Fair trade regulator CCI today said it will initiate recovery proceedings against cine star Aamir Khan,two film producers associations and six others for failing to pay penalties imposed on them.
These penalties,totaling Rs 2.17 crore,are pending for up to over two years despite there being no appeal filed or appeal having been dismissed,CCI said while publishing a list of these defaulters.
Pending penalty against Aamir Khan stood at Rs one lakh only,which was imposed as part of an order passed against 27 film producers on May 25,2011 in a case related to anti-competition practices by film makers.
This order was passed pursuant to a complaint filed with the Competition Commission of India by FICCI Multiplex Association of India.
Besides Aamir Khan,the fair trade watchdog said “appropriate action” against eight other entities would also be taken.
These include IATA Agents Association of India,Telangana Telugu Film Distributors Association,Film Distributors Association,Kerala,and Andhra Pradesh Film Chamber of Commerce.
Among the nine entities,All India Organisation of Chemists & Druggists has to pay the highest penalty of little over Rs 1.47 crore,according to the regulator.
CCI,which keeps a check on any unfair trade practices at the market place,said it has decided to take suitable and appropriate steps to recover unpaid penalties from parties that have been imposed under the Competition Act,2002.
“CCI could initiate prosecution under Section 42(3) of the Competition Act for not complying with the orders of the Commission and follow-up reference to Income Tax Department could be made for action on recovery certificates already issued to these entities,” it said.
Andhra Pradesh Film Chamber of Commerce is to pay Rs 12.89 lakh,while IATA Agents Association of India and Telangana Telugu Film Distributors Association,have to pay Rs 1 lakh each as penalty.
Two individuals — K Manju and A Ganesh — each have to pay penalties of Rs 26 lakh.
Film Distributors Association,Kerala,is yet to pay Rs 1.27 lakh fine while the penalty to be shelled out by Chemists & Druggists Association of Goa is Rs 1.02 lakh.
In 2011,CCI had imposed a penalty of Rs one lakh each on 27 film producers including Aamir Khan,associated with production house Aamir Khan Productions,on charges of behaving like a cartel.
Other production banners that were fined included Shah Rukh Khan’s Red Chillies Entertainment and late Yash Chopra’s Yashraj Films.
The main issue was related to failure of negotiations between multiplex owners and film producers over payment matters. In 2009,film producers/distributors had also gone on a strike.
CCI’s Director General had concluded that the actions by the film producers and distributors were in “nature of cartel like conduct” with a view to control the distribution and exhibition of films in multiplexes and to force the multiplexes into agreeing for higher revenue.