Fair trade regulator CCI has rejected the allegation against Shriram Chits that it abused dominant position in the market for 'chit fund service'.
"As opposition party (Shriram Chits)does not appear to be a dominant player in the relevant market, the question of abuse does not arise," Competition Commission of India (CCI) said in its yesterday order.
"Even if it is assumed that OP was a dominant player in the relevant market, the conduct in the particular case does not fall within the realm (of relevant section) for the purpose of abuse," it added.
Consequently, CCI has closed the case against Shriram Chits.
In a complaint, chartered accountant Sreeram Mushty had said that the company indulged in unfair business practices by wrongfully invoking certain sections of the standard chit fund agreement.
Besides, it was also alleged that Shriram Chits was dominant in the relevant market.
"The opposite party may be a large chit fund company in Andhra Pradesh and may be dominant. However, mere dominance per se cannot be acted against by the Commission. To invoke the jurisdiction of the Commission a prima facie abuse or misuse of the dominance is to be shown," the CCI order noted.
