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CCI penalises firms for bid rigging

Akash Sharma, New Delhi
06/10/2017   0 Comments

The Competition Commission of India (CCI) has penalised Grasim Industries Limited (GIL), Aditya Birla Chemicals (India) Ltd. (ABCIL) and Gujarat Alkalies and Chemicals Ltd. (GACL)  for bid rigging Delhi Jal Board tenders for supply of a water purification product.

In its order issued against the firms, 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.

While rejecting the plea of being single economic entity taken by GIL and ABCIL, the 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, the CCI said that the concept of single economic entity has no application in the context of the proceedings initiated under the relevant section of the Competition Act, especially in a case of bid rigging or collusive bidding.

The penalty has been levied at the rate of 8% of the average relevant turnover of GIL and ABCIL of preceding three years. 

In case of GACL, the penalty has been levied at the rate of 6% of the average relevant turnover of preceding three years.

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