CCI to file case against Aamir Khan

Oct 17: CCI (Competition Commission of India), which is a fair trade regulating organisation, has said that it will act against 9 defaulters who have not paid the penalties levied on them. The list includes Aamir Khan, two film producers associations and six others.

While publishing the list of defaulters, CCI told that the total amount of penalty sums up to Rs. 2.17 crores and has been pending for the last two years. In these two years, neither any appeal has been filed by the petitioners nor has any appeal been rejected by CCI.

On May 25th 2011, an order was passed against 27 film producers in a case relating to anti competition practices by film makers. The order was also passed against Aamir Khan, who is both an actor and a producer. The penalty subjected to Mr. Perfectionist was Rs. 1 lakh. The order was filed by CCI post a complaint filed by FICCI – Multiplex Association of India.

The other people or organisations included Telangana Telugu Film Distributors Association, IATA Agents Association of India, Andhra Pradesh Film Chamber of Commerce, All India Organisation of Chemists & Druggists and Film Distributors Association, Kerala. Among the nine defaulters, All India Organisation of Chemists & Druggists has been asked to pay the highest penalty of Rs. 1.47 crores. Andhra Pradesh Film Chamber of Commerce has to pay Rs 12.89 lakh, Telangana Telugu Film Distributors Association and IATA Agents Association of India have to pay Rs 1 lakh each as penalty. A. Ganesh and K. Manju have to pay penalties of Rs 26 lakh each. Film Distributors Association of Kerala has to pay Rs 1.27 lakh and Chemists & Druggists Association of Goa has to pay Rs 1.02 lakh. CCI has told that it will take necessary steps to recover the penalty amount from the entities. CCI spokesperson said, “CCI could initiate prosecution under Section 42(3) of the Competition Act for not complying with the orders of the Commission and follow-up reference to Income Tax Department could be made for action on recovery certificates already issued to these entities.”

Aamir Khan production house known as Aamir Khan Productions was charged in 2011 for behaving like a cartel. Even late Yash Chopra's Yashraj Films and Shah Rukh Khan's Red Chillies Entertainment were fined in 2011. CCI spokesperson said that the actions by film producers and distributors were in ‘nature of cartel like conduct'.