CCI rejects plea against chit fund operator over abusing dominant market position

While Murthy had alleged that Shriram Chits “was abusing its dominance by misleading the consumers through various anti-competitive practices in contravention of” the Competition Act provisions,CCI said that the matter did not fall under its jurisdiction.

The CCI order said,”The opposite party (Shriram Chits) may be a large chit fund company in the State of Andhra Pradesh and may be dominant.

“However,mere dominance per se cannot be acted against by the Commission. To invoke the jurisdiction of the Commission a prima facie abuse or misuse of the dominance is to be shown…” it added.

Murthy had approached the CCI after a dispute with Shriram Chits on settlement of payments between them.

He had alleged that Shriram Chits has auction turnover of around Rs 3,000 crore and is stated to be the largest in the business in India.

Murthy had extensive chit transactions and failed to make payments to the company,CCI observed.

“The relief sought by the informant (Murthy) is to direct the opposite party to settle the issues amicably with him which does not fall within the purview of the Act.

“There is no competition concern raised by the informant. The informant has already suffered various court decrees and cannot approach this Commission to give directions to opposite party for settling monetary claims,” CCI said.

According to the CCI,these transactions have been from 1993 onward and the chit fund company had filed various civil suits in courts and obtained decrees against informant in 25 or more cases.

“In the light of the above facts and situation,the Commission finds that no prima facie case is made out against the opposite party (Shriram Chits). Therefore,the matter is hereby closed under section…” CCI said.