CCI penalises firms for rigging Indian Railways' tenders
Premium- One of the seven parties which provided full disclosure of the alleged cartel has received a waiver of penalty.
New Delhi: Competition Commission of India (CCI) said on Thursday seven entities have been found allegedly rigging bids invited by the Indian Railways and has issued a final order penalising them.
One of the seven parties which provided full disclosure of the alleged cartel has received a waiver of penalty.
CCI alleged that the seven firms were found to have contravened certain provisions of the law which proscribed anti-competitive agreements.
The regulator also found ten individuals of these seven entities to be liable for the anti-competitive conduct of their respective companies.
The case was initiated on the basis of a lesser penalty application filed by one of the cartelising entities. Under Section 46 of the Competition Act, a cartel member may approach CCI seeking lesser penalty in return for providing full, true and vital disclosures in respect of the alleged cartel, the competition watchdog said.
CCI imposed penalty at the rate of 5% of the average turnover of the companies or income of the individuals found guilty of violating the provisions of the Competition Act. The benefit of full reduction in penalty was given to the lesser penalty applicant. Post reduction, CCI directed the parties to pay penalties of ₹three million and has issued a cease-and-desist order, the regulator said.
CCI found these seven firms to have allegedly indulged in cartelisation in the supply of protective tubes to the Indian Railways by directly or indirectly determining prices, allocating tenders, controlling supply and market, co-ordinating bid prices and manipulating the bidding process. The evidence in the matter included regular e-mail communications between the parties and filing of bids from same internet protocol addresses by certain parties, CCI said.