L’Oreal India faces new anti-profiteering probe

By

Isabelle Crossley

Published
Feb 12, 2020

L’Oreal India faces a further anti-profiteering investigation as the National Anti-Profiteering Authority (NAA) has ordered the Director General of Anti-Profiteering (DGAP) to re-evaluate its alleged profiteering figure.

 
The DGAP had previously investigated cosmetics giant L’Oreal for alleged profiteering and calculated that the profiteered amount totalled Rs 216 crore ($32.47 million) in its initial report on the matter. The agency then reduced its total to Rs 186 crore. The NAA, stating that the DGAP has not provided sufficient reasoning for why it changed the total, has ordered a new investigation into L’Oreal, ET Bureau reported.
 
“The reports furnished by DGAP cannot be accepted and he is directed to cause further investigation on the above issues and furnish a fresh report in terms of Rule 133 (4) of the CGST Rules, 2017,” the NAA said in a ruling on the matter, ET Bureau reported. 

“In the absence of clear cut findings on the issue, this authority cannot pass a reasoned and just order,” said the NAA.

“DGAP has also not explained why the above approach was not applied by him at the time of preparing the report dated July 2019.”
 
Anti-profiteering regulations are designed to prevent businesses from making excessive profits through goods and services tax. The idea is to protect consumers from price hikes and ensure shoppers receive the benefits of any GST cuts.