*

India key market for global delivery companies

*

New twist in antitrust case sparked scrutiny of courier

firms

*

UPS opposing decision to allow its India head to be

questioned

*

Courier firms locked in tussle with book publishers for

years

By Aditya Kalra

NEW DELHI, Oct 23 (Reuters) - UPS has asked an

Indian court to quash a decision by the antitrust watchdog to

allow book publishers to cross-examine its India executive,

arguing it amounts to "coercion" as the company has already been

cleared of wrongdoing, court papers show.

An Indian antitrust investigation report last year found "no

evidence" that FedEx ( FDX ), UPS, Aramex and DHL indulged in price

collusion, as alleged by a book publishers' body. But in an

unusual twist in May, the watchdog allowed the Federation of

Indian Publishers to cross-examine courier executives itself.

Allowing a complainant to interrogate companies is not

common in Indian antitrust cases, and UPS has asked the Delhi

High Court to quash the Competition Commission of India (CCI)

decision, saying it was taken without giving any "cogent

reasons" as to why it was necessary.

The book publishers' "cross-examinations is nothing more

than a fishing and roving expedition and should not be

permitted", UPS Express Private Limited said in an October 8

filing, which is not public but was reviewed by Reuters on

Thursday.

The order will "vitiate the effect of the DG's investigation

which has lasted around three years", it added.

DHL, FEDEX ( FDX ), ARAMEX EXECUTIVES TO BE CROSS-EXAMINED

UPS said in a statement to Reuters it continued to fully

cooperate with the CCI on the matter.

Abbas Panju, India managing director of UPS Express who is

to be cross-examined, did not respond to a request for comment.

The CCI and the publishers' federation did not immediately

respond to requests for comment. The body represents many Indian

publishers like S.Chand and Rupa Publications, as well as some

foreign groups like Pan Macmillan.

The case is set to be heard on November 24.

Given the rise in online shopping, many foreign and domestic

companies are bullish about the Indian courier and parcel

delivery market, which is expected to grow 11% a year in value

to $14.3 billion by 2030, Mordor Intelligence says.

Sending the case back to the CCI investigators could become

an irritant for the logistics industry.

CCI senior officials in May found merit in the complaint by

the publishers' group which argued cross-examination of the

delivery company executives should be allowed as investigators

relied on oral submissions to give the companies a clean chit.

The CCI has also ordered cross-examination of top executives

of India's DTDC Express, DHL Express, FedEx ( FDX ) and Aramex, but they

are yet to commence or be concluded, according to a source with

direct knowledge of the matter.

DHL told Reuters in August it was cooperating with the CCI,

while the other companies have not commented.

(Reporting by Aditya Kalra; Editing by Emelia Sithole-Matarise)