NEW DELHI:The Competition Commission of India (CCI) is likely to take a final decision on allegations made against five air carriers over fuel surcharge for cargo transportation.
IndiGo, Jet Airways, SpiceJet, GoAir and Air India have been probed by the CCI on the allegations made way back in 2013.
The complaint - Express Industry Council of India - alleged that the five carriers acted as a cartel in introducing fuel surcharge for transport of cargo and CCI had ordered an investigation by the Director General (DG) after finding prima-facie evidence of competition norm violations.
The DG, in its report submitted to the CCI in February this year, concluded that there was no sufficient evidence of cartelisation in the case. Now, the regulator is awaiting responses from the concerned parties.
Details of the case have been mentioned by IndiGo in the draft papers filed with Sebi for raising up to Rs 2,500 crore through an initial public offer.
“The DG has submitted his investigation report dated February 4, 2015 with the CCI wherein it was concluded that there is no sufficient evidence to conclude the existence of a cartel,” under certain sections of the Competition Act, IndiGo said.
It added that the complainant has filed objections to the findings of the investigation report and a hearing is scheduled to be held later this month.
“CCI vide its order dated February 19, 2015 directed the informant and opposite parties to appear on April 1, 2015. The informant has filed objections to the investigation report on April 23, 2015 and the matter is now fixed for July 23, 2015 for filing of objections/rejoinder and arguments,” IndiGo said in its Draft Red Herring Prospectus (DRHP).
Among others, the complainant had also alleged that the five carriers were not reducing the fuel surcharge on cargo transportation even when there was a decline in fuel prices.