Car maker Hyundai was fined Rs 87 crore by the Competition Commission of India (CCI) for anti-competitive discounting of its cars in a complaint made by two informants and Hyundai dealers - Fx Enterprise Solutions and St Antony’s Cars.

Talwar Thakore & Associates TT&A in collaboration with Vinod Dhall acted for Fx Enterprise Solutions led by competition law executive chairman Vinod Dhall, managing associate Sonam Mathur and associate Kabyashree Chaharia. Advocate Saraswat Mohpatra also appeared for Fx.

KK Sharma Law Offices founder KK Sharma with advocate Bunmeet Singh Grover acted for St Antony’s Cars.

Hyundai was represented by Chandhiok & Associates and the team comprised of Karan Singh Chandhiok, Vikram Sobti, Aroon Menon and Mathew George, alongside Hyundai senior manager legal Aditya Sharma and assistant manager legal Shri Sukomal Satyen.

The Indian Express reported:

The Competition Commission of India (CCI) issued orders against Hyundai Motor India Ltd on Wednesday, for anti-competitive conduct. It found the company to be in violation of the Competition Act, 2002, for unfair business practices by providing discounts for its cars. The commission imposed a penalty of Rs 87 crore on the company. Further, a cease and desist order has been passed against the company.

The regulator penalised Hyundai for making arrangements with its dealers which resulted into Resale Price Maintenance in the sale of passenger cars manufactured by it. The arrangements included monitoring of the maximum permissible discount levels through a Discount Control Mechanism.

“Such conduct pertains to and emanates out of sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from sale of motor vehicles alone has to be taken into account,” CCI noted in its 44-page order.

Hyundai CCI order