Fair trade regulator CCI has rejected a complaint alleging unfair business practices by Kalptaru Buildtech Corporation, saying the case relates to cheating and fraud and does not raise any competition issue.
The complaint filed collectively by 22 individuals had alleged that the company was misleading the public by collecting money from them by issuing policy/bonds with a promise to pay them the amount on maturity with agreed returns or to allot them plots of land.
However, the firm failed to pay the money along with assured returns to the informants on maturity of their bond/ policy.
The watchdog noted that as per the allegations, the company cheated and defrauded the informants.
Rejecting the allegations, CCI said "the Commission is of the view that the averments made by the informants do not raise any competition issue and therefore, the case does not fall within the ambit of the Act.
The Commission concluded that "no case of contravention of any of the provisions of either Section 3 or 4 of the Act is made out against any of the company in the instant matter".
While Section 3 of the Competition Act pertains to anti- competitive practices, Section 4 relates to abuse of dominant position.
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