SC seeks CCI response in Kerala State Beverages Corp case

Synopsis

The Supreme Court has sought responses from the Competition Commission of India and others. This follows an appeal by the Confederation of Indian Alcoholic Beverage Companies against KSBC. The industry body alleges unfair trade practices and discrimination in the liquor market. KSBC is accused of unilaterally fixing prices and levying additional charges. The court will hear the matter again on September 23.

New Delhi: The Supreme Court on Thursday sought response from the Competition Commission of India and others on the Confederation of Indian Alcoholic Beverage Companies' appeal (CIABC) against the Kerala State Beverages (Manufacturing and Marketing) Corporation's (KSBC) alleged abuse of dominant position in the liquor market through a series of unfair and unilateral trade practices, including unilaterally fixing purchase prices, discriminating between government and private manufacturers, levying additional charges in Kerala.

A bench of Justices Sanjay Kumar and Sanjeev Sachdeva issued notice and posted the matter for further hearing on September 23.

The industry association, representing alcohol beverage companies in India, alleged that KSBC was giving preferential treatment to Travancore Sugar and Chemicals, a government-owned distillery, for wholesale procurement and distribution of branded alcoholic beverages in the state. The best selling liquor in Kerala is rum, where Travancore Sugar supplies "Jawan Rum", senior counsel Amit Sibal argued on behalf of CIABC.