CCI imposes Rs751.83cr penalty on United Breweries, fines certain individuals too; Stock dives over 3%

"We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law," United Breweries added.

Sep 27, 2021 12:09 IST India Infoline News Service

United Breweries
United Breweries has announced to stock exchanges that the Competition Commission of India (CCI) has imposed a monetary penalty of a whopping Rs751.83cr on the company besides imposing a penalty on certain individuals and a cease-and-desist order.

The announcement was made on September 24 after the stock exchanges sought clarification from the company about a news article in Outlookindia.com titled "CCI slaps Rs 873 cr fine on UBL, Carlsberg India, others for cartelisation in beer sale".

The article quoted PTI stated that CCI imposed penalties totalling over Rs 873 crore on United Breweries, Carlsberg India, All India Brewers'' Association (AIBA) and 11 individuals for cartelisation in the sale and supply of beer. In its 231-page order, which comes nearly four years after ordering a detailed probe, the Competition Commission of India (CCI) has also directed the companies, association and individuals to "cease and desist" from anti-competitive practices in the future.

Alhtough, United Breweries has not revealed the names of the individuals who also faced the CCI penalty.

Last week, on Friday, United Breweries said "this is to inform you that the CCI has now passed an Order under section 3 read with section 27 of the Competition Act, 2002 dated September 24, 2021, inter alia against United Breweries Limited imposing a penalty of Rs751.83cr besides imposing penalty on certain individuals and a cease-and-desist order."

"We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law," United Breweries added.

At around 12.13 pm, United Breweries was trading at Rs1556.15 per piece down by Rs50.35 or 3.1% on Sensex. The stock has touched an intraday high and low of Rs1593.60 per piece and Rs1536.75 per piece respectively. 

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