Madras HC dismisses Hyundai & BMW petition against Competition Commission

Court also observes CCI's investigation arm did not overstep

The Madras High Court on Wednesday dismissed petitions by carmakers Hyundai and BMW against fines by the Competition Commission of India (CCI) for not selling spares in the open market.

In August, the CCI imposed a combined fine of Rs 2,554 crore on 14 carmakers for violating competition norms in their agreements with original equipment suppliers and authorised dealers.

The court observed the CCI's investigation arm did not overstep its brief by including the entire car sector, though it had originally received complaints against three firms, Honda, Volkswagen and Fiat.

Hyundai and BMW argued the CCI did not have power to expand the scope of investigation beyond the referred companies.

Most of the carmakers fined have moved court. Hyundai, Nissan and BMW pleaded in the court.

The complaint against Honda, Volkswagen and Fiat was filed in January 2011. In April that year the CCI extended its investigation to other makers.

Hyundai obtained a stay order from the court against the CCI's proceedings in February 2013. Nissan also moved court in September 2013, but it withdrew its appeal with the option of approaching the appellate tribunal.

The CCI has fined Mahindra and Mahindra, Tata Motors, Toyota Kirloskar, Honda, Volkswagen, Fiat, Ford, General Motors, Nissan, Hindustan Motors, Mercedes-Benz, Maruti Suzuki, Skoda Auto, and BMW.