According to the Ministry of Corporate Affairs, the CCI found HMIL to be in contravention of the provisions of Competition Act, 2002 for imposing arrangements upon its dealers which resulted into "resale price maintenance in sale of passenger cars manufactured by it".
"Such arrangements also included monitoring of the maximum permissible discount levels through a discount control mechanism," the ministry said in a statement.
"Further, HMIL was found to have contravened the provisions... for mandating its dealers to use recommended lubricants, oils and penalising them for use of non-recommended lubricants and oils."
Apart from issuing a cease and desist order against HMIL, CCI imposed a penalty of Rs 87 crore upon the company for the anti-competitive conduct.
"The penalty has been levied at the rate of 0.3 per cent of the average relevant turnover of HMIL of preceding three years," the statement said.
"CCI noted in its order that for the purposes of determining the relevant turnover for the impugned infringement, revenue from sale of motor vehicles alone have been taken into account."
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