Madison Communications has asked the Delhi High Court to quash an antitrust investigation into the advertising agency, stating that its executives have been questioned without legal representation during raids conducted in March, as per court documents reviewed by Reuters.
As per media reports, the Competition Commission of India (CCI) has launched the investigation after Dentsu disclosed alleged industry malpractices in February 2024 under its leniency program. Madison has been among several ad agencies and broadcasters raided on suspicion of collusion over advertising rates and discounts, one of the most stringent regulatory actions on India’s advertising sector so far. Other firms raided include WPP’s GroupM, Dentsu, Publicis, and Omnicom.
Madison has filed a 276-page legal petition on October 8, marking the first attempt to halt the CCI’s probe into one of the agencies. The company has claimed that Chairman Sam Balsara and Executive Director Vikram Sakhuja have been questioned in the middle of the night “in the presence of armed personnel” without being given the opportunity to consult lawyers.
The agency has also argued that the raids have become unlawful as the watchdog has not shared details of the seized documents, which Madison says is required under Indian law. “It is a violation of the principles of transparency, fairness, and due process,” the court papers have stated.
According to the filings, the CCI has summoned Balsara and Sakhuja to appear before its investigation team next week to provide further clarifications. Madison has sought to have these summons quashed as well.
The CCI’s initial assessment has reportedly found that the firms have entered into secret pacts to coordinate and agree on pricing via a WhatsApp group. The case is scheduled to be heard by a New Delhi judge on Thursday, where possible outcomes include pausing the investigation, allowing Madison’s plea to proceed through hearings, or dismissing it altogether.
Publicis has also approached the Delhi High Court in a separate plea seeking access to case files but has not requested the probe to be quashed. The court has asked the CCI to clarify its stance and will hear that case on the same day.
