FedEx, UPS, DHL executives to face fresh scrutiny in India antitrust case
Allowing a complainant to interrogate companies is not common in Indian antitrust cases. It means the final findings of the antitrust investigation could change and create new challenges for the courier majors, and the case will be prolonged by several months, antitrust lawyers and government sources said.
Many foreign and domestic companies are bullish about the Indian courier and parcel delivery market, which is expected to grow 11% a year to $14.3 billion by 2030, bolstered by a boom in online shopping, research firm Mordor Intelligence says.
In December, Reuters reported the Competition Commission of India (CCI) found "no evidence" of courier firms sharing commercial information amongst themselves. The 2022 cartel case, whose details remain confidential in line with rules, was triggered when the Federation of Indian Publishers alleged collusion on prices and discounts by delivery firms.
The CCI has now found merit in a complaint by the publishers' group which argued it must be allowed to cross-examine the delivery company executives as investigators only relied on oral submissions to give the companies a clean chit.
The federation "has demonstrated sufficient cause establishing necessity and expediency of conducting such cross-examination," the CCI noted in a May 28 internal order that was reviewed by Reuters.
The order said the executives to be questioned were Subhasish Chakraborty, Managing Director of India's DTDC Express; R.S. Subramanian, Managing Director of DHL Express India; Suvendu Choudhury, a vice president of FedEx in India; Percy Avari, general manager of Aramex in India, and Abbas Panju, India managing director of UPS Express.
None of the executives responded to requests for comment.
DHL said in a statement it operates in full compliance with all laws and is "cooperating fully with the CCI", but could not comment on specifics.
The CCI, as well as other companies - DTDC, U.S.-based FedEx and UPS, and Dubai's Aramex did not respond to Reuters queries.
The Federation of Indian Publishers also did not respond. It represents many Indian publishers like S.Chand and Rupa Publications, as well as some foreign groups like Pan Macmillan.
'RARE' CROSS-EXAMINATION
Sending the case back to the CCI investigators could become an irritant for the logistics industry, which has faced scrutiny since 2015, when France levied a $735 million fine on 20 companies, including FedEx and DHL, for secretly colluding to increase prices.
In India, cross-examination of companies by the complainant "is rare," said Gautam Shahi, a competition law partner at Indian law firm Dua Associates.
"Such cross-examination may reveal new facts and the conclusions of the earlier investigation report may come into question. It may change the direction of the case," he said.
The CCI investigations unit will now oversee the cross-examination proceedings in coming weeks and submit a report to top antitrust officials for a review, four sources familiar with the matter said. The Federation of Indian Publishers had alleged that courier companies acted together to determine charges, and also did not reduce the fuel surcharge they charged when jet fuel prices dropped.
The 202-page investigation report shared with the companies privately last year, and seen by Reuters this week, notes that 36 notices were sent to 15 courier firms during 2023-24 to gather details of their businesses, with UPS submitting the most responses - 13.
The CCI report concludes no email correspondence surfaced that showed "any collusive/concerted activities" among rivals.
