COMPAT SETS ASIDE RS 72.5 LAKH CCI PENALTY ON KINGFISHER AIRLINES

Mumbai,India : The Competition Appellate Tribunal has set aside a penalty imposed by Competition Commission of India (CCI) on Kingfisher Airlines, which was charged with not furnishing certain information during a probe into a strategic pact announced with Jet Airways

The airline, part of Vijay Mallya-led UB Group, had approached the Tribunal after the CCI imposed a fine of Rs 72.5 lakh on the carrier on January 9, 2012.

After hearing Kingfisher's plea, the COMPAT observed that the CCI had acted beyond its scope in the matter and set aside the penalty.

In its order dated August 29, which was made public today, the Tribunal observed the CCI itself had also kept the matter in abeyance and had termed the letters it sent to Kingfisher for required information as "reminder" notices.

The investigation had at that time was challenged before the High Court and the Supreme court and thus was in abeyance.The Tribunal further said it is "factually incorrect" to term such communications sent by CCI's Director General as notices, as they amounted to extension of time.

This is the second time that COMPAT has set aside a CCI order against Kingfisher in the same matter.Earlier in October 2010, CCI had first imposed a fine of Rs one crore on Kingfisher, which was later challenged before the COMPAT.

01/09/2012  :  moneycontrol.com

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