NCLAT set aside Rs 87 cr CCI penalty on Hyundai Motor
Published: Sep 20, 2018
By TIOLCORPLAWS News Service
NEW DELHI, SEPT 20, 2018: The NCLAT on Wednesday set aside an order of fair trade regulator Competition Commission of India (CCI) imposing a Rs 87 crore fine on Hyundai Motor India for allegedly adopting unfair business ways with respect to discounts for passenger cars. A three-member bench of the National Company Law Appellate Tribunal (NCLAT) headed by Chairman Justice S J Mukhopadhaya said the CCI order against Hyundai Motor was not based on any specific evidence. It had also asked the CCI to refund the penalty amount, if any, deposited by the country's second largest car maker.
CCI had in June last year imposed a fine of Rs 87 crore on Hyundai Motor for allegedly forcing dealers to procure spare parts, accessories and all other requirements, either directly from Hyundai Motor or through vendors approved by it.
The CCI further said the company's anti-competitive conduct includes putting in place arrangements that resulted in resale price maintenance by way of monitoring of maximum permissible discount level. That was done through discount control and penalty mechanisms for non-compliance of the discount scheme. It also said that such conduct pertains to and emanates out of sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from sale of motor vehicles alone has to be taken into account.