Carlsberg India and All India Breweries Association were penalized with a total of Rs.873 for cartelization

Case: Pawan Jagetia v CCI

United Breweries Ltd, Carlsberg India, and All India Breweries Association have been penalized with a total of Rs.873 crore by the Competition Commission of India (CCI) for cartelization.

Justice Rakesh Kumar and Technical Member Dr. Ashok Kumar Mishra concluded that the appellant had already admitted to their involvement in the cartel in their leniency application.

Concerning the production, marketing, distribution, and sale of beer in India, Crown Beers India, and SABMiller India made an application alleging cartelization against the appellants.

The appellants argued before the NCLAT that the CCI's order was liable to be set aside since it found them guilty solely based on their leniency application. It was argued that leniency applications must be examined at the time of imposing a penalty and cannot be used to initiate an investigation.

According to the NCLAT, a lesser penalty application is similar to an admission of guilt in a cartel under the Competition Act and the Code of Criminal Procedure.

It further noted that the penalty amount was reduced based on the leniency request. Therefore, the appellant's right to appeal the CCI order on merits was waived.