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Notices to Car Makers by CCI



Notices to Car Makers by CCI 

The Competition Act, 2002 (the Act) mandates the Competition Commission of India (CCI) to impose penalties and/or issue cease and desist orders in appropriate cases of anti-competitive agreements and abuse of dominance. The CCI vide order dated 25.08.2014 in case No.3 of 2011 has imposed a penalty of Rs.2544.65 crore along with cease and desist order on 14 car companies for contravention of the provisions of the Act. The order of the Commission has been challenged by the parties before Hon’ble High Court of Delhi/Competition Appellate Tribunal who have stayed the penalty imposed by the CCI. 


Similar order of CCI dated 27.07.2015 imposing a penalty of Rs.420.26 crore on a 15th car company, M/s Hyundai Motor India Ltd. has not been given effect to as per the directions of Hon’ble Madras High Court. 

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today. 

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Investor Complaints Against Companies 

Government has taken action against any company for non-initiation of any action on the complaints of their investors. Investors’ complaints received in the Ministry and its field offices are forwarded to the concerned companies for remedial action. In case the company fails to redress the grievance of the complainant and/or is found to be in violation of the provisions of the Companies Act, suitable action under the provisions of the Companies Act, 2013/1956 is initiated. 

Prosecution related to investors’ complaints has been launched against 73 companies in 2012-13, 66 companies in 2013-14 and 102 companies in 2014-15. 

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today. 

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Online Rulings/Judgments of Company Law Board 


Orders of the Company Law Board pronounced from the year 2010 onwards under various sections of the Companies Act, 1956 & 2013, are available through on-line access on its website namely www.clb.gov.in.  At present, there is no plan to include Company Law Board under the e-courts as the Board will stand dissolved on constitution of National Company Law Tribunal, under the provisions of Companies Act, 2013. 

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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Human Rights Impact Assessment 

The Companies Act, 1956/2013 does not contain any provisions related to human rights impact assessment (HRIA) for companies. Further, National Human Rights Commission (NHRC), which deals with complaints about alleged violation of human rights by a public servant only, does not maintain a separate incident code or record under the head Human Rights Impact Assessment (HRIA) for companies in India. In case of proven violation of human rights, NHRC can make recommendations to the concerned authorities in Central/State Government. Appropriate recommendations have been made by NHRC to the concerned government authorities for relief / rehabilitation of the project affected in cases of displacement of villagers/local people on account of acquisition of lands for ‘mega projects’ in various States. There is no proposal before the Ministry of Home Affairs or Ministry of Corporate Affairs to make HRIA mandatory for companies. 

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today. 

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Difference in the Salaries of Indian and Foreign Employees for Same Level of Posts in MNCs Working in India 

The remuneration payable by a company at the Board level is governed by section 197 of the Companies Act, 2013 (the Act) read with Rules framed thereunder which do not discriminate between managerial personnel, whether Indian or foreign. As far as below Board level employees of companies are concerned, whether Indian or foreign, their salaries are not regulated under the Act. 

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today. 

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Pending Cases of Fraud with RoCs 

No cases of frauds are lying pending since long in the Office of Registrar of Companies (RoCs) and Regional Director.  Cases involving serious fraud are sent to SFIO without any undue delay.  The number of cases sent to SFIO and the prosecutions filed in the last three years:

Year
Number of cases sent to SFIO
Prosecutions filed
2013-14
83
89
2014-15
70
61
2015-16
42
44

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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