The Competition Commission of Pakistan (CCP) has decided to issue an order against the management of a leading university, which forced its new students to purchase laptops from the university as a precondition for obtaining admission.
It was learnt on Tuesday that the Commission would soon issue this order first of its kind against Bahria University, "engaged in unfair trade practices" under the new Competition Ordinance.
According to details, the university purchased a large number of laptops from a branded computer company and made it mandatory for the new applicants to purchase computers for obtaining admission in the university. Without fulfilment of this condition, no fresh student is being allowed admission. The university management tried to sell these laptops to the new students, but they were reluctant to purchase the same.
Consequently, the university administration has given loans to the students at a high interest rate of 12 percent for compulsory purchase of computers, creating serious financial problems for new students. Taking serious note of the situation, the Commission initiated an inquiry against the university under the new law.
The Commission is expected to issue an order in the next couple of days against the university on charges of unfair trade practices. Instead of imposing fine on the university, the Commission has decided to favour these students by returning the excess amount to them. Each student is likely to get around Rs 10,000 as refund from the university, which charged higher interest rates from them.
The Competition Commission would also direct the university that it should not link admission with the mandatory condition of purchasing computers. The students should not be bound to purchase such equipment for taking admission.
Sources said that the Commission order would also work as guideline for other universities and organisations to restrain from committing unfair trade practices. There is a general perception that the Commission is primarily related to the unfair trade practices committed by companies. However, issuance of such an order would surprise the general public that the Competition Commission is legally empowered to facilitate students as well.
Sources said that the Commission also convened a hearing of cement cartel case in Lahore. When the Competition Commission raided the regional headquarters of All Pakistan Cement Manufacturers Association (APCMA), its secretary intercepted the raiding team and obstructed work of the Commission.
The Commission served a show-cause notice to the secretary of the association and now an opportunity has been provided to him to explain his position. During hearing at Lahore, the association pleaded its case through legal representatives. The secretary of the association was of the view that he had not done anything wrong during the whole episode.
The Commission is legally empowered to impose penalty of Rs 1 million on any person, who would obstruct its work. It is worth mentioning that a team of 6-7 officials of the Competition Commission recovered computers and other valuable records from the office of the association at Lahore.
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