Court Extends Stay on Maruti Suzuki Penalty Order

Delhi High Court today extended the stay on the Competition Commission of India's (CCI) order
levying a penalty of Rs 471 crore on Maruti Suzuki India (MSI) for allegedly abusing its dominant position in the spare parts market.

Justice Rajiv Shakdher also restrained CCI from taking any "coercive measures" against the car-maker after it sought protection on the ground that other automobile manufacturers have already got relief from the division bench of the High Court and it be treated on par with them.

"...in view of the above submissions no coercive measures be taken by the CCI till further order of this court," the court said.

On September 3 last year, MSI got relief when the High Court had given an interim stay to the fair trade watchdog's August 25, 2014 order till the final disposal of similar pleas before the Madras High Court, filed by car manufacturers Hyundai and Nissan.

On August 25, 2014, the CCI had slapped a total penalty of Rs 2,545 crore on 14 car-makers in India in September last year. Out of the total, the fine imposed on MSI was Rs 471.14 crore.

The CCI had found them guilty of violating trade norms in the spare parts and after-services market and the same was to be deposited within 60 days.

The other car-makers are before the division bench of the High Court, which has also stayed the CCI's August 25, 2014 order till disposal of the appeals.

Apart from seeking a stay on the fine, Maruti, which was represented by senior advocate Amit Sibal, has also challenged CCI's legal proceedings on alleged anti-competitive practice of selling spare parts at higher prices.