The Competition
Commission of India (CCI) has found Grasim Industries Limited (GIL), Aditya
Birla Chemicals (India) Ltd. (ABCIL) and Gujarat Alkalies and Chemicals Ltd.
(GACL)to be in contravention of the provisions of Section 3(1) read with
Section 3(3)(d) of the Competition Act, 2002 for rigging Delhi Jal Board
tenders which were floated for procurement of Poly Aluminium Chloride (PAC)
which is used for purification of water.
The final order has been passed today on
a reference filed by Delhi Jal Board (DJB).
While rejecting the plea of being single
economic entity taken by GIL and ABCIL, CCI noted in the order that these two
companies are not only separate legal entities but also have participated in
these tenders individually and separately. Further, CCI noted that the concept
of single economic entity has no application in the context of the proceedings
initiated under Section 3(3) of the Act, especially in a case of bid
rigging/collusive bidding.
Apart from issuing a cease and desist
order against the above companies, CCI has imposed a penalty of Rs. 2.30 crore,
Rs. 2.09 crore and Rs. 1.88 crore upon GIL, ABCIL and GACL for the
anti-competitive conduct. The penalty has been levied @ 8 % of the average
relevant turnover of GIL and ABCIL of preceding three years. In case of GACL,
penalty has been levied @ 6 % of the average relevant turnover of preceding
three years. The conduct of GIL and ABCIL was noted by the Commission as
egregious as these companies while apparently submitting separate bids,
prepared and finalised the same through common channels creating a façade of
competitive landscape.
Vide separate order
passed in another reference filed by DJB in respect of alleged bid rigging in
the tenders floated for Liquid Chlorine- another chemical used for purification
of water, CCI found no contravention as no analysis was done by the Director
General with respect to basic price, transportation cost, taxes and policy of
profit margin of the parties as was done in the previous reference.
A copy of the CCI’s order passed in Ref.
Case Nos. 03 & 04 of 2013 has been uploaded on the website of CCI at www.cci.gov.in.
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DSM/SBS
