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NCLAT junks allegations of anti-competitive agreement between Centre and travel agencies
Update / Judgement Date
25 Oct 2024
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Author
Team — WCP Legal Desk
Reading Time
1 min read
NCLAT junks allegations of anti-competitive agreement between Centre and travel agencies: The National Company Law Appellate Tribunal (NCLAT) dismissed an appeal by the Travel Agents Association of India (TAAI) challenging the Competition Commission of India’s (CCI) order dismissing allegations of anti-competitive practices by the Department of Expenditure (DoE). TAAI alleged that DoE’s office memorandum mandating government employees to use two travel agencies (Balmer Lawrie and Ashok Travels) for official trips violated the Competition Act. The CCI had previously held that DoE is not an ‘enterprise’ under the Competition Act, as its principal activity is policy-making, not business. NCLAT upheld this view, noting that DoE’s internal communications do not constitute a business activity. The Tribunal also imposed a ₹5 lakh penalty on TAAI for repeatedly pursuing litigation against DoE over the same memorandum, which had been previously challenged and dismissed.