Tata Motors gets orders from Monopolies and Restrictive Trade Practice Commission

Tata Motors is one of the leading automobile manufacturers in the Indian market. The company has just received a minor setback as they have been served a notice by the Monopolies and Restrictive Trade Practice Commission.

MRTPC has claimed that Tata Motors is guilty of adopting unfair methods to sell Tata Indica. They have served the company a ‘cease and desist order’. MRTPC chairman Justice BK Rathi and member MMK Sardan said in a statement that charging of the entire showroom price as booking amount including the sales tax, excise duty etc from applicants, was unjustified and “definitely prejudicial” to the interests of the customers.

This is related to the fact that the company managed to collect Rs 3216.45 crore by undertaking bookings for the cars, before the commencing of its production, in 1999. The people in charge observed: “The sales tax should be transferred to the government accounts immediately as and when it is realized.”

Tata Motors have confirmed that they have received the orders from the commission and they are looking into the matter. They have however said that while inviting the booking for the Indica car, they had never expected to receive the overwhelming response for its cars in view of other indigenous manufacturers.

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