Company chairperson Shakun J Mulchandani has recently written to the DCA secretary TS Krishnamurthy seeking his direct intervention in the process of investigation launched in end-1996.Significantly, the investigations initiated by the DGI&R has already culminated in petition before the sessions court in Delhi for prosecution of the company.

Baron International assembles and markets Akai televisions, audios and home theatre system. The company has built-up a market share of around 18 per cent for the colour televisions through a series of promotional scheme announced every few weeks.

Mulchandani's latest move to seek the intervention of the DCA secretary is interpreted as significant by the corporate watchers as the DGI&R's office comes under the department umbrella.

DGI&R isappointed by the department to investigate into activities of companies for the purpose of unfair and monopolistic trade practices. The DGI&R may initiate suo moto investigation or on direction of the Monopolies and Restrictive Trade Practices Commission.

In this instance, the DGI&R had launched suo moto investigation into the promotional schemes to determine whether the company was misleading the consumers. In specific, the DG's office was investigating the exchange schemes and a scheme under which it was offering a 14 inch portable television free along with a 21 inch television priced at Rs 22,000. The scheme was announced through press advertisement in November 1996.

In order to proceed with the investigation, the DG's office sought details of the scheme such as dealer price of the televisions, production and marketing cost, dealer margin, break up of the cost of television and source of components. Despite repeated reminders, the company did not make available the information sought by the DGI&R.Thereafter the DGI&R petitioned the sessions court under section 49 read with section 11(2) of the Monopolies and Restrictive Trade Practices Act to prosecute Baron International for failure to furnish information. The session court at Patiala House had first summoned the directors to appear before it on Februrary 28. When the directors did not show up, the additional chief metropolitan magistrate Sangita Dhingra Sehgal directed them to appear before the court on April 17.

When this newspaper contacted Baron managing director Kabir J Mulchandani in February, he had stated that he was unaware of any proceedings against him company. He also stated that the summons had not been reached of the offices of the company.

The directors had failed to appear before the court again on April 17. They have now been issued bailable warrants. They are also required to appear before the additional chief metropolitan magistrate on August 27 and furnish bonds of Rs 5,000 each as surety.