1. M/s. Faran Sugar Mills Limited (hereinafter referred to as the `undertaking'), was directed by the Monopoly Control Authority (hereinafter referred to as the `Authority'), vide its Order, dated May 10, 2006 (hereinafter referred to as the `Order'), to release 8.33% of its production every month, commencing form October 2005. The undertaking was, therefore, required to release 58.31% of its production by April 30, 2006 (8.33% x 7 months). Instead it released 43.03%, which was 15.28% less than the prescribed percentage and thus it did not comply with the Order of the Authority.
2. The Authority, therefore, issued a Hearing Notice to the undertaking on June 17, 2006, under Section 19 of the Monopolies and Restrictive Trade Practices (Control & Prevention)
2. Ordinance 1970 (hereinafter referred to as the `Ordinance'), to show cause as to why appropriate action under Section 19 of the Ordinance may not b e taken against it.
3. On the date of hearing, Mr. Arif Amiwala, appeared before the Authority, as an authorized representative and argued the case. He submitted that the undertaking started crushing from November 30, 2005 and thus its sugar year may b e considered as December -- November. He further submitted that the undertaking released 48.13% of its production, which is above the required percentage @ 8.33% from December 2005 to April 2006, i. e. 41.65% of production. As per PSMA's statement, the undertaking started crushing from 30.11.2005 and had a "carry over stock of 8915 tons from the previous year. The Authority, therefore, decided that it should have released its stock @ 8.33% per month from October 2005 onwards. It should have released 58.31 % till end April 2006 (8.33% x 7 months). The undertaking, however, released 43.03% only.
4. The Authority, after considering the facts of the case, submissions of the authorized representative of the undertaking and the fact that it released less sugar by end April 2006, decided, in terms of the powers vested under Section 19 of the Ordinance, to impose a penalty of Rs 100,000 (Rupees One Hundred Thousand), which shall b e deposited by it under the relevant head of account within seven days from the date of receipt of this Order. The undertaking shall also release at least 8.33 % of its production for the ensuing months.