroach spray, etc.) present near the food-preparation area should be removed.

• The dishes must be washed well and the detergent used to clean the utensils must be removed properly. The utensils must be washed with plain water every time before use.

Physical contamination

• Physical contaminants such as stones and husk particles must be removed properly. One

can sieve them or pick them out with clean fingers.

Role of Healthy Food in Fighting Contamination and Spoilage

Consumption of foods rich in vitamins, minerals, protein and omega-3 fatty acids strengthens our immune system, which is then able to fight back most infections or microbial invasions. Antioxidants subdue the effect of carcinogenic chemicals that are accidentally consumed by individuals.

Some Go-To Foods

Omega-3 fatty acids

Fish, flax seeds, walnuts

Protein

Eggs, soybean, chicken, other meat and dairy products

Antioxidants

Berry fruits, citrus fruits, herbs and spices such as clove, cumin, turmeric, cinnamon, basil, oregano, etc.

Vitamins and minerals

Fruits and vegetables

– Compiled by Richa Pande

Food & Stuff

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BFSI

It’s all about post-retirement income planning. You accumulate your money diligently and regularly with an insurer, so as to earn regular pension after retirement from regular work. there is no shortage of insurers offering pension/annuity plans, making it easy for one to choose from a bevy of options. However, before you choose a certain plan, it is important that you understand exactly what that plan has to offer, its advantages, disadvantages and all other related details. there are plenty of pension plans available in the market, each with its own set of benefits and advantages. the following report is an attempt to study unit-linked retirement pension plans providing deferred annuity, and also compares plans offered by various companies.

subas tiwari & Gopal Ravi Kumar

Pension plans are offered by life insurance companies to those who are looking at retirement income, both for those who are assured of pension by their employer and for those working in the unorganised sector and

not covered by pension schemes. Pension plans come with two options: immediate annuity and deferred annuity. With an immediate annuity (as explained in detail in the October 2016 issue of Consumer Voice), you give the insurer a lump sum of cash in return for regular lifelong income payments. Also, as the name

Pension Plansthe answer to ‘what after retirement’

indicates, an immediate annuity starts paying out right away. So, if a person wants a monthly pension and has lump-sum money to spare, he can buy an immediate annuity plan and start getting pension.

In the case of deferred annuity plans, you first pay premiums for ‘x’ number of years. Once you retire, then you start getting pension income.

Salient Features and Advantages

A pension plan consists of two distinct phases: accumulation and distribution. During accumulation

32 •

BFSI

phase (typically before retirement), you contribute to your pension corpus. You invest regularly each month and ‘accumulate’ the wealth. You start getting pension later in life. Thus, when you invest your money in, say, ULIPs, then you are in the accumulation phase.

The distribution phase is when you start withdrawing money from your accumulated wealth for consumption purposes. So, at the time of your retirement or even before that, you start taking out a certain amount per month for next ‘N’ years.

Clearly, one of the biggest benefits of a pension plan is that it provides income after retirement. While some plans provide you with lifelong income, there are others that offer better returns. Let’s consider the other key advantages of being a pension-plan beneficiary.

• Funds at times of need

Some pension plans provide lump-sum payments that can help you meet major expenses. Before you choose a policy, make sure you go over the details of the policy so you know exactly what you will be getting from it.

• Tax benefits

Investing in an insurance policy comes with a set of tax benefits that you can avail. The same applies to retirement insurance plans. Check all the policies that you may have short-listed for the tax benefits they offer.

• Start early

Investing in a pension plan from an early age can help you save considerably on tax payments. Check your policy details and understand the ways in which you may benefit from the available provisions of tax exemption under Section

80CCC and Section 10 (10A) of the Income Tax Act.

• Insurance protection

In addition to providing income post retirement, pension plans also provide insurance cover. This ensures that the surviving spouse does not have to undergo the financial burden following an unfortunate event.

What, If Any, Are the Disadvantages?

• There are better options for growth of your wealth

If you are looking for a better return on your investment, then this may not suit you. There are better market options such as mutual funds and index funds which should give much better returns

• No predictable returns for annuity

A lot of pension products do not give a clear idea (at the time of purchase) on how much will you get at the end of the tenure of the policy. There are, however, definite references and indicators on the fund value which you could get back on tax-free basis. But once the balance of the fund (normally two-third) on maturity is reinvested in an annuity product of the insurance company, they are very vague about what you will get thereafter.

