Mmtc Gets Enquiry Notice From Mrtpc

The MRTP Commission has issued a notice of enquiry to MMTC Ltd in a case involving the public sector company and Shri Balaji Traders, a Delhi-based bullion merchant.

The notice of enquiry relates to a case in which MMTC had entered into a memoradum of understanding (MoU) with Shri Balaji Traders on November 13, 1997 for import of gold and silver under the new gold policy.

As per the MoU, MMTC had agreed to import two tonne of silver on behalf of Shri Balaji Traders.

Balaji Traders also deposited Rs 7 lakh amounting to five per cent of earnest money as per the terms and conditions of the MoU. The MoU was to be valid from the date of signing upto December 31, 1997.

 

As per the MoU, the customer (Shri Balaji Traders) was also entitled to a discount of 1.5 per cent on the combined turnover of gold and silver upto Rs 5 crore.

On November 17, MMTC sold 1058 .7 kg of silver to Balaji Trdaers at the rate of Rs 6934 per kg, and which they took delivery after paying Rs 75 lakh.

However, when Balaji Traders approached MMTC on November 20 along with pay orders worth Rs 56.75 lakh to lift the remaining 942 kg of imported silver , MMTC refused to accept the sum from Balaji Traders.

It also subsequently refused to cancel the pay orders as requested by Balaji Traders.

Shri Balaji Traders claim that MMTC asked it to purchase the remaining 942 kgs at the regular price and not under the price agreed upon in the MoU.

Balaji Traders then registered a case against MMTC for not complying with the terms and conditions of the MoU, and saying that it wanted to lift the balance 942 kgs of silver on payment of Rs 56.75 lakh.

In its application to the MRTPC, through advocate Sunil Goyal, Shri Balaji Traders said that as per clause 5 of the MoU, the customer was to pay the full amount for purchasing the silver. However, MMTC is not willing to deliver the remaining amount of silver though the applicant (Balaji Traders) is willing to pay the full price and lift the balance quantity.

Clause 5 of the MoU said: The customer agrees and undertakes to lift the entire indented quantity within a maximum period of seven days after clearance of the consignment. In case he fails to do so, five per cent of earnest money deposit shall be forfeited by MMTC, and MMTC shall have the right to dispose off the material as they deem fit, and the customer shall be liable for consequential loss/damages.