The Competition Commission of India (CCI) has slapped fine of Rs. 2.30 crore, Rs. 2.09 crore and Rs. 1.88 crore upon 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 Poly Aluminium Chloride.
The CCI has found GIL, ABCIL and GACL to be in contravention of the provisions of Section 3(1) read with Section 3(3)(d) of the Competition Act, 2002 for rigging Delhi Jal Board tenders which were floated for procurement of Poly Aluminium Chloride (PAC) which is used for purification of water.
The final order has been passed on October 05 on a reference filed by Delhi Jal Board (DJB).
While rejecting the plea of being single economic entity taken by GIL and ABCIL, 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, CCI noted that the concept of single economic entity has no application in the context of the proceedings initiated under Section 3(3) of the Act, especially in a case of bid rigging/collusive bidding.
The penalty has been levied at 8 per cent of the average relevant turnover of GIL and ABCIL of preceding three years. In case of GACL, penalty has been levied at 6 per cent of the average relevant turnover of preceding three years. The conduct of GIL and ABCIL was noted by the Commission as egregious as these companies while apparently submitting separate bids, prepared and finalised the same through common channels creating a fa‡ade of competitive landscape.
Meanwhile, separate order passed in another reference filed by DJB in respect of alleged bid rigging in the tenders floated for Liquid Chlorine- another chemical used for purification of water, CCI found no contravention as no analysis was done by the Director General with respect to basic price, transportation cost, taxes and policy of profit margin of the parties as was done in the previous reference.