Two companies have challenged Competition Commission of India’s order imposing a penalty of Rs 317.91 crore on aluminium phosphide tablet manufacturers for allegedly forming a cartel and manipulating price has been challenged before appellate tribunal COMPAT.
Two firms — Excel Crop Care and Sandhya Organics Chemical — have challenged the findings of the CCI before the COMPAT.
The matter would be placed before a three-member COMPAT Bench headed by Mr Justice V.S. Sirpurkar on Monday.
It would be also the first hearing of Mr Justice Sirpurkar, a retired Judge of the Supreme Court of India, who had joined the tribunal on May 22.
Aluminum phosphide tablets are used as a rodenticide, insecticide, and fumigant for stored cereal grains. It is used to kill small verminous mammals such as moles and rodents.
Passing an order in April, the CCI had imposed fine of 317.91 crore on three manufacturers.
The commission had imposed Rs 252.44 crore fine on United Phosphorus and Rs 63.90 crore and Rs 1.57 crore respectively on Excel Crop Care and Sandhya Organics.
The penalty was computed on the basis of 9 per cent of the average of three years turnover on the three producers.
The CCI had ordered a probe after receiving complaints from the Food Corporation of India.
The CMD of FCI had informed the fair trade regulator in February 2011 towards rise in cost of procurement due to formation of cartel by the manufacturers.
The PSU had further alleged manufacturers quoted incidental rates and inflated the price in bids for invited for preservation of the central pool foodgrain.