Millennium Post

CCI rejects plea against chit fund

The Competition Commission has rejected a plea against chit fund firm Shriram Chits Ltd for allegedly abusing its dominant market position.

The CCI order, released on Friday, follows a complaint filed by a chartered accountant Sreeram Murthy, who had invested in chit funds of Shriram Chits.

While Murthy had alleged that Shriram Chits ‘was abusing its dominance by misleading the consumers through various anti-competitive practices in contravention of’ the Competition Act provisions, CCI said that the matter did not fall under its jurisdiction.

The CCI order said, ‘The opposite party [Shriram Chits] may be a large chit fund company in the State of Andhra Pradesh and may be dominant. ‘However, mere dominance per se cannot be acted against by the Commission. To invoke the jurisdiction of the Commission a prima facie abuse or misuse of the dominance is to be shown...’ it added.
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