CCI penalises 7 firms guilty of bid-rigging in Indian Railways tenders
Premium- The CCI cited regular e-mail communications between the parties and filing of bids from the same IP addresses by certain parties etc. as pieces of evidence.
The Competition Commission of India (CCI) on 9 June penalised 7 firms who were found guilty of bid-rigging and cartelization in Indian Railways tenders.
During the probe, CCI found the 7 (seven) firms to have indulged in cartelisation in the supply of protective tubes to the Indian Railways by means of directly or indirectly determining prices, allocating tenders, controlling supply and market, co-ordinating bid prices and manipulating the bidding process, it said in an official press release.
The CCI cited regular e-mail communications between the parties and filing of bids from the same IP addresses by certain parties etc. as pieces of evidence.
The chief national competition regulator even imposed a 5 per cent penalty of the average turnover or income upon the firms and certain individuals were found guilty of violating the provisions of the Act.
However, the benefit of reduction in penalty under the provisions of Section 46 of the Act of 100 per cent was given to the lesser penalty applicant. Following the reduction, CCI directed the parties to pay penalties totalling approximately ₹30 lakhs.
Apart from this, CCI also held 10 individuals of these 7 firms to be liable for the anti-competitive conduct of their respective firms in terms of the provisions of Section 48 of the Act.