CCI charges Rs 1,788 cr penalty on 5 tyre makers for cartelisation
ROADS & HIGHWAYS

CCI charges Rs 1,788 cr penalty on 5 tyre makers for cartelisation

Fair trade regulator Competition Commission of India (CCI) has inflicted a penalty of more than Rs 1,788 crore on five tyre firms and their Association Automotive Tyre Manufacturers Association (ATMA) for indulging in alleged cartelisation.

The five tyre firms comprise MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd and Birla Tyres Ltd. The Commission inflicted penalties of Rs 622.09 crore on MRF Ltd, Rs 425.53 crore on Apollo Tyres, Rs 309.95 crore on JK Tyre, Rs 252.16 crore on CEAT Ltd and Rs 178.33 crore on Birla Tyres, besides passing a cease and desist order. Additionally, a penalty of Rs 0.084 crore was also charged on ATMA. ATMA was ordered to disengage and disassociate itself from collecting wholesale and retail costs via the member tyre firms or otherwise.

The Commission noted that the tyre producers had exchanged price-sensitive data amongst them via the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the costs of tyres.

The Commission also found that ATMA collected and compiled data relating to company-wise and segment-wise information (both monthly and cumulative) on production, domestic sales and export of tyres on a real-time basis.Therefore, the Commission stated that the sharing of such sensitive data made coordination easier amongst the tyre firms.

The fair trade regulator in a release told the media that CCI had passed a final order dated 31.08.2018 against five Tyre firms namely MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd, Birla Tyres Ltd and their association i.e. Automotive Tyre Manufacturers Association (ATMA) for indulging in cartelisation by acting in concert to raise the costs of cross-ply or bias tyres variants sold by each of them in the replacement market and to limit and manage production and supply in the said market, thereby violating the conditions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act, 2002.

Image Source

Also read: CEAT to double its business in Europe in next 2-3 years

Fair trade regulator Competition Commission of India (CCI) has inflicted a penalty of more than Rs 1,788 crore on five tyre firms and their Association Automotive Tyre Manufacturers Association (ATMA) for indulging in alleged cartelisation. The five tyre firms comprise MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd and Birla Tyres Ltd. The Commission inflicted penalties of Rs 622.09 crore on MRF Ltd, Rs 425.53 crore on Apollo Tyres, Rs 309.95 crore on JK Tyre, Rs 252.16 crore on CEAT Ltd and Rs 178.33 crore on Birla Tyres, besides passing a cease and desist order. Additionally, a penalty of Rs 0.084 crore was also charged on ATMA. ATMA was ordered to disengage and disassociate itself from collecting wholesale and retail costs via the member tyre firms or otherwise. The Commission noted that the tyre producers had exchanged price-sensitive data amongst them via the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the costs of tyres. The Commission also found that ATMA collected and compiled data relating to company-wise and segment-wise information (both monthly and cumulative) on production, domestic sales and export of tyres on a real-time basis.Therefore, the Commission stated that the sharing of such sensitive data made coordination easier amongst the tyre firms. The fair trade regulator in a release told the media that CCI had passed a final order dated 31.08.2018 against five Tyre firms namely MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd, Birla Tyres Ltd and their association i.e. Automotive Tyre Manufacturers Association (ATMA) for indulging in cartelisation by acting in concert to raise the costs of cross-ply or bias tyres variants sold by each of them in the replacement market and to limit and manage production and supply in the said market, thereby violating the conditions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act, 2002. Image Source Also read: CEAT to double its business in Europe in next 2-3 years

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?