• Rigidness and no flexibility

Almost all the pension products are rigid in what you can do with your money at the end. Under current laws, you can withdraw only one-third of your accumulated money tax-free. Also, it’s compulsory to buy annuity for the remaining money.


Pension Plans

Handy Tips

Start at an early age and choose a plan that assures you of a guaranteed pension for life (or at least up to 80–85 years of age),

Choose a plan that levies least of charges so as to ensure that the fund value/net asset value (NAV) is not eroded.

Go for that plan which offers minimum premium payment so that default does not occur.

Vesting age

It is the age at which you choose to start receiving pension (normally after reaching superannuation or the term as chosen by you).

Annuity

It is the regular monthly pension payable to you after you cross the vesting age.

Accumulation period

This is the period when you pay premiums to accumulate funds for retirement.

Sum assured

This is the amount that the nominee receives in the event of death of the insured during the accumulation period.

Participating plans

These plans give a share of the insurer’s profit to policyholders. This share is not fixed and depends on the financial performance of the company.

Premium allocation charge

This is the charge collected from the premium that you deposit and is deducted on yearly basis. This enables the company to invest the balance of the premium in units so that you can get better returns (subject to market conditions).

Fund management charge

This is a charge that insurance companies levy on daily basis. It is charged to you as a percentage

Know Your Terms and Terminologies

of fund value on yearly rests. This charge is for providing the services of the fund manager who will manage your portfolio in allocating your money into various funds as per market forces. This is charged before arriving at the net asset value (NAV) of your investment and that can change daily, albeit marginally, subject to market play. All insurance companies levy this charge.

Investment guarantee charge

This is a charge levied by most of the insurance companies for rendering the service of guaranteeing returns (say 110 per cent or 105 per cent) on the total premium paid by you.

Mortality charge

This is a charge levied by insurance companies to provide you death cover in the policy. This is collected out of fund value/against units accruing to you upon growth of the fund.

Policy administration charge

This is a charge levied on monthly basis from your fund value/by redeeming against accumulated units for the service rendered. All insurance companies charge this fee; only the rates vary. As per guidelines issued by Insurance Regulatory and Development Authority of India (IRDA), no insurance company is permitted to charge more than Rs 6,000 per year on this account.

34 •

We chose eight life insurance companies based on consumer feedback, product structure and availability of full information in the public domain (including official websites and brochures). The parameters on which we have compared them include maximum and minimum vesting age, maximum and minimum policy term, minimum premium, maximum and minimum entry age, and charges for premium allocation, policy administration, fund management, investment guarantee, etc. We gave the highest weightage (15 points) to consumer feedback, which helped in determining product and service quality as well as the most important and beneficial variables. These variables have a direct bearing on the product structure.

CV RECOMMENDATIONS

Best Buy

Edelweiss Tokio Life Insurance (Easy Pension)

Good Buy

Bajaj Allianz Life Insurance (Retire Rich)

Fair Buy

Birla Sun Life Insurance (Empower Pension)

PENSION PLANS: A COMPARATIVE CHART

CV Weightage (Criteria)

Points: 100Parameters

Reliance Life HDFC Life Max LifeEdelweiss Tokio Life

ICICI Prudential Life

Bajaj Allianz Life

Birla Sun Life SBI Life

Smart PensionPension Super

PlusForever Young

PensionEasy Pension

Easy Retirement

Retire RichEmpower Pension

Retire Smart

7 Entry age – minimum (in years) 18 (7) 35 (2) 30 (3) 18 (7) 35 (2) 30 (3) 25 (5) 30 (3)

10 Entry age – maximum (in years) 65 (5) 65 (5) 65 (5) 75 (10) 70 (10) 73 (10) 70 (10) 70 (10)

10 Minimum premium (Yearly in Rs.) 36,000 (2) 24,000 (5) 25,000 (5) 15,000 (10) 48,000 (2) 15,000 (10) 18,000 (10) 24,000 (5)

