Mahindra & Mahindra (M&M) announced that the Competition Commission of India (CCI) has published an order against fourteen Automobile companies including Mahindra & Mahindra and has imposed a penalty of 2% of the average annual turnover for the years 2007-08, 2008-09 and 2009-10. The amount of penalty imposed on Mahindra & Mahindra is Rs 2.92 billion.

The order relates to competition law proceedings initiated in 2011 which aimed at investigating the conduct of several leading Automobile companies in India for practices followed by these companies with respect to alleged restrictive covenants pertaining to supply of spare parts and other diagnostic tools in the aftermarket.

Besides the said penalty, CCl has also ordered the Automobile companies to undertake certain compliances within 180 days from the receipt of the order and has directed them to submit a report within 60 days of receipt of the order on the action initiated for compliance with the order.

The company furnished all information and clarification requested by the authorities in the context of the investigation.

The company aggrieved by this order proposes to appeal against it before the appropriate forum.

Shares of the company declined Rs 6.35, or 0.45%, to trade at Rs 1,400. The total volume of shares traded was 79,431 at the BSE (3.14 p.m., Tuesday).