New Delhi: Hyundai Motor India has received reprieve from fair trade regulator Competition Commission of India's (CCI) previous order- a penalty of Rs 87 crores.
The National Company Law Tribunal on Wednesday ordered the CCI to set aside a fine on Hyundai.
A three-member bench of the National Company Law Appellate Tribunal (NCLAT) headed by Chairman Justice S J Mukhopadhaya found CCI's order against Hyundai Motor was "not based on any specific evidence".
The NCLAT said, "has been passed merely on the basis of the opinion of DG (probe arm of CCI). The DG, as well as CCI, also failed to decide relevant geographic market as required... The finding is against the law laid down by the Supreme Court"
The NCLAT bench passed a 44 page order.
"In view of such infirmity, we have no other option but to set aside the impugned order dated 14 June, 2017. It is accordingly set aside. Hyundai Motor will be entitled to refund of the amount, if any, deposited pursuant to the interim order dated 18 July, 2017," it said.
The competition commission of India in June last year imposed a fine of Rs 87 crore for allegedly forcing dealers to procure spare parts, accessories, and other requirements directly from Hyundai India or vendors approved by it.
The CCI back then noted, "Such conduct pertains to and emanates out of the sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from the sale of motor vehicles alone has to be taken into account."
Hyundai challenged the CCI order in an NCLAT court, an appellate authority.
The NCLAT has asked CCI to refund penalty amount, if any, deposited by Hyundai.
With Agency Inputs