In a "trail blazing" order, fair trade regulator CCI has passed directions against two repeat violators barring them from being associated with business activities where they were found flouting competition norms.
Bolstering efforts to weed out unfair business practices, the watchdog has exercised the option in the ruling against two office bearers of a Kerala-based film exhibitors association.
While Sebi has been frequently barring entities violating regulations from the securities market, this is the first time that Competition Commission of India (CCI) has exercised the option.
Penalising the Kerala Film Exhibitors Federation (KFEF) for indulging in anti-competitive practices earlier this month, the regulator also asked the grouping not to associate two office bearers -- P V Basheer Ahmed and M C Bobby -- with its affairs for two years.
A fine of Rs 1.86 lakh was imposed on the association as well as the two individuals.
About the ruling, CCI Chairman Ashok Chawla said the idea was to send out a message.
"Since there is an element of repetition in this thing, so as a trail blazing order we have conveyed that these people should not participate in the activities of the association... They should be kept away," Chawla told PTI.
It was the second time KFEF and these two individuals were fined for anti-competitive ways. In a separate case, CCI in June had imposed over Rs 1.29 lakh penalty on KFEF as well as on Ahmed and Bobby.
"Very often associations are controlled by certain people and unless those people are restrained from participating in the activities of the association, that perhaps the kind of change in behaviour that we expect from the associations will not come about," Chawla said.
The whole idea is that the order should be more effective and that ultimately at the end of the day the culture of competition compliance should percolate, he emphasised.
When asked whether such an order could face legal hurdles, the CCI chief said: "There could be a legal challenge but I don't think we have done anything which is not within the mandate of the (Competition) Act."
Over a period of time, many CCI rulings have been challenged by concerned parties.
In its order dated September 8, the regulator had directed KFEF not to associate Ahmed and Bobby with its affairs, including administration, management and governance, in any manner for two years.
