Automakers come under CCI scanner | india | Hindustan Times
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Automakers come under CCI scanner

india Updated: Aug 12, 2013 02:21 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Fair-trade regulator Competition Commission of India (CCI), which is examining whether the country's automobile majors have indulged in any unfair practice by selling spare parts only at their authorised showrooms and giving little flexibility to customers, would give its verdict in the next three to four weeks.

"We are working on it and should be ready with the verdict in the next three to four weeks," Ashok Chawla, chairman, CCI, told HT.

If found guilty, automobile majors could be fined a maximum of 10% of the annual turnover under the present norms. "(If CCI finds discrepancy in pricing) it could be a huge jolt for the auto companies, which are already facing the heat of the slowdown," said an industry insider who did not wish to be identified.

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In October, 2012, the anti-trust body sent show-cause notices to as many as 17 automakers to examine if these companies have indulged in unfair practices and abused their dominant position by selling spare parts only through their authorised dealers. Affected consumers ultimately had to pay a higher price.

Sources said all major auto companies are under the scanner though no particular names have been disclosed.