5 Minimum policy term (in years) 15 (1) 10 (3) 10 (3) 10 (3) 10 (3) 7 (5) 5 (5) 10 (3)

10 Maximum policy term (in years) 30 (3) 20 (1) 45 (10) 67 (10) 30 (3) 30 (3) 30 (3) 35 (5)

5 Minimum vesting age (in years) 45 (3) 55 (1) 50 (1) 45 (3) 45 (3) 37 (5) 30 (5) 40 (3)

10 Maximum vesting age (in years) 75 (5) 75 (5) 75 (5) 85 (10) 80 (10) 80 (10) 80 (10) 80 (10)

5 Premium allocation charge (yearly, in %) 3.00 (2) 2.50 (2) 1.25 (5) 2.00 (5) 2.00 (5) 5.70 (2) 4.00 (2) 2.50 (2)

10 Policy administration charge (monthly, in %) Rs 480 (4) 0.47 (7) 0.36 (10) 2.50 (4) 0.60 (7) 1.70 (4) 5.00 (4) Rs 540 (4)

5 Fund management charge (yearly, in %) 0.50 (5) NS (0) 1.25 (1) 1.25 (1) 1.35 (1) 0.50 (5) 1.00 (3) 0.25 (5)

5 Investment guarantee charge (yearly, in %) NS (0) 0.40 (1) NS (0) 0.10 (5) NS (0) 0.25 (3) 0.25 (3) 0.25 (3)

3 Mortality charge (monthly) Yes (1) Yes (1) Yes (1) Yes (1) NS (0) Yes (1) NS (0) Nil (3)

15 Customer feedback 6 5 7 7 8 9 7 7

Total 44 38 56 76 54 70 67 63

Notes:a) NS: Not specifiedb) Information given here has been sourced from websites, brochures and customer care.c) Premium is dependent on individual age, health profile, benefits opted for, and period of insurance.

BFSI


PENSION PLANS: A COMPARATIVE CHART

CV Weightage (Criteria)

Points: 100Parameters

Reliance Life HDFC Life Max LifeEdelweiss Tokio Life

ICICI Prudential Life

Bajaj Allianz Life

Birla Sun Life SBI Life

Smart PensionPension Super

PlusForever Young

PensionEasy Pension

Easy Retirement

Retire RichEmpower Pension

Retire Smart

7 Entry age – minimum (in years) 18 (7) 35 (2) 30 (3) 18 (7) 35 (2) 30 (3) 25 (5) 30 (3)

10 Entry age – maximum (in years) 65 (5) 65 (5) 65 (5) 75 (10) 70 (10) 73 (10) 70 (10) 70 (10)

10 Minimum premium (Yearly in Rs.) 36,000 (2) 24,000 (5) 25,000 (5) 15,000 (10) 48,000 (2) 15,000 (10) 18,000 (10) 24,000 (5)

5 Minimum policy term (in years) 15 (1) 10 (3) 10 (3) 10 (3) 10 (3) 7 (5) 5 (5) 10 (3)

10 Maximum policy term (in years) 30 (3) 20 (1) 45 (10) 67 (10) 30 (3) 30 (3) 30 (3) 35 (5)

5 Minimum vesting age (in years) 45 (3) 55 (1) 50 (1) 45 (3) 45 (3) 37 (5) 30 (5) 40 (3)

10 Maximum vesting age (in years) 75 (5) 75 (5) 75 (5) 85 (10) 80 (10) 80 (10) 80 (10) 80 (10)

5 Premium allocation charge (yearly, in %) 3.00 (2) 2.50 (2) 1.25 (5) 2.00 (5) 2.00 (5) 5.70 (2) 4.00 (2) 2.50 (2)

10 Policy administration charge (monthly, in %) Rs 480 (4) 0.47 (7) 0.36 (10) 2.50 (4) 0.60 (7) 1.70 (4) 5.00 (4) Rs 540 (4)

5 Fund management charge (yearly, in %) 0.50 (5) NS (0) 1.25 (1) 1.25 (1) 1.35 (1) 0.50 (5) 1.00 (3) 0.25 (5)

5 Investment guarantee charge (yearly, in %) NS (0) 0.40 (1) NS (0) 0.10 (5) NS (0) 0.25 (3) 0.25 (3) 0.25 (3)

3 Mortality charge (monthly) Yes (1) Yes (1) Yes (1) Yes (1) NS (0) Yes (1) NS (0) Nil (3)

15 Customer feedback 6 5 7 7 8 9 7 7

Total 44 38 56 76 54 70 67 63

d) For this study, we have selected only retirement pension plans (unit-linked).e) These plans do not specify sum insured (assured) as these are not endowment plans.f) We have not selected endowment and non-linked retirement pension plans for this study.

