India: CCI asks Coal India to examine spot e-auction scheme

Fair trade regulator CCI has asked Coal India to examine afresh its spot e-auction scheme to obviate possible violation of competition norms even as the watchdog rejected a complaint of unfair business practices against the state-owned miner.

Earlier also, Coal India had come under the scanner of the Competition Commission of India. In December 2013, the regulator had imposed a fine of Rs 1,773 crore on the miner which has challenged it. In the latest instance, it was alleged by DB Power that CIL and its subsidiary Northern Coalfields Ltd abused their dominant positions with respect to spot e-auction of coal.

Competition Commission of India considered ‘sale of non-coking coal to the bidders under spot e-auction scheme in India’ as the relevant market in the present matter. While CIL and its subsidiaries were found to be dominant in the relevant market in earlier cases, the Commission said no case of abuse of dominance by opposite parties is there.

Full content: The Hindu Business Line

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