NCLAT stays order imposing ₹750 cr penalty on United Breweries
Premium- NCLAT has stayed the order passed by the CCI upon a condition of pre-deposit of 10% of the penalty amount imposed on the company.
The National Company Law Appellate Tribunal (NCLAT) has stayed Competition Commission of India (CCI)'s order imposing a penalty of ₹751.83 crore on United Breweries Ltd (UBL), the company informed the stock exchanges today.
NCLAT has stayed the order passed by the CCI upon a condition of pre-deposit of 10% of the penalty amount imposed on the company.
The company said it will comply with the directions and the said 10% amount will be deposited through a fixed deposit receipt within stipulated time as mentioned in the order.
In September, the CCI had imposed a penalty on United Breweries, Carlsberg India, All India Brewers' Association (AIBA) and 11 individuals after nearly four years of probe for alleged cartelization and anti-competitive practices.
United Breweries and other entities were been found to be "indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers' Association (AIBA)".
The final order was passed against United Breweries Ltd (UBL), SABMiller India Ltd, now renamed as Anheuser Busch InBev India Ltd (AB InBev), and Carlsberg India Private Ltd (CIPL), among other entities.
In its 231-page order, the CCI had also directed the companies, association and individuals to "cease and desist" from anti-competitive practices in the future.
The period of cartelisation was considered to be from 2009 to at least October 10, 2018, with Carlsberg India joining in from 2012 and AIBA serving as a platform for facilitating such cartelisation since 2013. All three beer companies were lesser penalty applicants before the regulator.
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UBL, which is now controlled by Dutch-based multinational Heineken, has approached the appellate tribunal NCLAT against the penalty imposed on the company by CCI. The NCLAT is the appellate authority over the CCI. It hears appeals against any direction issued or decision made or order passed by CCI.
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