ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued a list of sugar mills on which penalties have been imposed under the split-decision taken by the commission.
According to the CCP order released here Friday, the penalties imposed on some of the major sugar mills included total penalty of Rs 50 million on JDW-I, JDW-II and JDW-III sugar mills, Rs 50 million on Layyah and Safina Sugar mills, Rs 50 million on Hunza-I and Hunza-II sugar mills, Rs 50 million on Al-Moiz-I and Al-Moiz-II Sugar Mills, Rs 50 million on Chashma-I and Chashma-II Sugar Mills, Rs 50 million on Chanaar Sugar Mills, Rs 50 million on Fatima Sugar Mills and penalty of Rs 50 million has been imposed on Indus Sugar Mills.
Among others, the CCP has imposed penalty on Tandlianwala Zamand Sugar Mills of Rs 50 million; Al-Abbas Sugar Mills Rs 50 million; Mirpurkhas Sugar Mills Rs 50 million; Sanghar Sugar Mills Rs 50 million; Shahmurad Sugar Mills Rs 50 million; Al-Noor Sugar Mills Rs 50 million; JK Sugar Mills Rs 615,115,176; Faran Sugar Mills Rs 50 million and Mirpurkhas Sugar Mills has been subjected to Rs 50 million penalty.
The CCP has also issued a list of sugar mills whose annual turnover figures are not available with the commission.
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The order issued by the CCP here Friday, imposed a fine of Rs 300 million on the Pakistan Sugar Mills Association (PSMA), as the maximum penalty of Rs 75 million was imposed for each of four violations committee by the Association.
On the other hand the PSMA has issued a press release stating that the CCP decision was not a final order as two members did not adhere to the point of view of the Chairperson, and voted in favour of the sugar mills and the PSMA.
The PSMA has said that the chairperson of the CCP does not have the powers to cast a second vote in the proceedings as per the Competition Act. Two Members of the CCP have not issued any order on imposition of fine against the PSMA or member sugar mills.
The CCP decision announced is not a majority or unanimous order on the main allegations of anticompetitive behaviour against PSMA and its member sugar mills and nor on the issue of imposition of fines, PSMA added.
The CCP’s order said that a full four Member Bench of the Commission was constituted in the instant matter, comprising of, namely: Rahat Kaunain Hassan (Chairperson) and three Members: Shaista Bano, Bushra Naz Malik and Mujtaba Ahmad Lodhi. All four Members of the Commission are unanimous in their view and have arrived at unqualified consensus on background facts, formulation of issues, determination of preliminary/technical objections, the determination of the relevant market and the spill-over effect, and the determination of
Issue VI (ceasing of sugarcane crushing) as addressed in the opinion of Rahat Kaunain Hassan and Mujtaba Ahmad Lodhi dated 6 August 2021. However, two Members, Shaista Bano and Bushra Naz Malik, have recorded a different opinion dated 12 August 2021 on other Issues, thus, the Commission was faced with a deadlock situation. Therefore, having duly considered the overall purpose and intent of the Act, the attending public policy framework and consideration and the general public interest that the Act seeks to protect and enforce, the Chairperson exercised her second and casting vote as envisaged under the Act to break the deadlock. This is the first time the Commission has passed a split decision, CCP order added.
Copyright Business Recorder, 2021
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