Competition Commission of India finds conduct
and practice of coal and sand transportation companies to be in contravention
of the Competition Law; The parties have been directed to cease and desist from
indulging in anti-competitive conduct; A total penalty of Rs. 11,81,71,260
imposed on the ten parties; Penalty also imposedon the eight officials of the
said parties who were found to be liable in terms of Section 48 of the
Act.
The Informant, Western
Coalfields Limited, had approached Competition Commission of India (Commission)
alleging bid-rigging by SSV Coal Carriers Private Limited, M/s Bimal Kumar
Khandelwal, M/s Pravin Transport, M/s Khandelwal Transport, M/s Khandelwal
Earth Movers, M/s Khanduja Coal Transport Co., M/s Punya Coal Road Lines, M/s
B. Himmatlal Agrawal, M/s Punjab Transport Co. and Avaneesh Logistics Private
Limited, upon noticing identical price quotes given by them in four tenders
floated for coal and sand transportation. It was alleged that the conduct of
submitting identical bids at higher rates is a blatant act of bid rigging.
The case was
investigated by the Director General, Competition Commission of India(CCI) who
found these parties in violation of Section 3(3)(d) of the Act. The Commission
after hearing the parties concluded that they were in agreement to fix prices
resulting in bid-rigging in the tenders floated by the Informant. In its order,
the Commission noted that such conduct in public procurement besides defeating
the tendering process, has an adverse impact on the process of competition
resulting in deprivation of efficient outcomes that would have followed otherwise.
The Commission has held
the said parties to be in contravention of the provisions of Section 3(3)(d) of
the Act. Further, the Commission has also found eight officials of the said
parties to be liable in terms of Section 48 of the Act being responsible for
running the business or for being a part of the impugned conduct.
Resultantly, the
Commission passed the following orders:
-
The parties have been directed to cease and desist from indulging
in anti-competitive conduct.
-
A total penalty of Rs. 11,81,71,260 (Eleven Crores Eighty One Lacs
Seventy One Thousand Two Hundred & Sixty) has been imposed on the ten
parties, calculated at the rate of 4% of their average turnover during the last
three financial years. The Commission has also imposed penalty on the eight
officials of the said parties who were found to be liable in terms of Section
48 of the Act.
Detailed order of CCI
can be accessed on its website www.cci.gov.in.
Press Release can be
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