Competition Commission slaps Rs25.67 cr penalty on Adani Gas
07 Jul 2014
The Competition Commission of India (CCI) has imposed a penalty of Rs25.67 crore on Adani Gas Ltd for abusing the company's dominant position in the supply of natural gas in the Faridabad region of Haryana, the fair trade watchdog said.
Adani Gas is a subsidiary of Adani Enterprises, which is part of diversified Adani Group.
CCI's ruling comes on a case related to supply and distribution of natural gas by Adani Gas Ltd in Faridabad. The watchdog has held that Adani Gas violated competition norms by imposing "unfair conditions upon the buyers under Gas GSA".
The CCI found Adani Gas to be in "dominant position in the relevant market of supply and distribution of natural gas to industrial consumers in the district Faridabad, Haryana", according to a CCI release.
The penalty is equivalent to four per cent of Adani Gas's average turnover for the last three financial years.
Besides directing Adani Gas to cease and desist from unfair practices, the CCI has asked the company to modify the gas sales agreements (GSAs).
"Apart from issuing a cease and desist order against Adani Gas Ltd, the CCI directed modification of GSAs in light of the findings and observations recorded in the order," the statement said.
CCI took up the case following information filed by Faridabad Industries Association and the final order was passed on 3 July.
