CCI slaps Rs11.81- cr penalty on 10 coal transport companies

The Competition Commission of India (CCI) has slapped a Rs11.81 crore penalty on ten coal and sand transportation companies whose conduct and practice were found to be in contravention of the Competition Law.

CCI has directed the parties to cease and desist from indulging in anti-competitive conduct besides imposing a total of Rs11,81,71,260 on the companies. Penalties have also been imposed on eight officials of the transportation companies who were found to be liable in terms of Section 48 of the Act.

The action has been taken on a complaint by Western Coalfields Limited which had approached CCI alleging bid-rigging by SSV Coal Carriers Private Limited,  Bimal Kumar Khandelwal, Pravin Transport, Khandelwal Transport, Khandelwal Earth Movers, Khanduja Coal Transport Co, Punya Coal Road Lines, B Himmatlal Agrawal, Punjab Transport Co and Avaneesh Logistics Private Limited.

It was pointed out that all ten bidders  have quoted identical prices in four tenders floated for coal and sand transportation. It was alleged that the conduct of submitting identical bids at higher rates is a blatant act of bid rigging.

Investigation by the Director General, CCI has established price rigging by the transport companies. On a hearing of the transport companies the CCI has found these parties were in agreement to fix prices resulting in bid-rigging in the tenders in violation of Section 3(3)(d) of the Act.

In its order, the commission noted that such conduct in public procurement besides defeating the tendering process, has an adverse impact on the process of competition resulting in deprivation of efficient outcomes that would have followed otherwise.

Besides the penalty on the companies, CCI also found eight officials of the companies responsible for running the business to be a part of the impugned conduct and hence liable in terms of Section 48 of the Act.