Pension Plans

Increasing Interest Rates on Your savings Account

the advent of payment banks, small finance banks and new private banks are challenging the very concept of offering interest rates for flexible savings account deposits. Banks are jostling to offer higher interest rates. these rates look even more attractive because fixed deposit (FD) interest rates have dropped significantly in recent times. In such a scenario, you may feel tempted to open accounts in banks offering higher rates. What aspects must you keep in mind, though? Clearly, apart from the interest rates, you need to factor in various limitations of specific banks.

As we all know, for a long time banks typically offered 4 per cent rate of interest (RoI) per annum (p.a.) on savings accounts. Subsequently, for a considerable period, the rates

were brought down to 3.5 per cent rate p.a. (See accompanying table.) It was again restored to 4 per cent rate, which is the minimum rate offered by banks. The 4 per cent as the minimum rate is prescribed by Reserve Bank of India (RBI). There is no higher cap, giving elbow room to banks.

36 •

BFSI Guide


Interest Rates on Your Savings Account

With globalisation and with the coming of more private-owned banks in the commercial banking system, it is only to be expected that banks will opt for aggressive selling of SB interest rates so as to attract low-cost deposits – such deposits come cheap to their coffers as they have a larger band (spread between what they earn and what they pay). As mentioned earlier, in the last couple of months, fixed deposit rates of banks have dropped significantly – some rates are now lower than even small savings rates. This makes certain banks’ savings rates more attractive than their own FD rates or in comparison to other banks’ rates.

Effective from Rate per Annum (%) Effective Rate per Annum (%)

March 1, 1978 4.5 3.8

September 13, 1979 5.0 4.3

April 24, 1992 6.0 5.1

July 1, 1993 5.0 4.3

November 1, 1994 4.5 3.8

April 1, 2000 4.0 3.4

March 2, 2003 3.5 3.0

April 1, 2010 3.5 3.5*

May 3, 2011 4.0 4.0*

Courtesy: IIT Bombay Technical Report (May 2011)*Due to change in the method of calculation – from the maximum monthly product method between the 10th and the last day of each month, to the daily-balance method now in force

(You may have seen the giant red-blue signage/banners of a private bank that went aggressive with their slogan ‘KONA 6’ [indicating SB interest @ 6% per annum] all over Delhi.)

In this competitive environment, some banks are offering interest rates as high as 7.25 per cent for deposits of more than Rs 1 lakh in savings accounts (@ 7.25% for >1–10 lakh). Some nationalised banks are also quoting a higher rate for large deposits (usually of Rs 15.00 lakh and above). One small finance bank even went to the extreme of offering 9 per cent p.a. for a specific period as part of their inaugural scheme.

38 •

Who Is Offering What (Rate in % per annum)**

SB Rate up to Rs 100,000+ SB Rate more than Rs 100,000

Nationalised Banks 4.00 4.00

Airtel Payments Bank 7.25 7.25

Bandhan Bank 4.25 5.00

IDFC Bank 4.00 4.00

Suryoday Small Finance Bank 6.25 7.25

Equitas Small Finance Bank 6.00 6.50

Utkarsh Small Finance Bank 6.00 6.00

Ujjivan Small Finance Bank 4.00 4.00

Capital Small Finance Bank 4.00 4.00

IndusInd Bank 4.00 5.00

Yes Bank 6.00 6.00

Kotak Mahindra Bank 6.00 6.00

RBL Bank 5.50 6.00

Source: livemint.com, Mint Research**Calculated on daily basis on the end-of-day balance and paid quarterly+There is some minimum amount that is required to be deposited to earn this interest

