The Supreme Court on September 26 restored the finding of the Competition Commission of India (CCI) which imposed penalties on the Kerala Film Exhibitors Federation and its officials for indulging in anti-competitive practices by denying the screening of Tamil and Malayalam films in cinemas. A two-judge bench set aside the judgement of the Competition Appellate Tribunal (COMPAT) dated February 4, 2016, and restored the finding of the CCI dated September 8, 2015.
The apex court said, the directions to KFEF to not associate with its president and general secretary for its affairs including administration, management and governance for a period of two years shall commence from December 1.
Complaints were filed before the CCI by Crown Theatres alleging anti-competitive activities by KFEF and its office-bearers. It was alleged that KFEF and its president, P.V. Basheer Ahamed, took steps to ensure that whenever new Tamil and Malayalam films were released, they would not be screened at Crown. The CCI found the allegation to be true and imposed penalties on KFEF and its two office-bearers — president Ahamed and general secretary M.C. Bobby. Finding non-compliance later, CCI directed the office-bearers and KFEF not to associate with each other for a period of two years.
Aggrieved by the order, KFEF and its office-bearers moved the COMPAT which set aside the penalty and directions only insofar as Ahamed and Bobby were concerned. The order of COMPAT was challenged by the CCI before the top court.
