NCLAT Upholds CCI Order, Rebuffs TAAI's Anti-Competitive Claims

The NCLAT confirmed a CCI decision dismissing claims by the Travel Agents Association of India regarding anti-competitive practices. TAAI had contested the government's exclusive use of specific travel services, but the tribunal maintained that government departments are not enterprises, thus rejecting TAAI's allegations.

In a pivotal decision on Friday, the National Company Law Appellate Tribunal (NCLAT) upheld a previous order by the Competition Commission of India (CCI) that rejected allegations of anti-competitive practices by the Travel Agents Association of India (TAAI). The claims centered on the government's use of specific agencies for travel services.

A three-member bench imposed a penalty of Rs 5 lakh on TAAI, concluding that the Government of India cannot be deemed an enterprise as defined under the Competition Act. The contention arose from a 2006 directive mandating government employees to use services from state-backed agencies for official travel.

The CCI dismissed TAAI's plea in May 2020, citing that the Department of Expenditure is not an enterprise engaged in commerce. NCLAT reinforced this, highlighting that the matter lacks merit and burdening TAAI with penalty costs, payable within 15 days.

(With inputs from agencies.)