The National Anti-profiteering Authority (NAA) has ordered the Director-General of Anti-Profiteering (DGAP) to undertake a fresh investigation into L’Oreal India after the agency reduced the profiteering amount to Rs 186 crore from Rs 216 crore it had calculated in its initial report. “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 authority said in its order dated January 3, 2020.
The NAA has said in its order that the agency had not given any reasons for reducing its estimate or for not correcting the amount on its end, and had left it to the authority to approve the corrected amount. “In the absence of clear cut findings on the issue, this authority cannot pass a reasoned and just order,” the NAA added, referring to the lack of reasoning mentioned by the DGAP for the NAA to accept the agency’s recommendations in the case. “DGAP has also not explained why the above approach was not applied by him at the time of preparing the report dated July 2019,” the authority added.