The Competition Commission of India (CCI) has ordered an inquiry against Tata Motors. The company has been accused of taking advantage of its monopoly in the market. In view of this, an inquiry has been ordered against Tata Motors for alleged misuse of its strong position in the dealership agreements in the market.
Mumbai. The Competition Commission of India (CCI) has ordered an inquiry against Tata Motors. The company has been accused of taking advantage of its monopoly in the market. In view of this, an inquiry has been ordered against Tata Motors for alleged misuse of its strong position in the dealership agreements in the market.
The Competition Commission of India (CCI) said in its 45-page order, CCI found that taking advantage of the strong market position on Tata Motors imposed unfair terms and conditions in the dealership agreement for commercial vehicles, which Section 4 of the Competition Law Is a violation of the provisions of. Investigations on Tata Capital Financial Services and Tata Motors Finance
In this case, an inquiry has been ordered into two complaints against Tata Motors, Tata Capital Financial Services Limited and Tata Motors Finance Limited. The CCI has asked its investigating unit director general (DG) to investigate the matter in detail.
In fact, 2 dealers of Tata Motors had lodged a complaint with CCI that the company is pressurizing them to stock the quantity of vehicles and a particular type of vehicles and is forcing them to do so.
At the same time, it is preventing them from starting a new business, acquiring or selling any new product, even if it is not related to the automobile business.
Tata denied any
wrongdoing. CCI said in its order that prima facie the company took undue advantage of its strong presence in the market and put pressure on the dealers which is wrong. The Commission has handed over the investigation to the matter to the DG. However, Tata Motors has denied any mistake in this regard. The company said that the CCI’s fiddings are not final. Let us tell you that Tata Motors has more than 40% stake in the commercial vehicles segment of the country.