BFSI Guide


Thus, if you have Rs 10,000 in your savings account which you leave untouched for a year, at the rate of 7.25 per cent p.a., the interest amounts to Rs 1.98 per day (Rs 1.09 per day @ 4 per cent RoI). In a way, then, the choice before you is clear. If you can afford not to touch your money for some time or do not allow the eligible amount to come down at any time in spite of withdrawals from that account, then you can earn maximum savings interest. And you need not panic about tax-related aspects. According to Income Tax Act, deduction under section 80TTA (as tax exemption) is allowed on interest from savings account with a maximum of Rs 10,000.00 per assessment year (applicable to assessment years 2017–18 and 2018–19). This deduction is available only to individuals and Hindu undivided family (HUF).

Finally, be wary of banks that offer high savings interest rate for a limited time and those having account closing fees. Also, note that some banks may offer a higher interest rate for only one quarter in order to attract customers.

In a circular issued in March 2016, Reserve Bank asked banks to pay interest on savings account on quarterly basis or shorter duration. Prior to that, the interest was credited in savings bank account on half-yearly basis. Interest rate on savings bank account is calculated on daily basis since 1 April 2010.

In 2011, the central bank had decided to give freedom to commercial banks to fix savings bank deposit rates. While giving banks this freedom, RBI had said a uniform rate would have to be offered on deposits of up to Rs 1 lakh. On higher amounts, banks were allowed to offer differential rates to depositors.

FOrm IV (See rule 8)

Statement about ownership and other particulars about news paper cONSUmEr VOIcE1. Place of Publication: E-34, East of Kailash,

New Delhi-1100652. Periodicity of Publication: monthly3. Printer’s Name: Prof. Sri ram Khanna Nationality: Indiana) Whether citizen of India: Yesb) If a foreigner, the country of origin: Na E-34, East of Kailash,

New Delhi-1100654. Publisher’s Name: Prof. Sri ram Khanna Nationality: Indiana) Whether citizen of India: Yesb) If a foreigner, the country of origin: Na address: E-34, East of Kailash, New

Delhi-110065

5. Editor’s Name: Padma Pegu Nationality: Indiana) Whether citizen of India: Yes Address: a-71, 2nd Floor, c.r. Park,

New Delhi-1100196. Names and addresses of individuals who own

the magazine and partners or shareholders holding more than one percent of total capital:

VOIcE SOcIETY E-45, East of Kailash, New Delhi-110065 I, Prof. Sri ram Khanna hereby declare that

the particulars given above are true to the best of my knowledge and belief.

Sd/ Prof. Sri ram Khanna Signature of Publisher Date: 28 February 2017

Interest Rates on Your Savings Account

40 •

BFSI Guide

Readers are aware that the Consumer Voice BFSI Desk has been bringing out articles on banking, financial services and insurance matters every month. We are now extending this domain to cover advice, guidance and assistance to consumers on financial matters.

You may approach us with any financial grievance that you have or if you need advice on investment options/financial planning.

We have put up a dedicated landline for easy access to us (011-47331004; ask for Subas Tiwari at BFSI Desk). You may also email us at [email protected]

Consumer Voice Finance Helpline

TIER I

NON-MEMBERSLODGING YOUR GRIEVANCEALONGWITH INITIALCONSULTATION FEE (One-time)(TO BE PAID EITHER BY CASH OR NEFTIN FAVOUR OF 'VOICE SOCIETY')(consumers would then be called to present their complaint/grievance with documentary evidence)

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Rs 500

TIER II

RENDERING QUALITY FINANCIAL ADVICE(enabling/facilitating early resolution of) consumer grievance)(A) RESULTING IN GRIEVANCE

Rs 2,000

RENDERING QUALITY FINANCIAL ADVICE(enabling/facilitating early resolution of) consumer grievance)

Rs 1,000

MITIGATION WITHOUT ANYFINANCIAL BENEFIT ACCRUING TO CONSUMER(B) RESULTING IN GRIEVANCE MITIGATION WITH FINANCIAL BENEFIT ACCRUING TO CONSUMER

Rs 3,000 (a

minimum of Rs 3,000 or 15% of financial benefit)

