From massive setback, Hyundai India moves to big relief in Rs 87 crore case
The NCLAT Wednesday set aside an order of fair trade regulator CCI imposing an Rs 87 crore fine on Hyundai Motor India for allegedly adopting unfair business ways with respect to discounts for passenger cars.
The NCLAT Wednesday set aside an order of fair trade regulator CCI imposing an 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".
"... Has been passed merely on the basis of opinion of DG (probe arm of CCI). The DG as well as CCI also failed to decide relevant geographic market as required... The finding is against the law laid down by the Supreme Court...," the NCLAT said.
It has also asked the Competition Commission of India (CCI) to refund the penalty amount, if any, deposited by the country's second largest car maker.
"In view of such infirmity, we have no other option but to set aside the impugned order dated June 14, 2017. It is accordingly set aside. Hyundai Motor will be entitled to refund of the amount, if any, deposited pursuant to the interim order dated July 18, 2017," it said.
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.
In a 44-page order, the regulator 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.
This was done through discount control and penalty mechanisms for non-compliance of the discount scheme, it added.
"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," CCI had noted.
This was challenged by Hyundai Motor India before NCLAT, which is an appellate authority over CCI.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:10 AM IST