Delhi HC asks car makers to challenge CCI\'s Rs 2\,500 cr penalty order in NCLAT

Delhi HC asks car makers to challenge CCI's Rs 2,500 cr penalty order in NCLAT

Press Trust of India  |  New Delhi 

The on Wednesday told 14 makers, who were slapped with a total penalty of over Rs 2,500 crore by for alleged violation of trade norms, that they can challenge the decision in the (NCLAT).

A bench of Justices S Ravindra Bhat and Prateek Jalan passed the verdict on the pleas of the manufacturers which had moved the high court against the (CCI) order of August 2014.

The bench said the companies are at liberty to move to NCLAT for the relief within six weeks as the "remedy lies there".

On August 25, 2014, the had slapped a total penalty of Rs 2,545 crore on 14 manufacturers, including Honda, and FIAT, in after finding them guilty of violating trade norms in the spare parts and after-services market.

Apart from them, Maruti Suzuki, Nissan, Siel Cars India, Tata Motors, India, Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra and Mahindra, Mercedes-Benz India, Skoda Auto India and have also been penalised.

The order had come on a complaint filed in January 2011 against Honda, and In April 2011, the CCI extended its probe to other manufacturers it found were following a similar practice.

As per the CCI order, these car companies were found to have violated competition norms with respect to their agreements with local Original Equipment Suppliers (OESs) as well as in terms of pacts with authorised dealers.

The commission had also found that these companies, which were found to be dominant in the after-services markets for their respective brands, abused their dominant position affecting around two

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First Published: Wed, April 10 2019. 20:10 IST