(A) RESULTING IN GRIEVANCE MITIGATION

WITHOUT ANY FINANCIAL BENEFIT ACCRUING TO CONSUMER)

Rs 3,000 (a minimum of Rs 3,000 or 15% of financial benefit)

TIER III

RENDERING FINANCIAL ADVICE ON INVESTMENT

Rs 10,000

RENDERING FINANCIAL ADVICE ON INVESTMENT

Rs 10,000AVENUES/OPTIONS AVENUES/OPTIONS

(resulting in consumer being able to maximise his interest income/dividend income)

(resulting in consumer being able to maximise his interest income/dividend income)

QUALITY FINANCIAL ADVICE – PAY FEE & BE FREE

(MANAGED BY BFSI DESK)

40 •


Legal Matters

one Has only 45 Days to Revert to Consumer Forums’ notice

“Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is an organized conspiracy to oppress, rob and degrade them, neither persons nor property will be safe.”

~ Frederick Douglass

one of the many reasons that delay closure of cases in India’s courts is that defending parties often delay in reverting and filing their replies in court on time on one pretext or another. It has been observed that big companies generally have a battery of lawyers and legal firms on their rolls who adopt murky tactics in order to delay the filing of their replies to consumer forums. such delaying tactics may not be entertained any longer, in light of the supreme Court’s new ruling.

Dr Prem Lata, Consumer AwakeningFormer Member, CDRF-Delhi

However, the Supreme Court has now ruled that no party will get more than 45 days for replying to a complaint in a consumer forum. The court has emphasised that this period cannot be

extended under any circumstances. Underlining that Consumer Protection Act, 1986, aims at providing expeditious relief to consumers against unfair trade practices and deficiency in services, a three-judge

bench led by Justice Anil R Dave has held that no party shall henceforth be given more than 45 days to adduce explanation to a complaint. If a party fails to do so, the right to submit a written statement shall be closed and the case may be decided straightaway in the complainant’s favour.

The bench, also comprising justices Vikramjit Sen and PC Ghose, elucidated the legal position

42 •

after a two-judge bench came across a few conflicting judgements of the apex court and referred the matter to the larger bench in November 2013 for clarification on the point of law. Interpreting Section 13 (2) (a) of the Act, the bench said that this provision had to be given a strict interpretation in view of the legislative mandate, which wanted a speedy disposal of these cases, preferably within six months.

On receiving a complaint, the court said, the opposite party is required to be given notice, directing him to give his version within 30 days. This time can be extended by another 15 days. This extension may be granted by a district forum or the state or national consumer commission. The bench concurred with the view of a coordinate bench in 2002, noting that it had given the correct interpretation of the law that a limitation period of 45 days shall apply in consumer cases for filing replies to complaints.

Landmark Case

The question of extending the timeline to file a reply came before the Supreme Court in the case of New India Assurance Company versus Hilli Multipurpose Cold Storage. The judgement on this case was announced in December 2015 by a bench comprising judges Anil R Dave, J Vikramajit Sen and Pinaki Chandra Ghose.

The bench conferred on the period within which the opponent should reply with their version to the district forum in pursuance of a complaint against them under Section 12 of the Consumer Protection Act. It is to be noted that if the complaint is admitted

The Clause in the Act

13. Procedure on admission of complaint:

(1) …………………

(2) The District Forum shall, if the complaint admitted by it under section 12 ……

(a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as the case may be.

under Section 12 of the Act, a copy of the same complaint is to be served upon the opposite party. And as per provisions of Section 13 of the Act, the opposite party has to give their version of the case within a period of 30 days from the date of receipt of the copy of the complaint.

The Act has a provision in Section 13 (2) (a) that allows a district forum to extend the period. However, the extended timeline cannot go beyond 15 days. Hence, the opposite party does not have more than 45 days for filing their version. The relevant section of the Act reads as under:

Thus, upon plain reading of the aforestated section, one can find that the opposite party is given 30 days’ time for giving his version and the period for filing, or giving the version can be extended by the District Forum, but the extension should not exceed 15 days. Thus, an upper cap of 45 days has been imposed by the Act for filing version of the opposite party.

