Competition watchdog probing Railways, IRCTC for unfair practices
14 Mar 2014
The Competition Commission of India (CCI) has decided to look into the unfair practices of mandatory charging for provision of food and other services for railway passengers by Indian Railways and its catering and online ticketing arm, Indian Railways Catering and Tourism Corporation (IRCTC).
The fair trade watchdog has ordered a scrutiny of the unfair trade practices related to online booking of tickets, premium charges for calls made to Indian Railways' call centre, and compulsorily charging for providing food in trains such as the Rajdhani Express.
For passengers using premium category travel like the Rajdhani Express, Shatabdi and the Duranto services, the Railways give no option than what is served on the trains, it is alleged.
The CCI investigation, which is based on a complaint filed against the ministry of railways and the Indian Railway Catering and Tourism Corporation Ltd, would also look into the possible role of individuals related to the matter.
The CCI has already acknowledged that in the railway passenger services segment, the Indian Railways has an undisputable domination, ''due to the statutory and regulatory framework''.
The CCI will also look into other allegations relating to abusive conduct by the Railways and IRCTC.
Besides, it would study a complaint about IRCTC being the sole online platform to provide services.
''The allegations of …compulsorily charging for catering facility in Rajdhani and other trains …limiting and restricting technical and scientific development in relation to booking of e-tickets using the IRCTC platform, service charge on e-tickets being non-refundable even if the passenger needed to cancel the ticket; e-wallet scheme with unreasonable conditions appear to be some of the conduct mentioned in the information, which prima facie appears to be abusive in contravention of the provisions of Section 4 of the Act,'' CCI stated.
''In view of the foregoing discussion, the Commission is of the opinion that prima facie, a case of contravention of the provisions of the Act is made out against IR and IRCTC,'' it stated.
This is the second major probe by the fair trade watchdog against a central government enterprise after Coal India Ltd (CIL).
