CCI rejects SUV buyer's appeal against Force Motor

Fair trade regulator CCI today rejected an appeal filed by a sports utility vehicle buyer against carmaker Force Motor and said that the complaint about the SUV's performance being non-satisfactory did not fall "within the four corners" of the Competition Act.

Terming the complaint as a fit case for being closed, the Competition Commission of India (CCI) said that it has found that "no prima facie case is made out against the opposite parties... Act for referring the matter to Director General (DG) for investigation."

The complaint was filed by one Subhash Yadav claiming that the performance of the Sports Utility Vehicle (SUV) – 'Force One' -- purchased by him was much below satisfaction.

Yadav alleged that he faced various problems after purchasing the vehicle, including overheating of the engine whenever the air conditioner was switched on.

However, CCI said in its order, dated October 5 and released today, that "the information filed by the informant does not fall within the four corners of the (Competition) Act."

Yadav had said that Force Motor has used Daimler engine in vehicle which is normally used in the Mercedes SUVs priced at Rs 30 lakhs and above, whereas it has been used in 'Force One' vehicle which is being sold for Rs 11.5 lakhs.

Yadav had, therefore, alleged that Force Motor Ltd created dominant position by cutting the competition in the market in India by pricing the vehicle at a very competitive price compared to similar vehicles of other manufacturers.

"The informant (Yadav) alleged that the Opposite Party (Force Motor Ltd) indulges into unfair and discriminatory conditions in purchase/ sale of goods and also indulged in predatory pricing," CCI said.

Yadav had further alleged that the agreement between the Force Motor Ltd and Daimler AG in Germany is void.

However, CCI noted that Yadav did not substantiate how the agreement between Force Motor and Daimler AG has infringed certain sections of the Competition Act.

ALSO READ

After lull, highway projects see aggressive bid offers

Govt aims to bring down CAD to 2.5% by 12th Plan-end, says Montek

Raghuram Rajan not in favour of sovereign bond to finance CAD

Airfares: Travel agents to keep shutters down on Tuesday