InvestorQ : Why has there been a fine of Rs.200 crore on the Maruti and will it impact the stock price?
Dilmini Mercia made post

Why has there been a fine of Rs.200 crore on the Maruti and will it impact the stock price?

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Dawn Cherian answered.
4 months ago
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This penalty of Rs.200 crore has been imposed on Maruti by the Competition Commission of India or CCI, which is the nodal agency to prevent businesses from indulging in anti-competitive practices. The fine of Rs.200 crore has been levied by the CCI on Maruti Suzuki for forcing dealers to limit the discounts offered on cars. In fact, it is alleged that Maruti had even warned dealers of action if they gave discounts more than what Maruti approved.

This has been classified as an anti-competitive practice by the CCI. These allegations of super-profits were under investigation since 2019. The CCI has asked Maruti to deposit these unlawful gains within 60 days. Maruti has in the past justified such limits as a buffer in on the face of rising cost of inputs in the auto industry, which has been a major challenge. Maruti has raised prices of cars thrice in the year 2021, to offset the input cost spike.

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