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    CCI penalises 11 entities for bid rigging and cartelisation in Indian Railways tenders

    CCI penalises 11 entities for bid rigging and cartelisation in Indian Railways tenders

    CCI penalises 11 entities for bid rigging and cartelisation in Indian Railways tenders
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    By CNBCTV18.com  IST (Updated)

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    The Competition Commission of India (CCI) on Tuesday penalised 11 companies and 14 individuals of these entities that were found guilty of bid rigging and cartelisation in Indian Railways tenders. The CCI imposed penalties at 5 percent of the average turnover on the companies and the individuals found guilty of violating the provisions of the Act.

    The Competition Commission of India (CCI) on Tuesday penalised 11 companies that were found guilty of bid rigging and cartelisation in Indian Railways tenders. 14 individuals of these 11 entities were also held liable for the anti-competitive conduct of their respective companies, in terms of the provisions of Section 48 of the Act.
    “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,” CCI said in a statement.
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    “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.,” the CCI added.
    The CCI imposed penalties at 5 percent of the average turnover on the companies and the individuals found guilty of violating the provisions of the Act.
    Of the 11 entities, 4 companies were given the benefit of reduction in penalty under the provisions of Section 46 of the Act. 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.
    A reduction in penalty of 80 percent to first lesser penalty applicant and its individuals, 40 percent to second lesser penalty applicant, 30 percent to third lesser penalty applicant and its individuals, and 20 percent to fourth lesser penalty applicant and its individuals were given.
    The CCI directed the parties to pay penalties totalling to approx. Rs 1.16 crore, besides issuing a cease-and-desist order.
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