CCI probe: No HC relief for carmakers

Written by Kaushal shroff | New Delhi | Updated: Aug 14 2014, 06:54am hrs
In a setback to Maruti Suzuki in particular and carmakers in general, the Delhi High Court on Wednesday refused the companys plea seeking a stay on a probe being conducted by the investigation arm of the competition watchdog. The probe is in connection with the allegations levelled against a number of carmakers that they were abusing their dominant market position by restricting sale of car spare parts to their authorised dealers only.

The Madras High Court, on June 30, passed an order on a plea filed by Nissan Motors directing that status quo should be maintained for six weeks in respect of the probe and had granted the carmakers the liberty to file an appeal in the Competition Appellate Tribunal (Compat) for relief.

On Wednesday, Maruti told the Delhi HC that the June order was to be vacated on August 8 and that the carmakers are statutorily barred from approaching the Compat in appeal. Consequently, Maruti had approached the High Court seeking relief in the form of a stay on the probe. However, the court denied the company's plea and put up the matter for further hearing in January.

According to the data provided by Automotive Component Manufacturers Associations for 2011, the service and spare parts industry has been valued at Rs 27,000 crore, with the passenger car market accounting for R6,700 crore alone.