CCI slaps penatly on GIL, ABCIL and GACL

Speed Post News Network

New  Delhi : The Competition Commission of India (CCI) has found Grasim Industries Limited (GIL), Aditya Birla Chemicals (India) Ltd. (ABCIL) and Gujarat Alkalies and Chemicals Ltd. (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 floated for procurement of Poly Aluminium Chloride  (PAC) which is used for purification of water. The final order was passed on October 5, 2017, on a reference filed by Delhi Jal Board (DJB).

While rejecting the plea of being single economic entity taken by GIL and ABCIL, the 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, the 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, according to a PIB release.

Apart from issuing a cease and desist order against the above companies, the CCI has imposed a penalty of Rs 2.30 crore, Rs 2.09 crore and Rs. 1.88 crore on GIL, ABCIL  and GACL respectively for the anti-competitive conduct. The penalty has been levied @ 8 % of the average relevant turnover of GIL and ABCIL of preceding three years. In case of GACL, penalty has been levied @ 6 % 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 façade of competitive landscape, according to the PIB release.