Legal Matters


Another SC Judgement that Supports the Act

One judgement by the Supreme Court with regard to Section 13 (2) (a) was given by a three-member bench in the case of Dr JJ Merchant and Others versus Shrinath Chaturvedi in 2002. The apex court in this case had stated that Section 13 (2) (a) is a ‘legislative mandate’ under which the timeline of 45 days for submitting the written statement or the version of the second party could not be extended, and this mandate had to be adhered to by a consumer forum.

SC Judgements that Confused Us

Although the Act quite clearly states that the maximum period allowed to an opposite party to file its reply is 45 days, there is however a contradicting version of the Act and that, ironically, is from the Supreme Court.

In the case of Topline Shoes Limited versus Corporation Bank, a two-member bench had held that Section 13 (2) (a) was ‘directionary in nature’, which the consumer forums were ordinarily supposed to apply. In other words, the forum or the commission has to consider all facts and circumstances of each case and exercise their discretion in deciding whether the delay in filing a reply beyond the period of 45 days can be condoned. Hence, the right to condone the delay in filing reply beyond 45 days is given to consumer forums.

Interestingly, this judgement of the Supreme Court was approved by another three-member bench of the Supreme Court in the 2005 case of Kailash versus Nanhku and Others. The bench observed that the opinion of the court regarding Section 13 (2) (a) in JJ Merchant’s case was a mere obiter – that is, something made or said in passing and hence not to be taken as ‘a pronouncement on law’. Consequently, what was

a legislative mandate was interpreted to be merely directionary by the Supreme Court. This statement left a gap that allowed the opposite party to get their timeline extended with the consent of the forum.

Clearing the Confusion – What You May Know

The latest judgement of the Supreme Court supersedes all its previous judgements that could be contradictory in nature. Moreover, the judgement made by a bench with a larger strength holds more weight in the court of law – however, this is a thumb rule, not a law. Hence, the judgement made by the apex court in December 2015 in New India Assurance Company versus Hilli Multipurpose Cold Storage is the final verdict. The judgement states that the opinion of the three-judge bench of the Supreme Court in JJ Merchant’s case should prevail. The statement of the bench states that forums/commission under the Consumer Protection Act “can grant a further period of only 15 days to the opposite party for filing his version or reply and not beyond that.” It is, therefore, now clear that the total time for filing of reply cannot exceed 45 days.

Advice to Consumers

The Supreme Court’s December 2015 judgement was made in order to help consumers who had to wait for months to even get their hearing started because the opposite parties took their own time to file their replies.

At the backdrop were the consumer matters related especially to real-estate developers who often delayed their replies just like they delayed allotments of flats to their consumers. It is advised that if you as a consumer have already filed a complaint or are contemplating one, keep a track of days taken by the opposition to file their revert. In case they take more than 45 days, bring it to the notice of the forum and request them to make a decision in your favour as per the law.

Revert to Consumer Forums’ Notice

44 •

Consumer courts are obligated to function on the principle of natural justice. the basic concept of Consumer Protection Act—fundamentally a welfare act—is grounded on consumer welfare and the objective is to provide inexpensive, speedy and summary redressal of consumer disputes. Yet, if we look at the functioning of the country’s consumer forums, there are many a loopholes. In many instances, retired judges are appointed to the forums and, knowing or unknowingly, they follow the same routine as in the civil courts. the casualty here is the consumer, who ends up getting the short end of the stick. Here we take a look at the reasons for undue delay in the consumer forums.

Dr Prem Lata, Consumer AwakeningFormer Member, CDRF-Delhi

Preliminary objections not settled firstA special provision of preliminary hearing was incorporated in the Act through a 2002 amendment, giving 21 one days to the forum to decide whether a case was fit for admission or not. However, even now consumer forums admit a case without considering the validity of jurisdiction. The case goes on until it is dismissed for want of jurisdiction. Consumer is taken unawares when he finds that the case has come back to the starting point.

Delays in Consumer Forumsthe reasons are many

No ex-parte order in spite of opposite party being absentAt times, the opposite party remains absent for a number of dates. In such circumstances the forum should proceed ex-parte after one or two dates, but the matter gets adjourned without reason.

