26 C
Monday, January 30, 2023
HomeAsian NewsNCLAT units apart ₹ 1,788 crore penalty imposed by CCI on tyre...

Related Stories

NCLAT units apart ₹ 1,788 crore penalty imposed by CCI on tyre firms


- Advertisement -

The Nationwide Firm Legislation Appellate Tribunal (NCLAT) has put aside the ₹1,788-crore penalty imposed by the Competitors Fee of India (CCI) on sure tyre firms for indulging in cartelisation. 

A Division Bench of NCLAT comprising Justice Rakesh Kumar, Member (judicial) and Ashok Kumar Mishra, Member (Technical) on Thursday pronounced its order on a batch of appeals most well-liked by tyre firms — Apollo Tyres, MRF, CEAT, JK Tyre and Birla Tyres— and their affiliation i.e. Automotive Tyre Producers Affiliation (ATMA) in opposition to CCI order.

The  Appellate Tribunal put aside the penalties and remanded the matter again to CCI for recent consideration. Earlier, after marathon hearings within the matter, NCLAT had in September reserved its order  within the practically decade-old matter.

 The CCI had in February this yr imposed a cumulative penalty of ₹ 1,788 crore on these 5 tyre firms and ATMA. These tyre firms had appealed in opposition to the order. 

- Advertisement -

 The tyre matter arose out of a illustration made in 2013 by the All India Tyre Sellers Federation (AITDF) to the Company Affairs Ministry, which had handed it on to the CCI. 

 AITDF had alleged that 5 main tyre firms — accounting for 90 per cent of tyre trade manufacturing — had been participating in “value parallelism” within the worthwhile alternative market.

 The competitors watchdog had, in August 2018, handed a remaining order in opposition to the 5 tyre firms and their affiliation. 

The CCI had famous that the tyre producers had exchanged value delicate information amongst themselves via the platform of their affiliation and had taken collective choices on tyre costs. 

See also  Local weather-smart options firm Ecozen raises $25 mn

CCI had held the 5 producers and ATMA responsible of contravention of the provisions of Part 3 of Competitors Act, which prohibit anti-competitive agreements, together with cartels, throughout 2011-12.

- Advertisement -

The CCI’s order was appealed earlier than Madras Excessive Court docket by MRF and the HC had, in January this yr, dismissed the attraction. 

The SC, in January this yr, dismissed the SLPs filed earlier than the apex court docket. Following this, the CCI had, In February, imposed cumulative penalty of ₹1,788 crore on the 5 tyre firms and ATMA. 


- Advertisement -


- Never miss a story with active notifications

- Browse for free from up to 5 devices at the same time

Latest News


Please enter your comment!
Please enter your name here