CCI imposes Rs 1650 cr penalty on Apollo Tyre, Ceat, MRF, JK Tyre and Birla Tyre for anti-competitive practices

In a latest development, Competition Commission of India (CCI) has imposed penalty of approximately Rs 1650 crores on five tyre companies.

The penalty has been imposed on five companies - Apollo Tyre, Ceat, MRF, JK Tyre and Birla Tyre, as Zee Business reporter Tarun Sharma reported.

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CCI has imposed a penalty of Rs 425 crore on Apollo Tyre. MRF has been slapped with a penalty of Rs 309 crore. Penalties of Rs 252 crore and Rs 309 crore have been imposed on CEAT and JK Tyre, respectively. A penalty of Rs 178 crore has been imposed on Birla Tyre.

टायर कंपनियों पर CCI ने जुर्माना लगाया

अपोलो, MRF, J K, बिरला, सीएट टायर पर जुर्माना लगा
टायर कंपनियों पर CCI ने ₹1650 Cr का जुर्माना लगाया

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The CCI has been investigating this case since 2018 but the tyre companies with its association challenged the case in Chennai High Court. However, last month, Chennai High Court allowed CCI to pass its order when the latter submitted its report in a closed envelope.

With the passing of this order, CCI has imposed fines on these tyre companies of the country.

The tyre companies have only option left - challenging the order in Supreme Court. However, we have seen earlier CCI has been on this investigation for quite some time and the order was passed only after the approval of Madras High Court. In that case, the side of the tyre companies is also not looking strong.

The case against the tyre companies was initiated by the Ministry of Corporate Affairs when it had stated that five home tyre producer which account for 90 per cent of the market share.