CCI to act against Bollywood star Aamir Khan, 8 others for defaulting on penalty

Written by PTI | New Delhi | Updated: Oct 15 2013, 21:18pm hrs
Aamir khanPending penalty against Aamir Khan stands at Rs 1 lakh only
Fair trade regulator CCI on Tuesday said it will initiate recovery proceedings against Bollywood star Aamir Khan, two film producers associations and six others for failing to pay penalties imposed on them.

These penalties, totalling Rs 2.17 crore, are pending for up to over two years despite there being no appeal filed or appeal having been dismissed, CCI said while publishing a list of these defaulters.

Pending penalty against Aamir Khan stood at Rs one lakh only, which was imposed as part of an order passed against 27 film producers on May 25, 2011 in a case related to anti-competition practices by filmmakers.

This order was passed pursuant to a complaint filed with the Competition Commission of India (CII) by FICCI-Multiplex Association of India.

Besides Aamir Khan, the fair trade watchdog said "appropriate action" against eight other entities would also be taken.

These include IATA Agents Association of India, Telangana Telugu Film Distributors Association, Film Distributors Association, Kerala, and Andhra Pradesh Film Chamber of Commerce.

Among the nine entities, All India Organisation of Chemists & Druggists has to pay the highest penalty of little over Rs 1.47 crore, according to the regulator.

CCI, which keeps a check on any unfair trade practices at the market place, said it has decided to take suitable and appropriate steps to recover unpaid penalties from parties that have been imposed under the Competition Act, 2002.

"CCI could initiate prosecution under Section 42(3) of the Competition Act for not complying with the orders of the Commission and follow-up reference to Income Tax Department could be made for action on recovery certificates already issued to these entities," it said.