Multiple tyre companies’ Indian offices were raided on Wednesday by India’s antitrust institution after they were accused of breaking the competitions rules and regulations.
According to multiple sources, these raids were being organized by the Competition Commission of India. It is a government organisation that makes sure that all competitions in India are held in a free and fair manner. It has been in operations for the past nineteen years.
Both Apollo and Ceat Tyres confirmed that their offices were raided in the name of a routine enquiry. Both companies have denied any violations of and rules and regulations from their end.
Apollo tyres announced that they will be complying with the investigation and have revealed all the details that the anti-trust body has requested for.
They even urged that the company would never break any rules for their personal gain and will. They take the government orders very seriously and have always honoured the law to the highest level.
After that Ceat Tyres also announced about the visit that paid to their offices by government officials. They had told them that it was a routine enquiry. They have also said that they will be complying with the authorities and the entire process. According to sources, raids were happening in multiple offices of CEAT tyres all across India.
Ceat Tyres have also rejected all accusations of wrongdoing.
Continental AG Tyres, a German based brand was also visited by the officials.
Even though neither any wrongdoings nor punishments has still not yet been confirmed, it still has affected their performance. Ever since the so-called routine enquiry, the companies’ valuations have fallen. The stock price of Ceat tyres has fallen by 2.2% in a day, while for Apollo Tyres, that number was at 3% on the Mumbai Stock Exchange. Both of these companies had recently seen a steady growth in the stock price.
Continental AG Tyres which is yet to crack into the top of the Indian market saw a fall of 3.5% of their stock price on the Frankfurt Stock Exchange as of yesterday.
The reason for the enquiry still hasn’t been officially revealed, but the companies were accused of illegal trade practice, and manipulated multiple bids when they were selling tyres for the government’s vehicles and the public transport services like buses to the state of Haryana.
According to sources, an investigation took place two years ago after a complaint by the Haryanvi government. Maybe the case has been opened up again.
