Tyre dealers to move tribunal against CCI ruling
Tyre dealers in the country are challenging an order from judgement passed by the Competition Commission of India at the Competition Appelate Tribunal.
In a majority judgement, which was passed on October 30, 2012, the CCI has said that tyre manufacturers and the Automotive Tyre Manufacturers Association canne be held guilty for restrictive trade practices under Section 3 of the Competition Act for want of sufficient evidence.
The All India Tyre Dealers'Federation (AITDF) has indicated that it will file an appeal with the Competition Commission Appellate Tribunal challenging the judgment. The industry body said that it will appeal the judgment after considering orders of the majority and minority members of CCI.
The AITDF is appealing the decision because “tyre dealers and consumers are convinced that domestic tyre manufacturers indulge in price rigging and other trade malpractices,” said SP Singh, convenor, AITDF.
AITDF agrees with the minority judgment which calls for 10% of the total receipts of ATMA for year 2009-10 as penalty and asked five tyre manufacturers to "cease and desist" from indulging in restrictive trade practices. The investigations were conducted after AITDF urged the ministry of corporate affairs, Government of India in December 2007 to probe cartels in tyre and transport industry.