High Court orders stay on CCIs investigation against Hyundai India

author image CarTrade Editorial Team
Wednesday 20 February 2013, 12:18 PM

Hyundai Motor India, the completely owned division of South Korean auto maker Hyundai, has been granted a stay order from the Madras High Court over the legal proceedings of Competition Commission of India (CCI). The auto maker was alleged in practice of selling spare parts at more prices. Reportedly, Hyundai India was counted among the 17 auto companies, which were investigated by the government authorities.

It must be noted that the auto maker has argued that CCI had expanded the scope of investigation in its own way to the entire auto sector. According to Hyundai India, the commission was asked to audit the proceedings of just three auto makers, namely Honda, Volkswagen and Fiat; however it expanded the scope to 17 companies.

Interestingly, Hyundai India was the only auto maker in the Indian auto industry to challenge the proceedings of CCI in the high court. The auto maker has asked that whether the antitrust regulator is provided with sufficient power and authority to enlarge the scope of investigation in its own, keeping in mind that the complainant did not listed its name in the initial filling. The order stated, “Despite the notice having been served on CCI and its director general, none of them were represented at the hearing.”

Without revealing his identity, an official of CCI said that it will confront the Hyundai’s order in court. He said, “We are considering challenging the order in higher court. We are already in touch with our empanelled counsels.”

Blaming the Indian auto makers, CCI said that they have been charging customers exorbitantly on purchase of spare parts, owing to their dominant market presence. Further, this practice is not just followed by the big players of the market, but also by the new entrants who have just became a part of the league.

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