Liquor makers approach NCLAT against CCI order allege abuse of dominance by KSBC in Kerala
New Delhi Jan 26 PTI Liquor industry bodies CIABC and ADBVI have approached the NCLAT alleging abuse of dominant position by the Kerala State Beverages Manufacturing and Marketing Corporation in the state The Confederation of Indian Alcoholic Beverage Companies CIABC and Association of Distillers Brewers and Vintners of India ADBVI have challenged an earlier order passed by the Competition Commission of India CCI which had in October 2020 rejected their pleas and said there exists no prima facie case The National Company Law Appellate Tribunal NCLAT which is an appellate authority on January 24issued notice to the Kerala State Beverages Corporation KSBC and Travancore Sugar and Chemicals Ltd TSCL on their pleas Issue notice to Respondents No 2 KSBC and 3 TSCL returnable within four weeks Requisites along with process fee be filed within three days the NCLAT order said The appellate tribunal has fixed February 28 as the next date of hearing Kerala State Beverages Manufacturing and Marketing Corporation is a public sector body entrusted with exclusive control over the procurement wholesale and retail sale of liquor in the state In 2001 KSBC was also entrusted with the majority of retail outlets for the sale of alcoholic beverages in Kerala The associations submitted before the CCI that the entire supply chain from procurement to distribution and sale of liquor including India Made Foreign Liquor IMFL beer wine Foreign Made Foreign Liquor FMFL and Foreign Made Wine FMW in Kerala is controlled by it They had alleged that KSBC for the purpose of procurement of liquor floats tenders periodically inviting liquor manufacturers to participate and unilaterally and unfairly fixes the contract price Moreover abusing its dominant position it imposes unfair and discriminatory prices and terms on private alcoholic beverages manufacturers as against government brands and leverages its monopoly position by providing favourable prices as well as terms and conditions in the purchase of the product of TSCL It was alleged that KSBC grants preferential treatment to TSCL in terms of lower wholesale margin lower cash discount and priority in unloading at depots thereby placing private brands at a competitive disadvantage However this was rejected by the CCI which observed that several manufacturers were supplying multiple liquor brands to KSBC whereas TSCL was supplying only one brand of rum The CCI had also observed that the complainants had not been able to demonstrate how competition in general with the existence of so many brands in the market was adversely affected In light of the facts and evidence on record and based on the submissions of parties the allegations of abuse raised by the Informants are not found to be validated and no case of contravention of provisions of Section 4 of the Act can be stated to have arisen the CCI had said Act refers to the Competition Act 2002 Section 4 of the Act relates to the abuse of dominant position PTI KRH ABM ABM
New Delhi Jan 26 PTI Liquor industry bodies CIABC and ADBVI have approached the NCLAT alleging abuse of dominant position by the Kerala State Beverages Manufacturing and Marketing Corporation in the state The Confederation of Indian Alcoholic Beverage Companies CIABC and Association of Distillers Brewers and Vintners of India ADBVI have challenged an earlier order passed by the Competition Commission of India CCI which had in October 2020 rejected their pleas and said there exists no prima facie case The National Company Law Appellate Tribunal NCLAT which is an appellate authority on January 24issued notice to the Kerala State Beverages Corporation KSBC and Travancore Sugar and Chemicals Ltd TSCL on their pleas Issue notice to Respondents No 2 KSBC and 3 TSCL returnable within four weeks Requisites along with process fee be filed within three days the NCLAT order said The appellate tribunal has fixed February 28 as the next date of hearing Kerala State Beverages Manufacturing and Marketing Corporation is a public sector body entrusted with exclusive control over the procurement wholesale and retail sale of liquor in the state In 2001 KSBC was also entrusted with the majority of retail outlets for the sale of alcoholic beverages in Kerala The associations submitted before the CCI that the entire supply chain from procurement to distribution and sale of liquor including India Made Foreign Liquor IMFL beer wine Foreign Made Foreign Liquor FMFL and Foreign Made Wine FMW in Kerala is controlled by it They had alleged that KSBC for the purpose of procurement of liquor floats tenders periodically inviting liquor manufacturers to participate and unilaterally and unfairly fixes the contract price Moreover abusing its dominant position it imposes unfair and discriminatory prices and terms on private alcoholic beverages manufacturers as against government brands and leverages its monopoly position by providing favourable prices as well as terms and conditions in the purchase of the product of TSCL It was alleged that KSBC grants preferential treatment to TSCL in terms of lower wholesale margin lower cash discount and priority in unloading at depots thereby placing private brands at a competitive disadvantage However this was rejected by the CCI which observed that several manufacturers were supplying multiple liquor brands to KSBC whereas TSCL was supplying only one brand of rum The CCI had also observed that the complainants had not been able to demonstrate how competition in general with the existence of so many brands in the market was adversely affected In light of the facts and evidence on record and based on the submissions of parties the allegations of abuse raised by the Informants are not found to be validated and no case of contravention of provisions of Section 4 of the Act can be stated to have arisen the CCI had said Act refers to the Competition Act 2002 Section 4 of the Act relates to the abuse of dominant position PTI KRH ABM ABM
