Mr. R.K. Anand, Member—K.K. Bhardwaj addressed a complaint to the Union Industry Minister alleging that certain manufacturers of shoes were making high profits resulting in exploitation of the consumers. The complaint was sent to the DG for investigation. DG after investigation has submitted his Preliminary Investigation Report in respect of two manufacturers, namely, Reebok India Company and Bata India Limited stating that these footwear manufacturing Companies are indulging in restrictive trade practices within the meaning of Section 2(o)(ii) of the MRTP Act, 1969 and the same have the effect of imposing unjustified costs on the consumers and therefore, a notice of enquiry may be issued.

2. The two PIRs were listed for consideration and appropriate orders. Learned Advocate for the DG was heard and the PIRs were perused. In the PIR in respect of Bata India Ltd., the standard cost of manufacturing shoes and their wholesale and maximum retail prices have been indicated. It has been shown therein that the maximum retail prices are much higher than the standard cost of different footwear. However, it has been also indicated on the basis of the reply received from Bata India Ltd.,