NEW DELHI, FEB 5: Fresh trouble has erupted for the board of directors of Maruti Udyog Limited (MUL). The Director General of Investigation and Registration (DGIR) under the MRTP Act has served show cause notices to the entire board of directors -- representing the Government of India and the Suzuki Motor Corporation -- for supressing and giving misleading information.MUL has been accused of giving wrong information to the DGIR which is investigating unfair trade practices in finance schemes run by automobile companies.
MUL has to reply to the show cause notice within 15 days of receipt. The DGIR had initiated investigation of finance schemes run by auto companies last year. When the DGIR was questioning Daewoo Motors, the company said that it was unfair to single it out for probe when its rivals were also running similar finance schemes. Then in November last year DGIR asked MUL to submit details about all its finance schemes. But MUL wrote back saying that the company had not launched any schemewhich offered disounted rate of interest to customers.
Daewoo then supplied the DGIR with a copy of a MUL letter addressed to Vice President Car Finance of Apple Industries, Mumbai as proof of the MUL scheme. The letter from MUL thanked Apple for participating in two incentive schemes announced by MUL. It also informed Apple about a new incentive scheme which was to run from January to March 1997. Based on this information, the DGIR served notices to the board of directors of MUL.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
