NCLAT directs Maruti Suzuki to deposit 10% of fine of ₹200 cr in 3 weeks

A three-member bench of the NCLAT stayed the demand notice issued on October 27 to the carmaker with the condition to deposit 10 per cent of the fine amount.

The appellate tribunal NCLAT on Monday stayed the Rs 200 crore fine imposed by the Competition Commission on Maruti Suzuki but directed the carmaker to deposit 10 per cent of the total amount within three weeks.

The amount has to be deposited with the Registrar of the National Company Law Appellate Tribunal (NCLAT).

A three-member bench of the NCLAT stayed the demand notice issued on October 27 to the carmaker with the condition to deposit 10 per cent of the fine amount.

Passing an order, the appellate tribunal has also directed the petition filed by Maruti Suzuki India Limited (MSIL) against the regulator to be listed for “admission” on December 15.

On August 23, the Competition Commission of India (CCI) slapped a fine of Rs 200 crore on MSIL for restricting discounts offered by its dealers and preventing and closing the country’s largest carmaker from indulging in unfair business practices. instructed.

“Subject to payment of 10 per cent of the fine amount imposed by the respondent by way of fixed deposit receipt in favor of the Registrar, NCLAT within three weeks from the date of passing of this order,” the tribunal said in the order.

As per the CCI order, MSIL was found to be indulging in anti-competitive conduct of Resale Value Maintenance (RPM) in the passenger vehicle segment by way of implementing discount control policy vis–vis dealers.

MSIL had an agreement with its dealers under which the dealers were prohibited from giving discounts to customers in excess of the discounts fixed by it. In other words, the company had a rebate control policy and dealers who wanted to offer additional discounts mandatorily required prior approval of the company, the regulator had said.

During the proceedings before the NCLAT, senior advocate Abhishek Manu Singhvi, appearing for MSIL, questioned the “correctness, validity and validity” of the CCI’s order. He also said that the regulator has made a “serious error” in passing the impugned order by not defining the relevant market and has come to a wrong conclusion.

Additional Solicitor General Balbir Singh, appearing for CCI, submitted that MSIL has imposed penalty in respect of additional discounts given by the dealers.

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