Number of notices when opposite party does not appear As per the procedure, if a notice does not come back

Legal Matters


Delays in Consumer Forums

unserved, it is presumed to be notice served. At the most, one additional dasti notice can be given (dasti service, in a legal context, means service of summons by the petitioner/plaintiff on the respondent/defendant, by a specific order by the court and not by registered post or through the process server of the court).

Yet, consumer forums are known to send notice many times, delaying the entire process.

Adjournments with no reasons Summary procedure under Consumer Protection Act provides no adjournments without noting the reasons for adjournment, and that too in special cases. In the forums, though, it is a normal practice to adjourn the matter for two to three dates without noting the reason.

Notice again after order is madeA consumer forum does not have the jurisdiction to review its own order. Only some clerical mistake is allowed to be rectified by way of a corrigendum—not by amendment. However, at times the forum issues notice to the parties after the order has been pronounced, pointing out some mistake, and re-opens the case.

Prolonged expert opinion process It is the forum that appoints an expert agency, sends relevant documents/vehicle for inspection, fixing a particular time and place, directing the parties

to follow the process in prescribed time, and so on. More often than not, the process of obtaining expert opinion is a prolonged one.

Appearance of proxy Because of it being a summary procedure, any given case needs to be disposed of within minimum time. However, appearance of proxy counsels, who may not know the case wholly or who may simply seek adjournment, is not discouraged.

Order signed by member not present at the time of argument As per the law, only a member present at the time of argument can sign the order. However, there are instances wherein a member not present at the time of argument signs the order. Such an order then becomes easy to challenge before a higher court, on the basis that the member who signed it did not have the authority or jurisdiction to do so.

Senior citizens not secured in prolonged high-stake cases A lot of emphasis is placed on securing the interests of senior citizens but high-stake cases, especially relating to real estate and insurance, are more or less protracted affairs. Many of them may simply give up the fight in the face of such challenges.

46 •

Be Informed

service Charge Is an Unfair trade Practice

Here in India, people are not much aware of their rights and get easily duped by service providers. In order to curb this, the

government is taking several initiatives to protect the interests of consumers by issuing directions to various service providers.

The Consumer Protection Act, 1986, stipulates that a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice is to be treated as an unfair trade practice. And if a consumer feels that a service provider is engaging in an unfair trade practice, he/she can make a complaint against the same to the appropriate consumer forum established under the Act.

Consider the service charge that we pay. In many cases, consumers are forced to pay ‘service charge’ in a restaurant even though the service was poor or they did not like the service. A tip has traditionally been a voluntary payment to the waiter for giving good service. Convention makes this tip about 10 per cent of the total bill. Over the years, restaurants and hotels began to embed this tip as a ‘service charge’ in the bill, making it a mandatory payment. Their logic seems to be that it is not just the person serving you, but also the backroom staff who needs to be rewarded.

Following several complaints from consumers that they are being forced to pay service charge in the range of 5 to 20 per cent, in lieu of tips, irrespective of the kind of service provided to them, in January 2017 the Ministry of Consumer Affairs, Food & Public Distribution made a clarification regarding levy of service charges by hotels and restaurants. The ministry said that service charges should be on the discretion of the consumer and that it could not be a mandatory payment. In effect, a consumer can

now refuse to pay the service charge if he/she is not satisfied with their dining experience. In accordance with the act, the department of consumer affairs called for clarification from the Hotel Association of India, which in response stated that the service charge was completely discretionary and, therefore, it was deemed to be accepted voluntarily. In addition, the central government has asked the state governments “to advise the hotels/restaurants to disseminate information through display at the appropriate place in the hotels/restaurants that the ‘service charges’ are discretionary/voluntary and a consumer dissatisfied with the services can have it waived off.” The government also directed the association to show that the service charges levied on consumers are actually passed on to the hotel/restaurant employees/staffs.

As a consequence of this notification, paying service charges has been made optional and is based on the discretion of the consumer. So, pay only if you are satisfied with the service provided to you and get the service charge waived off if you are not satisfied with the service. Further, if you are satisfied with the service provided and want to pay service charge, then it should be around 10 per cent of the total bill amount.

– Pooja Wason & Ankur Saha, Legal Desk, Consumer Voice

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