High Court asks DGIR to submit files regarding cartel probe

05/06/2009 12:00 - 550 Views

New Delhi, Jun 02, 2009 (Asia Pulse Data Source via COMTEX) -- AHIAF | Quote | Chart | News | PowerRating -- The Delhi High Court has directed the investigative wing of MRTPC to produce documents based on which the anti-monopoly watchdog started probe against alleged cartelisation and price rigging by glass makers Asahi India Glass and Saint-Gobain India among others.

A single member bench of Justice Sanjiv Khanna directed the Director General of Investigation and Registration-- the investigative wing of MRTPC-- to produce the original file on July 7.

The Monopolies and Restrictive Trade Practices Commission had initiated a probe against the glass producers and their association AIFGMA based on some news reports.

"Respondents (DGIR) will produce the original files on the next date of hearing," Justice Khanna said.

Earlier, admitting a petition by the All-India Flat Glass Manufacturers Association (AIFGMA), the court has stayed the investigation proceedings by DGIR. The court had also stayed DGIR orders to the association and two other producers -- Ashai Glass and Saint Gobain -- seeking information and document related to their pricing.

Taking suo motto cognizance over a market report suspecting cartelisation and price rigging of flat glass by the manufacturers, MRTPC in September 2008 had directed DGIR to look into the trading pattern of the industry and role of AIFGMA. This was challenged by AIFGMA and Asahi Glass alleging that MRTPC initiated probe without having proper information.

AIFGMA further submitted that DGIR had directed them to furnish information and documents related to an anti-dumping investigation conducted by the government in 2003 over import of flat glass from China and Indonesia.

"Two of our members have also received ... Seeking detailed information on the anti-dumping investigation under the grab of an enquiry into the cartelisation of the flat glass," submitted AIFGMA in its petition contending that it was beyond MRTPC's purview.

It alleged that DGIR was "just trying to ferret information ... Anti dumping charges has no nexus with cartelisation charges".

It also alleged that the whole exercise of the MRTPC was based on merely an article published having "shards of truth" having no mention about the glass importers, which have made allegations of cartelisation in the report.

AIFGMA members are Asahi India, Gujarat Borosil, Gujarat Guardian (formerly Modiguard), Saint Gobain and Triveni Glass. In its order, the Commission had also directed DGIR to probe specially the role of three big manufacturer Asahi, Saint Gobain and Gujarat Guardian, whose international parents firms were indulged in similar practices in Europe. In November 2007, the European Competition Commission had slapped a fine 487 million euro (about Rs 3,000 crore) on these three big global glass producers.

The court has directed to list the matter on July 7, for next hearing.

Wed. June 03, 2009; Posted: 01:04 AM

Source: www.tradingmarkets.com
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