Competition Comm imposes Rs 17 cr fine on JTEKT Corp, its Indian subsidiary

The Competition Commission of India has imposed more than Rs 17 crore fine on Japan's JTEKT Corp and its Indian subsidiary for cartelization with NSK Ltd in the supply of electric power steering systems to automotive manufacturers. The regulator decided not to impose any penalty on NSK and its Indian subsidiary as the company had submitted the evidence about the cartel.

The case was taken up by the watchdog after NSK approached it under lesser penalty regulations. A detailed probe revealed that NSK and JTEKT as well as their Indian subsidiaries -- RNSS and JSAI respectively -- indulged in cartelization in the EPS systems market for at least six years (from 2005 to July 25, 2011).

Electric Power Steering (EPS) systems is a kind of device that helps drivers to turn the wheels of the vehicle with ease. The entities indulged in unfair business practices by means of directly or indirectly determining the price and allocating markets, among others, as per the Competition Commission of India (CCI).

The CCI's probe covered the period till July 25, 2011, since Japanese Fair Trade Commission had conducted an on-site inspection of four Japanese companies including NSK and JTEKT, in connection with alleged cartelization in another product. In its order dated August 9, the CCI imposed a fine of Rs 17.07 crore on JTEKT and its Indian subsidiary JTEKT India Ltd (earlier known as JTEKT Sona Automotive India).

Besides, a total fine of Rs 31.34 lakh was imposed on JTEKT's seven officials. The penalty on the company was reduced by 50 percent under leniency provision as it was the second entity to approach the Commission after NSK.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)