The Federation of Indian Publishers has also successfully argued it wants to point out several anomalies in the earlier recorded statements of company executives, which were ignored by investigators, noted the CCI order that allowed the cross-examination. (Reporting by Aditya Kalra; Editing by Raju Gopalakrishnan)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
5 hours ago
- Gulf Today
India's warehousing demand records 32.1 million sq ft in H1
India's warehousing sector recorded a 42 per cent YoY surge in leasing volumes to 32.1 million sq ft across the top eight markets. This sharp rise in demand was led by the manufacturing sector, which saw a 71 per cent YoY growth in space uptake, accounting for 45 per cent of the total transactions, according to a survey by Knight Frank India. The report highlights the expanding role of India as a resilient, consumption-led, and manufacturing-driven economy whose industrial and warehousing market is benefiting from global trade realignments, government-led infrastructure and PLI investments. The increasing focus on higher grade facilities is also apparent. Transaction volumes reflect this shift as 63% of leased space was Grade A, up from 54% a year ago. Pan-India stock exceeded 500 million sq ft in H1 2025, with Grade A assets constituting 75% of new supply; vacancy dropped from 13.1% to 12.1% as supply lagged demand. The manufacturing sector emerged as the leading occupier during H1 2025, accounting for 45% of all transactions, a significant leap from prior periods. The sector's leasing volume reached 14.6 million sq ft, up 71% YoY in H1 2025. Notably, Mumbai and Pune together absorbed 44% of this space, led by prominent companies such as SKS Fasteners, RenewSys India, Godrej & Boyce, and Lupin. The shift of global supply chains, government support through PLI schemes, and India's competitiveness in energy, chemicals, automotive, and heavy engineering has positioned the country as a viable manufacturing destination. Interestingly, warehouses are also increasingly being retrofitted to industrial specifications to capitalise on the upswing in manufacturing activity. 3PL firms absorbed 8.7 million sq ft (27% share), rising 30% YoY, with Mumbai constituting 35% of the sector's transacted volumes followed by NCR, and Pune. E-commerce, while no longer the dominant sector, made a strong comeback with 3.3 million sq ft, a 61% increase over the previous year, now accounting for 10% of all activity. Transaction volumes grew across all cities except Kolkata. Mumbai led with 7.5 million sq ft, up 63% YoY. Pune and Chennai registered 76% and 135% growth respectively, led by strong manufacturing uptake. Ahmedabad and Bengaluru also recorded notable expansion. The Ahmedabad market reached a new half-yearly high of 3.6 million sq ft, driven by manufacturing firms which took up 48% of the area transacted. Similarly, Bengaluru also saw a 72% YoY surge, with 65% of leasing volume led by manufacturing sector occupiers—the highest share for the city since H1 2023. While the office market has almost reached the one billion sq ft mark, the warehousing and industrial market crossed 513 million sq ft in H1 2025, with 26.9 million sq ft becoming operational across the top eight markets. However, this trailed demand during the period, helped lower the pan-India vacancy to 12.1%, from 13.1% in H1 2024. Grade A properties constituted 75% of the new supply, reflecting developer response to occupier preference for high-specifications, ESG-aligned spaces. Grade A vacancy (12.9%) remained higher than Grade B (10.7%), due to speculative development in anticipation of demand. All primary markets recorded a 3–5% YoY rise in rental values, led by Mumbai at 4.7%, Kolkata at 4.6%, and Pune at 3.8%. Healthy occupier traction and the rising demand for efficient, automated logistics parks with sustainability features has kept rent growth buoyant across markets. A 71% YoY rise in manufacturing-led activity highlights the shift toward India as a preferred production hub amid global realignments. The evolving demand profile, backed by infrastructure build-up, policy stability, and rising investor interest in Grade A assets, signals a more mature and future-ready warehousing ecosystem, said Shishir Baijal, CMD, Knight Frank India. I have given my property for redevelopment and could not travel to India for business purposes. Can I give power of attorney to my uncle to handle this affair? Vivek Pandit, Sharjah. You can appoint your uncle to handle your affairs for this purpose. As the asset is undergoing redevelopment, you must also apply for its mutation before the concerned authority to have your name registered against the property under development. This is important especially at a time when the asset is undergoing redevelopment. I have invested in a project in Bengaluru. Is GST applicable to all types of residential projects? Please clarify. Deepak, Dubai. The impact of GST on residential property depends on the phase of construction, the location as well as the type of project. For example, GST impact will be observed more in case of new launches as compared to near completion projects. Similarly, projects in suburban areas will be more impacted when compared to city-centre projects.
