India raids liquor companies in price fixing probe -sources (updated)

Som Distilleries and Breweries

27/10/2021 09:23

(Adds details)
    By Aditya Kalra and Abhirup Roy
    NEW DELHI, Oct 27 (Reuters) - India's antitrust watchdog on
Wednesday raided the offices of Associated Alcohols & Breweries
 ASAL.NS  and Som Distilleries as part of an investigation into
alleged price fixing in liquor products, two sources with direct
knowledge of the matter said.
    The Competition Commission of India (CCI) officials were
conducting search and seizure operations across several cities
and the case is about the companies allegedly violating
anti-trust laws by colluding on prices while seeking necessary
regulatory approvals from states, the sources added.
    The investigation is looking at price fixing of so-called
country liquor, or low-priced locally made alcohol, the sources
added.
    India has strict regulations for the alcohol sector. Most
states individually regulate alcohol pricing and the companies
need to submit and get prices approved every year by the local
authorities. 
    The CCI did not respond to a request for comment. E-mails
and phone calls to Associated Alcohols and Som Distilleries went
unanswered.
    Further details of the case and the raids were not available
from the CCI as the agency typically does not make public
information on its investigations.
    Associated’s website says it is the leading supplier of
liquor to the government of Madhya Pradesh for sales in the
state. SOM Group, which includes Som Distilleries, has a
portfolio of brands that includes spirits and beer products.

 (Reporting by Aditya Kalra in New Delhi; Editing by Sanjeev
Miglani and Christian Schmollinger)
 ((aditya.kalra@tr.com; +91-11-49548021; Twitter @adityakalra;))