Tyre sector order in next 10-15 days; scanner on newer sectors like healthcare: CCI chief Ashok Chawla

Three months after shaking up the cement sector by slapping a penalty in excess of Rs 6,000 crore on 11 cement firms, the country's monopoly watchdog, the Competition Commission of India ( CCI), is on the brink of passing yet another eagerly awaited order on the tyre manufacturing sector. In an exclusive interview with ET NOW, CCI chairman Ashok Chawla said, "We are now in the stage of finalising the order. So, while it's difficult to give an exact timeline, I believe we should be able to put out the order in the next 10-15 days."

In the past, the CCI has probed sectors ranging from entertainment to aviation. Chawla said, "CCI is presently in the process of looking at newer activities like the health sector and the health infrastructure sector in terms of new technologies. (This) is a dynamic and ongoing process." But it's the real estate sector that is facing the brunt of an extensive nationwide scrutiny by the CCI following complaints of collusion.

Chawla elaborated on the realty probe and said, "Basically, what is being alleged is that the terms of the agreement between the developer and buyer are one-sided and the terms are loaded in favour of the builder. The commercial clauses are such that the buyer ends up carrying a commercial liability disproportionate to the transaction and certainly more than what the builder has to bear. For instance, if there is a delay on part of the buyer in paying the builder, the buyer has to pay a certain amount of interest to the builder. But if the project gets delayed and the contract is provided for compensation to the buyer, the interest paid by the builder will be much lesser."

The CCI is also waiting for responses from auto companies and OEM's which were found guilty of anti-competitive practices in its initial investigation report. "The report brings out the fact that there are anti-competitive practices in terms of spare parts; the way they are tied in terms of where they should be brought from and in terms of their pricing. Auto companies have to come up with their defence and after that the CCI will decide the matter," Chawla added.

Chawla is also quick to point out that the CCI is ready to provide any further inputs or clarification to the COMPAT (Competition Appellate Tribunal) which is hearing appeals filed against the CCI's order on the cement sector. In a recent interim order, the COMPAT has directed the CCI to defer penalties on cement firms till October 11.