Amid possessions of anti-competitive practices in beer sales, the Competition Commission of India (CCI) has ordered a probe against the Tamil Nadu State Marketing Corporation Limited (TASMAC), following a complaint of favoring select breweries, reported Bar and Bench.
CCI adopted its order on March 25 under Section 26(1) of the Competition Act, accusing state-run alcohol distribution companies of favoring select breweries and restricting consumer choices.
“In view of the facts and circumstances of the case, the Commission is on the surface that Tasmack appears to have violated certain beers in Tamil Nadu by restricting access to certain brands of beers in Tamil Nadu, in violation of Section 4(2)(c) of the Act, under the material of the Act, the material appears to be conducted by the media and investigated in the media. (‘DG’),” the order said.
Some brands are ignored
Prabakaran claims Tasmac stocks brands such as the SNJ 10000 and the British Empire from SNJ Breweries and Kals Breweries while ignoring other brands.
Tasmac has a monopoly on the state’s liquor retail industry through its more than 5,000 stores.
60-day investigation by the Director-General
CCI has directed its Director-General to conduct a 60-day investigation to determine whether the company abuses its dominance.
Bar and Bench report said DG will review procurement policies, brand sales data and manufacturer agreements.
Madras HC instructs ED not to continue further
Last week, the Madras High Court directed the Enforcement Bureau (ED) not to conduct a search based on its recent search at the headquarters of state-owned liquor retailers in Chennai.
HC also instructs ED to produce FIR and Law Enforcement Case Information Report (ECIR) and any other materials it relies on TASMAC.
ED had earlier stated that “multiple violations” were found in the operation of TASMAC, including “manipulation” and “undivided” cash transaction value during the tender process. ₹Rs 10 billion through the brewery company.
