CCI slaps Rs 200 cr penalty on Maruti Suzuki;says discount control policy violates competition norms
New Delhi, Aug 23: Competition Commission of India (CCI) on Monday imposed a penalty of Rs 200 crore on Maruti Suzuki for restricting discounts offered by its dealers and directed the country's largest car maker to cease and desist from indulging in unfair business practices.
In a 39-page order, the fair trade regulator also flagged practices like appointing 'Mystery Shopping Agencies' and preparing 'Mystery Audit Reports' as part of enforcing the company's discount control policy.
An MSIL spokesperson said, "We are examining the order and will take appropriate actions under law."
The watchdog slapped the fine of Rs 200 crore as it found that Maruti Suzuki India Ltd (MSIL) indulged in anti-competitive conduct of Resale Price Maintenance (RPM) in the passenger vehicle segment by way of implementing discount control policy vis-a-vis dealers, an official release said on Monday.
MSIL had an agreement with its dealers whereby the dealers were restrained from offering discounts to the customers beyond those prescribed by it. In other words, the company had a discount control policy and dealers who wanted to offer additional discounts were required to compulsorily seek the company's prior approval, as per the regulator.
The case was taken up suo motu by the regulator based on an anonymous e-mail, dated November 2017, received from a purported MSIL dealer. It was alleged that MSIL's sales policy is against the interest of customers as well as the provisions of the Competition Act.
On July 2019, after finding prima-facie evidence of competition law violations, the CCI ordered a detailed probe into the matter by its Director General (DG).
While deciding on the Rs 200 crore penalty, the regulator also took into consideration the post-pandemic phase of recovery of the auto sector.
According to the CCI, any dealer found violating the policy was threatened with imposition of penalty, not only upon the dealership but also upon its individual persons, including direct sales executive, regional manager and showroom manager.
To enforce the discount control policy, the watchdog said the company appointed 'Mystery Shopping Agencies' (MSAs) who used to pose as customers to MSIL dealerships to find out if any additional discounts were being offered to customers.
"If found offered, the MSA would report to MSIL management with proof (audio/ video recording) who, in turn, would send an e-mail to the errant dealership with a 'Mystery Shopping Audit Report', confronting them with the additional discount offered and asking for clarification," the release said.
Further, the CCI noted that if the clarification offered by the dealer concerned was not satisfactory, then penalty would be imposed on the dealership and its employees, accompanied in some cases, by the threat of stopping supplies.
"MSIL would even dictate to the dealership where the penalty had to be deposited and utilisation of the penalty amount was also done as per the diktats of MSIL," the release said.
The CCI found that the car maker not only imposed the discount control policy on its dealers but also monitored and enforced the same by monitoring dealers through MSAs, imposing penalties on them and threatening strict action like stoppage of supply, collecting and recovering penalty, and utilisation of the same.
Such activities have resulted in appreciable adverse effect on competition within India, it noted.
"Having considered the nature of the infringing conduct and the post pandemic phase of recovery of automobile sector, the Commission takes a considerate view and deems it appropriate to impose a penalty of Rs 200 crore... only upon MSIL, as against a maximum penalty permissible under the provisions of the Act, which may extend up to ten percent of the average of the turnover of the entity for the last three preceding financial years," the order said.
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Karnataka: GBA city corporation polls likely between June 14 and 24
Bengaluru (PTI): Karnataka State Election Commissioner G S Sangreshi on Friday said elections to the five city corporations under the GBA will be held anytime between June 14 and June 24.
He said the exact date for the polls will be announced after a week, asserting that the power to postpone the elections, as requested by GBA authorities, lies with the Supreme Court.
The Supreme Court had directed the Karnataka government and the State Election Commission to conduct Bengaluru local body elections by June 30.
On Friday, the SEC held a consultation meeting with the GBA Chief Commissioner and commissioners of the five city corporations regarding the election schedule, as per the provisions of the GBA Act.
“During the meeting, I informed GBA officials that only the election date has to be fixed, as all other measures and formalities for conducting the polls have already been completed,” Sangreshi said.
“They requested the Commission to consider factors such as rains, exams, census work, SIR, and manpower shortages while fixing the date and sought additional time,” he added.
Speaking to reporters after the meeting, he said, “I told them this meeting was not for seeking time. Elections to the five corporations under the GBA must be held before June 30, as directed by the Supreme Court, and a compliance report must be submitted to the court. I do not have the power to postpone the elections as requested.”
The Supreme Court has already given a “final opportunity,” and both the SEC and the government must comply with its directions, the State Election Commissioner said.
He asked GBA officials to suggest suitable dates between June 14 and June 24.
“While stating that they are ready for elections, the officials highlighted operational challenges, including manpower shortages. However, I have informed them that the elections will have to be held between June 14 and June 24. After a week, I will announce the final date,” he said.
Reiterating that he does not have the power to postpone the elections, Sangreshi said the authority rests with the Supreme Court, and elections must be conducted as scheduled.
“We have consulted the GBA as per the rules. It is up to them to suggest a date within the given window. If they need more time, they must approach the court. Our responsibility is to fix the date and complete the polls before June 30,” he said.
The matter regarding manpower and other concerns raised by GBA officials is already before the Supreme Court, and the State Election Commission has also filed a petition in this regard. The case is yet to be heard.
“Since the matter has not come up for hearing, the earlier order remains binding. Therefore, preparations are underway,” he added.
The tenure of the previous elected body under the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) ended on September 10, 2020, and since then, a government-appointed administrator has been managing its day-to-day affairs.
Bengaluru was divided into five municipal corporations—Central, East, West, North, and South—under the Greater Bengaluru Authority in September 2025, replacing the BBMP.
Sangreshi had earlier said that elections to the five corporations would be conducted using ballot papers instead of Electronic Voting Machines.
This follows the Congress government’s decision last September to recommend the use of ballot papers in all future panchayat and urban local body elections, citing concerns over declining public confidence in EVMs.
The state government subsequently enacted the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Act, 2026, paving the way for the use of ballot papers in local body elections.
