Aviation Cos. challenge against enquiry by CCI rejected

New Delhi: The Delhi High court has dismissed petitions filed by Federation of Indian Airlines (FIA) and Interglobe Aviation Limited challenging Competition Commission of India (CCI) jurisdiction in adjudication of a case transferred to it by erstwhile Monopolies and Restrictive Trade Practices Commission (MRTP Commission).
The MRTP commission had in February last year ordered an investigation into reports of alleged unfair trade practices being adopted by the airline operators including the petitioners. The commission had on the basis of the reports that airline operators increased air fares and withdrew the promotional fares as a result of which additional costs were imposed on the consumer and competition in the industry was reduced, ordered a preliminary investigation into the matter by the Director General (Investigation & Registration).
The government in August 2009 repealed the MRTP act and the matter was transferred to the CCI.
The petitioners moved to the High Court contending that the CCI had no jurisdiction to deal with the case. Senior counsel NK Kaul and Amit Kapur appearing for the petitioners citing the provisions of competition act submitted that the matter had to be transferred to Competition Appellate Tribunal (CAT).
13/10/10 Abhijit Pandey/Law et al. news

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Categories: Indian Aviation- In General Oct 2010, Indigo Airlines Oct 2010