Now Reading: Supreme Court seeks CCI reply in Kerala liquor case
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Supreme Court seeks CCI reply in Kerala liquor case
The Supreme Court on Thursday sought the Competition Commission of India's response to an appeal by the Confederation of Indian Alcoholic Beverage Companies against the Kerala State Beverages Corporation. The industry body…
The Story in Brief
The Supreme Court on Thursday sought the Competition Commission of India's response to an appeal by the Confederation of Indian Alcoholic Beverage Companies against the Kerala State Beverages Corporation. The industry body alleges KSBC has abused its dominant position by favouring state-owned Travancore Sugar and Chemicals Ltd, maker of Jawan Rum, through unilateral price fixing and discriminatory terms.
The CCI had closed the case in 2021 for lack of evidence of abuse. The NCLAT upheld that decision in May 2026, ruling that the preference was state policy and had not harmed competition or consumer choice. A bench of Justices Sanjay Kumar and Sanjeev Sachdeva issued notice and listed the matter for September 23.
The Indian Opinion
Two competing narratives are at play: that a state monopoly inevitably stifles private industry, and that a state can legitimately promote its own brands. The facts so far show no concrete evidence of market exit or consumer harm, the NCLAT pointed that out. But the Supreme Court must now test whether KSBC's practices, especially delayed payments and one-sided tender conditions, cross the line from policy favouritism into abuse. That distinction will decide the case.
Sources (2): barandbench.com, legal.economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