Khaleej Times
10 hours ago
- Khaleej Times
Trump to 'think about' tariffs on Russian oil buyers in 'two or three weeks'
US President Donald Trump said on Friday he will not have to think of retaliatory tariffs on countries buying Russian oil right now but may have to "in two or three weeks." Trump has threatened sanctions on Moscow and secondary sanctions on countries that buy its oil if no moves are made to end the war in Ukraine. China and India are the top two buyers of Russian oil. The president last week imposed an additional 25 per cent tariff on Indian goods, citing its continued imports of Russian oil. However, Trump has not taken similar action against China. He was asked by Fox News' Sean Hannity if he was now considering such action against Beijing after he and Russian President Vladimir Putin failed to produce an agreement to resolve or pause Moscow's war in Ukraine. "Well, because of what happened today, I think I don't have to think about that," Trump told Fox News' Sean Hannity after meeting with Russian President Vladimir Putin in Alaska. "Now, I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now. I think, you know, the meeting went very well." Chinese President Xi Jinping's slowing economy will suffer if Trump follows through on a promise to ramp up Russia-related sanctions and tariffs.
Khaleej Times
a day ago
- Khaleej Times
India's Modi announces new defence system 'Sudarshan Chakra', tax cuts on Independence Day
Indian Prime Minister Narendra Modi urged the country on Friday to move towards more self-reliance, manufacture everything from fertilisers to jet engines and EV batteries, and vowed to protect farmers in the face of a trade conflict with Washington. With tariffs imposed on Indian exports by US President Donald Trump expected to hurt growth in the world's fastest growing major economy, Modi announced lower goods and services taxes (GST) from October, a move that could help boost consumption. He also announced India would set up a new defence system called 'Sudarshan Chakra'. He did not elaborate but a government statement said the system is aimed at neutralising enemy infiltrations and enhancing India's offensive capabilities. Indian defence and policy circles have informally referred to the Russian S-400 air defence system, which played a key role during the fighting with Pakistan, as Sudarshan Chakra, after a weapon referred to in Hindu texts. Modi was addressing the nation on the occasion of its Independence Day at a time New Delhi has been struggling with Trump's tariffs and the collapse of trade talks, largely due to differences over imports of American farm and dairy products. "Farmers, fishermen, cattle rearers are our top priorities," Modi said in his customary annual address from the ramparts of the Red Fort in New Delhi. "Modi will stand like a wall against any policy that threatens their interests. India will never compromise when it comes to protecting the interests of our farmers," he said. Modi did not mention the tariffs or the US in his speech that lasted nearly two hours. Last week, Trump imposed an additional 25 per cent tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax will raise duties on some Indian exports to as high as 50 per cent, among the highest levied on any US trading partner. Modi has never spoken about the tariffs directly, only alluding to them in a speech last week, where he swore to protect the interests of farmers, even if it came at a personal price. Farmers are a key political constituency in India and they violently protested against Modi's last big push to reform the sector, forcing him to repeal three farm laws in 2021 in what was a rare defeat for him. Tax cuts to boost consumption Although local manufacturing and self-reliance have been Modi's key focus areas for years now, the push is seen to have gained urgency amid ongoing global trade tensions and supply chain disruptions. "The need of the hour is to take a resolve for building a strong India ... I want our traders, shopkeepers to display boards for 'Swadeshi' products," Modi said, using the Hindi word for made in India goods. He said made-in-India semiconductor chips would hit the market by the end of this year and that India was pushing for self-reliance in producing critical minerals with exploration underway at more than 1,200 locations. Trump's tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly $87 billion in 2024, hitting sectors like textiles, footwear, shrimp, gems and jewellery. In retaliation, some supporters of Modi have sought to stoke anti-American sentiment and called for a boycott of US companies such as McDonald's, Coca-Cola, Amazon and Apple. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. Modi's promise to cut GST by October's Diwali festival, which encompasses one of India's biggest shopping seasons, follows previous commitments to overhaul it by reducing the number of rate brackets under the 2017 tax regime. A group of ministers have been preparing a report that will consider merging tax slabs and lowering rates on some products. In February, India cut personal income tax for some individuals to boost spending. Earlier this month, the central bank kept interest rates steady, following a 100 basis point cut this year so far. The government has proposed to the ministers' panel that it recommend reducing taxes on mass use items as well as on goods used by women, students and farmers to boost consumption and enhance affordability, the finance ministry said in an X post. The government will move towards making GST a simple tax with two rate slabs, one standard and another merit, it said. Special rates will be applicable only for a few select items.
