MRTPC directs AIMTC to stay away from restrictive trade practice

New Delhi, Sep 4 (UNI) The Monopolies and Restrictive Trade Practices Commission (MRTPC) has issued a 'cease and desist' order against All India Motor Transport Congress (AIMTC), an association of motor transport operators in the country, directing it not to indulge in anti-competitive practices.

The order was given in the light of an October 1999 circular issued by AIMTC to its members asking them to increase the freight rate by minimum of 18 per cent and pass on the benefit of the raise to truckers on a pro-rata basis.

The case was first referred to the Director General of Investigation and Registration, who in his investigation report, had recommended enquiry against the Congress for alleged restrictive trade practices.

The respondent had pleaded before MRTPC that the circular was just an advisory and was issued on account of increase in diesel oil prices. It also said that 'fair competition' existed among its members and the same was not affected as a result of the suggestion of freight rate increase. It, however, could not prove its contentions.

Citing an earlier decision in a similar case between Bhiwadi Manufacturers Assiciation Vs Truck Operators Association, the MRTPC held the circular as restrictive trade practice terming it ''detrimental to the interest of consumers in general.'' The AIMTC was also directed to comply with the order within four weeks and file an affidavit of compliance to that effect within the same period.

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