COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Monopolies body fines defunct PAL-Peugeot

The Monopolies and Restrictive Trade Practices Commission has slapped a fine of Rs 1,000 on PAL-Peugeot Limited for having indulged in unfair trade practices by delaying the refund of booking amounts.

The MRTPC has also directed the auto major to refund the booking amount by August 23 along with 18 per cent interest from the date of deposit till the date of refund.

MRTPC member S K Parthasarathy passed this order, in the absence of any reply from the respondents, on a complaint from a private firm, Multitech Computers. The company had made an application against PAL, PAL-Peugeot Limited and Prem Nath Motors Limited.

The private firm had registered for two Peugeot 309 cars in October 1995 and paid Rs 50,000 as registration amount. Thereafter in September 1996, the company sought cancellation of the bookings and asked for refund. However, in spite of repeated requests, the refunds were not made.

The terms and conditions agreed with the respondents, in case of cancellation, was that the refund of the booking amount with interest was to be made within 60 days of the receipt of the request.

When served notice by the commission, the auto company failed to respond. Hence, MRTPC member Parthasarthy said the commission will have to accept the case of the applicant and noted the action of PAL-Peugeot ''in not honouring the representation that the booking amount will be refunded on cancellation of the booking, amounts to unfair trade practice under Section 36A of the (MRTP) Act''.

Moreover, the commission observed, the private firm in this case has certainly suffered loss and damage due to indulgence in unfair trade practice on the part of PAL-Peugeot as it has been deprived of the booking amount.

UNI

Business news