Telangana HC Dismisses Dr Reddy’s Plea Against CCI

Justice Nagesh Bheemapaka held that judicial interference at this stage would amount to unwarranted intervention in an ongoing statutory inquiry.

The petition sought to quash the CCI’s May 31, 2024 order directing the company to furnish audited financial statements for FY 2021-22, FY 2022-23 and FY 2023-24, set aside the director general’s investigation report dated April 3, 2024, terminate proceedings in the 2012 case, and declare the absence of a judicial member in the Commission as unconstitutional.

The case arises from a 2012 complaint alleging anti-competitive practices involving pharmaceutical companies and trade bodies, including the All India Organisation of Chemists and Druggists. The director general’s report in April 2024 found 24 entities, including Dr Reddy’s, prima facie in violation of competition law.

Following the report, the CCI directed the company to submit objections and financial statements. Dr Reddy’s contended that it did not insist on no-objection certificates from trade associations for appointing stockists and argued that any engagement with such bodies was based on commercial considerations. It also claimed to be a victim of coercive practices and raised concerns over the absence of a judicial member in the Commission.

The court noted that the Competition Act provides a complete adjudicatory mechanism, including appeal before the National Company Law Appellate Tribunal, and held that issues relating to the investigation report and other substantive contentions must first be examined by the Commission.

Dismissing the petition, the court clarified that it had not expressed any opinion on the merits of the allegations and directed the company to comply with the CCI’s directions and participate in the ongoing inquiry.

The matter will now proceed before the Competition Commission for further consideration.

HC questions Metro kiosks on footpaths

The Telangana High Court on Wednesday questioned the legality of permitting commercial kiosks and stalls beneath Hyderbad Metro Rail stations on public footpaths and sought responses from Hyderabad Metro Rail Limited and government authorities.

Justice N.V. Shravan Kumar was hearing a writ petition filed by B. Akhil, alleging inaction by civic bodies on complaints seeking removal of encroachments near ESI Hospital and Ameerpet Metro Rail stations.

The petitioner contended that commercial outlets set up beneath the stations were obstructing pedestrian movement and affecting traffic flow. The court, after examining photographs, noted that the kiosks appeared to have been constructed on pavements earmarked for pedestrians under the master plan.

Observing that it had consistently directed authorities to clear encroachments from footpaths, the court said such installations could cause public inconvenience and hinder pedestrian access.

Counsel for HMRL submitted that the kiosks were permitted under non-fare revenue and asset monetisation initiatives in terms of GO Ms. No. 73 issued by the Municipal Administration and Urban Development Department on April 3, 2018. It was stated that approvals were granted by competent authorities and that the kiosks were located in designated areas without obstructing movement, with periodic inspections conducted.

Taking note of the submissions, the court said the issue required examination on whether such permissions could be granted in public spaces if they adversely affected commuters and pedestrians.

The court directed HMRL to place on record the relevant government orders, including GO 73, and adjourned the matter to June 17, 2026.

HC questions home dept repeated memos on hiking cinema ticket prices

The Telangana High Court has pulled up the home department granting permission to temporarily increase ticket rates for the recently released Telugu film Peddi.

Justice N.V. Shravan Kumar, hearing a contempt petition against home department principal secretary Shikha Goel, questioned the practice of permitting ticket price hikes through administrative memos despite existing court restraints.

Expressing dissatisfaction, the court noted a recurring pattern of issuing orders allowing higher ticket prices for major film releases. “This is the sixth or seventh memo issued by the home secretary enhancing the movie ticket prices despite a restraint order from the High Court. What is the point in issuing such memos?”

The judge observed that the home secretary had earlier given an undertaking that ticket prices would not be increased, but such hikes continued whenever big-budget films were released.

The court advised the government to address the issue through proper legal channels instead of issuing administrative orders that conflict with judicial directions.

It directed government counsel for home Mahesh Raje to inform the department to challenge the validity of GO Ms No. 120, home (General) Department, dated December 21, 2021, if it seeks changes in the existing ticket pricing framework.

HC raps govt over retirement dues

The Telangana High Court on Wednesday expressed serious concern over delays in disbursing retirement benefits to former employees and directed the state government to furnish comprehensive details within two weeks.

Hearing a batch of contempt petitions over non payment of dues, a bench headed by Justice Namavarapu Rajeshwar Rao questioned the government’s failure to honour its commitment to clear all pending benefits by April 9.

The court sought information on the number of retired employees who have received their dues and those still awaiting payment. It also directed the government to submit particulars of token numbers issued by the Finance Department to employees whose benefits remain pending.

Justice Rajeshwar Rao specifically asked why the principal secretary of the finance department had not ensured compliance with the assurance earlier given to the court.

Observing that a large number of retired employees continue to face hardship due to the delay, the bench ordered the authorities to place complete details on record, including the status of payments and token allocations.