New Delhi: After imposing a 420.26 crore penalty on Hyundai Motor India Ltd (HMIL) on 27 July, the Competition Commission of India (CCI) has decided against enforcing it until a court decides on an appeal filed by the Indian unit of the Korean automaker Hyundai Motor Co.

This comes in the wake of Hyundai initiating contempt proceedings against the CCI, accusing the antitrust regulator of violating a 13 April order by the Madras high court that the CCI shall not pass any order in the proceedings until the court decides on an appeal filed by the automaker.

G. Rajagopalan, appearing for the CCI, submitted that the order passed by the regulator was on account of a communication gap and would not be enforced till the disposal of the appeal filed by Hyundai.

The antitrust regulator last year imposed a penalty amounting to 2,544.64 crore on 14 carmakers for restricting sale of spare parts in the open market.

Hyundai challenged the jurisdiction of the CCI before the Madras high court and was granted a stay.

Thereafter, the writ filed by Hyundai was dismissed and an appeal was filed. Admitting the appeal, a division bench of the high court directed Hyundai to participate in proceedings before the CCI but restrained the regulator from passing any final order until the court delivers a final verdict.