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Informist, Monday, Sep 23, 2024

 

NEW DELHI – The Delhi High Court has issued notices to the Competition Commission of India and its director general, the Centre, and the government of Haryana on a petition by Apollo Tyres seeking the antitrust watchdog to stop further probe in a case pending from 2019. The high court will hear the case next on Jan 6.

 

Further, Apollo Tyres also wanted the court to direct the Competition Commission to disclose the confidential director general's report of July 2023, along with the watchdog's direction to the director general to submit a supplementary probe report. None of these reports are accessible to the petitioner currently. 

 

A violation which allegedly took place in 2018 has been under investigation by the CCI and its director general for more than six years, said Apollo Tyres. Any such delayed investigation or any competitive analysis at this stage will not have any positive impact on the market, irrespective of its findings, Apollo Tyres added. 

 

The case has its genesis in the Haryana government inviting tenders in 2018 for the purchase of new steel radial tyres of different sizes and specifications. Only one bidder, J.K. Tyre and Industries Ltd, had participated in the tender.

 

In 2019, the Haryana government made a reference against J.K. Tyre in terms of Section 19(1)(b) of the Competition Act, 2002. The state government alleged that J.K. Tyre had indulged in anti-competitive agreements and contravened Section 3 of the Competition Act. Thereafter, in the same year, the competition watchdog issued a prima facie opinion that there seemed to be a violation of Sections 3(1) and 3(3) of the 2002 act. The antitrust body asked its director general to investigate the case.

 

Initially, Apollo Tyres was asked to submit information as a third party and was not made an opposite party. Later, Apollo Tyres and other manufacturers, including MRF Ltd, were made opposite parties in the case. Apollo Tyres said that the investigation by the director general was still ongoing in the case after the competition watchdog had granted multiple extensions. Today, shares of Apollo Tyres ended 0.9% higher at 520.05 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Aditya Sakorkar

 

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