Order Detail

Order Bahria University
brief description
Section Section 3(3)(c) of the Act
Violation: Tie-in arrangement/Mandatory sale of laptops
Sector: Shopping Mall
Penalty: ten million
Adjudicating Members
Members: Dr. Joseph Wilson

Background of Case:

This matter was in relation to the Commission’s earlier order dated 24-07-2008 against the undertaking

Subsequent to the Order dated 24-07-08 Bahria University through its various letters informed the Commission that the order has been complied. However, upon complaints received from the students of Bahria University, CCP deemed it appropriate to conduct an enquiry as to whether the order has been complied or not. The enquiry in the matter was concluded vide Enquiry Report dated September 1, 2009. The Enquiry Report concluded that the order has not been complied, therefore, proceedings for non-compliance be initiated against the university for non-compliance. The Commission upon recommendation of the Enquiry Report issued a show cause notice to Bahria University on 2 November 2009 requiring Bahria University to show cause in writing within twenty one (21) days and to avail the opportunity of hearing on 3 December 2009, as to why penalty should not be imposed on Bahria University for non-compliance of the order.

CCP in today’s Order has observed that, “Bahria University did not force its students from Fall Semester 2008 onwards to purchase the laptops from the university under the mandatory scheme, however, Bahria University did make mandatory sale of laptops to its students in Summer Semester 2008, which contradicts the undertaking given by Bahria University vide its letter dated April 11, 2008. Although Bahria University made incorrect statements to the Learned Single Member, however, we note that, after the passing of the order, the university has not made any mandatory sale of laptops to its students. Moreover, as per the commitment of the university during the hearing before us, it has also settled the account of 11 MBA Maritime student’s account to whom the laptop was sold in the Summer Semester 2008.”

The Order:

After the hearing in the matter two officers of CCP namely Ikram Ul Haque Qureshi, Director General (Legal) and Shiasta Bano, Director (Cartels) were authorised to visit Bahria University and verify the compliance of the order by Bahria University through its letters dated 20-01-2010. The officers submitted their report on 12-07-2010 to CCP stating therein that, “On careful examination of the data and all the relevant documents it appears that the university has now complied with the directions issued in the order of the Commission and has reimbursed on pro rata basis the excessive amount that was being charged to the students who bought laptops from the university on installments. In this process the university has incurred additional expense of Rs 1.2 million over and above the amount of Rs 10 million that the university was required to refund to the students in the aforementioned order of the Commission. The mandatory sale of laptops has already been discontinued.”

Based on the above, the Commission further observed that, “the Order was not complied in toto by Bahria University initially owing to the misunderstanding regarding the mode of payment on pro rata rebate; however, as assured by the representatives of Bahria University, the mistake was rectified immediately and the fact that in doing so, Bahria University has also incurred additional expense of Rs.1.2 Million over and above the amount of Rs.10 Million that Bahria University was required to refund to the students.

Therefore, in appreciation of the conciliatory and compliance oriented approach of Bahria University and their full co-operation during the proceedings no penalty was imposed for initial partial non-compliance and the matter was disposed off.

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