KUALA LUMPUR: LTKM Bhd
's unit LTK (Melaka) Sdn Bhd is facing a charge of increasing its grade A egg prices by up 29.7% and hence committing an offence under the Price Control and Anti-Profiteering Act 2011.
The poultry company said on Thursday that LTK Melaka was issued with a summon on March 29 for increasing the margin for the egg from 12.29% to 29.75% and hence committing an offence under section 141 (1) of the act.
LTK Melaka is a major subsidiary which contributes more than 70% of the group’s profit before tax.
It said the board of directors was seeking legal advice and taking the necessary actions to respond to the above claim.
“LTK Melaka will be represented at the Melaka Session Court on April 16,” it said.
It added the potential liability, financial and operational impact cannot be determined with certainty at the moment.
The company faces a fine of up to RM500,000 for first-time offender and up to RM1mil for each subsequent offence.