NCLAT Rejects MakeMyTrip Plea for Advance Hearing on Rs 223.48 crore Penalty
NCLAT Rejects MakeMyTrip Plea for Advance Hearing on Rs 223.48 crore Penalty
The National Company Law Appellate Tribunal (NCLAT) declined to entertain MakeMyTrip's application to advance the hearing of its challenge to the Competition Commission of India's (CCI) order imposing Rs 223.48-crore fine for unfair business practices.
In October 2022, the competition watchdog had imposed penalties of more than Rs 392 crore on a clutch of aggregators. While online travel firms MakeMyTrip and Goibibo (MMT-Go) were fined Rs 223.48 crore, hospitality services provider OYO was charged Rs 168.88 crore for unfair business practices.
According to CCI ruling, MMT-Go imposed a price parity in their agreements with hotel partners. Under such pacts, the hotel partners are not allowed to sell their rooms on any other platform or on its own online portal at a price below what it is being offered on the two entities' platforms.
Apart from levying fines, the CCI directed MMT-Go to "suitably modify its agreements with hotels/chain hotels to remove/abandon the price and room availability parity obligations imposed by it on its hotel/chain hotel partners with respect to other OTAs (Online Travel Agencies)."
Subsequently, MakeMyTrip had filed a writ petition against the NCLAT order at the Delhi High Court however, the High Court refused to entertain the petition and observed that the company is free to approach the Tribunal for any other interim reliefs.
In December 2022, the company appealed against the CCI order in NCLAT. The tribunal, while admitting the appeal, directed MakeMyTrip to deposit 10 percent of the penalty to stay the recovery of the penalty and now further has listed the case for final hearing on 11th April 2023.
