Nasdaq-listed MakeMyTrip (MMT) has deposited 10 per cent of the CCI imposed penalty amount of ₹223.48 crore for indulging in anti-competitive practices. The company has simultaneously moved the National Company Law Appellate Tribunal (NCLAT) for an early hearing in the CCI matter, sources said.

It maybe recalled that the Delhi High Court had earlier this month stayed the recovery of 90 per cent penalty (total penalty was ₹223.48 crore) on deposit of 10 per cent, which MMT has now done, they added. Although the Court had provided this relief on the CCI’s order related to monetary aspect, it redirected had for the non monetary measures imposed by theCompetition watchdog redirected MMT to NCLAT on matters related to non-monetary aspects.

MMT had approached the Delhi High Court against NCLAT order of December 6 that admitted the appeal to CCI order on deposit of 10 per cent of the penalty. 

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MMT had contented that NCLAT order was completely ambiguous as to the reasons for which the direction for deposit of 10 per cent of the penalty amount imposed by the CCI has been issued. 

MakeMyTrip had also contended before the Delhi High Court that the NCLAT order does not grant any interim protection qua the remaining 90 per cent of the penalty amount, or any other directions issued by the CCI.

In its writ before Delhi High Court, MakeMyTrip had contended that NCLAT passed order without jurisdiction, in gross violation of the principles of natural justice.

It had also said that the order has been passed without due application of mind to the relevant factors, and is arbitrary, unreasonable, and untenable in law, thereby causing grave prejudice to MMT in violation of Article 14 and Article 19 of the Constitution of India. 

In the memorandum of appeal, it has been highlighted that Section 53B of the Competition Act, 2002 confers a right upon any person aggrieved by the specified direction, decision or order passed by CCI to prefer an appeal to NCLAT, accompanied by such fee as may be prescribed. 

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“The statutory provision does not impose any condition of pre-deposit for entertaining the appeal,” added the writ petition.

NCLAT had on December 6 stayed the ₹223.48-crore penalty levied by CCI on Nasdaq-listed MakeMyTrip-Goibibo (MMT-Go) for indulging in anti-competitive practices. The stay on penalty was granted subject to MMT-Go depositing 10 per cent of the penalty amount.

MakeMyTrip had however demanded complete stay of the entire CCI order including the non monetary sanctions. 

Complaint before CCI

The fair trade watchdog opened an investigation against MMT-Go and OYO in 2019, after Federation of Hotel & Restaurant Associations of India (FHRAI) lodged a complaint with it alleging that MMT-Go imposed a price parity in their agreement with hotel partners whereby the hotel partners are not allowed to sell their rooms at any other platform or on its own online portal at a price below the price at which it is being offered on MMT-Go’s platform. 

Also, the hotel partners are mandated to observe room parity whereby they cannot refuse to provide rooms on MMT-Go at any given point of time if the rooms are being provided on any other platform.

Further, it was alleged that MMT and OYO entered into confidential commercial agreements wherein MMT has agreed to give preferential treatment to OYO on its platform.

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