Notices to Car Makers by CCI

The Competition Act, 2002 (the Act) mandates the Competition Commission of India (CCI) to impose penalties and/or issue cease and desist orders in appropriate cases of anti-competitive agreements and abuse of dominance. The CCI vide order dated 25.08.2014 in case No.3 of 2011 has imposed a penalty of ₹ 2544.65 crore along with cease and desist order on 14 car companies for contravention of the provisions of the Act. The order of the Commission has been challenged by the parties before Hon’ble High Court of Delhi/Competition Appellate Tribunal who have stayed the penalty imposed by the CCI.

Similar order of CCI dated 27.07.2015 imposing a penalty of ₹ 420.26 crore on a 15th car company, M/s Hyundai Motor India Ltd. has not been given effect to as per the directions of Hon’ble Madras High Court.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha.