New Delhi, June 15: The Competition Commission of India (CCI) issues order against Hyundai Motor India Limited (HMIL) for anti-competitive conduct imposes penalty of Rs. 87 crore for the anti-competitive conduct on Wednesday.
Ministry of Corporate Affairs said that HMIL to be in contravention of the provisions of the Competition Act, 2002 for imposing arrangements upon its dealers which resulted into Resale Price Maintenance in sale of passenger cars manufactured by it.
such arrangements also included monitoring of the maximum permissible discount levels through a Discount Control Mechanism. Further, HMIL was found to have contravened the provisions of the Act for mandating its dealers to use recommended lubricants and oils and penalising them for use of non-recommended lubricants and oils.
The final order has been passed on informations filed by the dealers of HMIL viz. Fx Enterprise Solutions India Pvt. Ltd. and St. Antony’s Cars Pvt. Ltd. Apart from issuing a cease and desist order against HMIL, CCI has imposed a penalty of Rs. 87 crore upon HMIL for the anti-competitive conduct.
The penalty has been levied at 0.3% of the average relevant turnover of HMIL of preceding three years. CCI noted in its order that for the purposes of determining the relevant turnover for the impugned infringement, revenue from sale of motor vehicles alone have been taken into account.