CCI penalises 11 firms for bid rigging and cartelisation in Indian Railways tenders
Apr 05, 2022
New Delhi [India], April 5 : The Competition Commission of India (CCI) on Tuesday said it has imposed financial penalties on 11 firms that have been found guilty of bid-rigging and cartelisation in Indian Railways tenders.
According to an official statement released by the Competition Commission of India, the case was initiated on the basis of a reference filed on behalf of the North-Western Railways.
"CCI found these companies/ firms to have indulged in cartelisation in the supply of High Performance Polyamide Bushes (HPPA) and Self Lubricating Polyester Resin Bushes (SLPR) 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," the statement said.
The evidence in the matter included regular e-mail communications and WhatsApp exchanges between the parties, quoting of identical/ similar prices by certain parties, filing of bids from same IP addresses by certain parties in close proximity, etc.
Of the 11 entities, four were lesser penalty applicants before the CCI. Under Section 46 of the Act, a cartel member may approach the Commission by way of filing an application seeking lesser penalty, in return for providing full, true and vital disclosures in respect of the alleged cartel to the Commission.
Further, 14 individuals of these 11 entities were also held by the CCI to be liable for the anti-competitive conduct of their respective companies/ firms, in terms of the provisions of Section 48 of the Competition Act, 2002 (Act).
CCI imposed penalties @5 per cent of the average turnover/ income upon the companies/ firms and their respective individuals found guilty of violating the provisions of the Act.
Giving the benefit of reduction in penalty under the provisions of Section 46 of the Act of 80 per cent to the first lesser penalty applicant and its individuals, 40 per cent to the second lesser penalty applicant, 30 per cent to the third lesser penalty applicant and its individuals, and 20 per cent to the fourth lesser penalty applicant and its individuals, CCI directed the parties to pay penalties totaling to approximately Rs 1.16 crore, besides issuing a cease-and-desist order.
