A hardware company, R.C. Manubhai has denied all allegations made in the report compiled by the Commerce Commission on the trade practices of hardware companies in the country.

R.C. Manubhai group of companies Managing Director, Dinesh Patel said it is surprising and grossly unfair that the Commerce Commission would choose to air allegations to the media before even putting it to them.

According to Patel, certain allegations were made against them particularly profit shifting and exorbitant markups - as much as 34,000% on certain items however the Commerce Commission has not put any of these allegations directly to them.

Patel added that they wrote to the Commission on several occasions asking for details of what laws their company has allegedly breached and they have not responded.

R.C. Manubhai has instructed their lawyers to write to the Commerce Commission and also to advise them on the next step to take.

When contacted this afternoon, Commerce Commission Chairman, Dr Mahendra Reddy refused to make any comments on the response by R.C. Manubhai, adding that the report is with the minister and if the company wants to take legal action they will face them in court.

Dr Reddy highlighted five key issues in the report, that there are exclusive dealings, markups as high as 34,000 percent on certain items like fasteners, paints, tools, electrical appliances, roofing materials, timber and steel which have high to exorbitant markups, violation of accounting practices, profit shifting by larger operators to off-shore companies and importation of sub-standard products.

Story by: Ronald Deo