Delhi High Court Seeks Corporate Affairs Ministry’s Response On Apollo Tyres’ Petition To Halt CCI Probe

Delhi High Court Seeks Corporate Affairs Ministry’s Response On Apollo Tyres’ Petition To Halt CCI Probe

Ongoing since 2019, it involves multiple extensions and a complaint by the Haryana Government against JK Tyre

The Delhi High Court has asked the Ministry of Corporate Affairs (MCA) and the Competition Commission of India (CCI) to respond to Apollo Tyres' petition to halt an investigation into the alleged anti-competitive practices.

The bench of Justice Sanjeev Narula notified the ministry, the CCI, its director-general (DG), and the Haryana government on a petition by Apollo Tyres seeking to set aside the November 2023 order of the Commission, directing its investigative arm to probe further. (The case will be heard on 06 January).

The manufacturer sought direction to the CCI to give it the two confidential reports - the DG's 2023 report and the CCI’s direction to the DG to submit a supplementary probe report, as these were not shared with the company.

The tyre company informed the court that the DG’s investigation was still on after the Commission was granted multiple extensions.

Generally, the investigation onf violations under Sections 3 and 4 is time-sensitive.

The company stated, "Specifically, Regulation 20(2) of the CCI (General) Regulations, 2009 provides that the anti-trust body shall direct its DG to submit a report within 60 days. In this case, 14 extensions (mostly of 150 days), were granted by the CCI to the DG to investigate the matter.”

The alleged violation that took place in 2018, has been under investigation by the CCI for over six years. A delayed investigation or any competitive analysis at this stage will not impact the market, irrespective of its findings, it added.

Apollo Tyres had invited tenders to purchase new steel radial tyres of different sizes and specifications. Only one bidder JK Tyre and Industries participated. The Haryana government considered the rates to be high.

In July 2019, the government referred against JK Tyre in terms of Section 19 (1) (b) of the Competition Act, 2002.

It accused the company of indulging in 'anti-competitive agreements. The same year, the competition watchdog issued a prima facie opinion of a violation of Sections 3(1) and 3(3) of the Act, asking the DG to investigate.

Apollo Tyres was initially directed to submit information as a third party. However, later, Apollo Tyres and other manufacturers, including MRF Ltd were made opposite parties in the case.