NCLAT stays CCI order imposing Rs 873 crore penalty on UBL
The National Company Law Appellate Tribunal (NCLAT) has imposed a stay on the orders passed by fair trade regulator CCI slapping penalties on several beer makers, including United Breweries which faces a fine of Rs 751.8 crore.
Passing an interim order, a two-member NCLAT bench has directed parties, including United Breweries, to deposit 10 per cent of the penalty amount by way of ‘Fixed Deposit Receipt’ within three weeks.
The Competition Commission of India (CCI) on September 24, 2021, imposed penalties totalling over Rs 873 crore on UBL, Carlsberg India, All India Brewers’ Association (AIBA) and 11 individuals for cartelisation in the sale and supply of beer.
The said order was challenged before the NCLAT, which is an appellate authority over the CCI. It hears appeals against any direction issued or decision made or order passed by the CCI.
The NCLAT has also directed the CCI and the All India Brewers Association to file replies over the notices issued by it.
The appellate tribunal has directed to list the matter on March 29, 2022, for admission.
UBL in a regulatory filing said it received an order passed by the NCLAT.
⚫ The beer makers, including United Breweries, have to deposit 10% of the penalty amount by way of ‘Fixed Deposit Receipt’ within three weeks.
⚫ The CCI had imposed penalties totalling over Rs 873 crore on UB, Carlsberg India, All India Brewers’ Association and 11 individuals for cartelisation.