India's government is suing Nestle for around $A135 million, claiming it caused damage to consumers through misleading ads about Maggi noodles.
In June, India's food safety regulator banned the hugely popular brand for containing unsafe levels of lead. Nestle has challenged this at the Bombay High Court, saying its products are safe.
The Food Safety and Standards Authority of India (FSSAI) had earlier said that tests found the instant noodles to contain "unsafe and hazardous" amounts of lead.
Nestle said other tests in US, Britain and Singapore have found its noodles are safe.
The High Court is expected to deliver its verdict on the ban soon.
The Indian government confirmed it's filed a suit with the country's top consumer court, National Consumer Disputes Redressal Commission (NCDRC), for 6,400 million rupees in damages from the Indian arm of the Swiss food giant.
"…the opponent (Nestle India) has deliberately misled the consumers of the quality, standard and accreditation/approval of Maggi noodles," the complaint filed said.
Maggi noodles were Nestle's fastest-selling food item in India, accounting for about 15 billion rupees ($313m) in sales annually.
The company has 80% of India's instant noodles market, but it's already destroyed 400m tonnes of Maggi products.
A Nestle spokesman in Delhi said the company would only be able to "provide substantive response" after it received an official notice about the complaint filed to the NCDRC.
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