A PYMNTS Company

India: CCI imposes penalties on seven cement companies for bid-rigging

By  |  January 22, 2017
India: CCI imposes penalties on seven cement companies for bid-rigging

The Competition Commission of India has imposed penalties on seven cement companies for bid rigging of a tender floated by the Director, Supplies and Disposals of Haryana in 2012 for procurement of cement to be supplied to the Government Departments/Boards/Corporations in the state. The CCI has also imposed penalties upon 10 cement companies and their trade association i.e. Cement Manufacturers Association for cartelisation in the cement industry.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    A final order has been passed by CCI pursuant to a reference filed under Section 19(1)(b) of the Competition Act, 2002 by the Director, Supplies and Disposals, Haryana and Competition Appellate Tribunal remanding the matter back while setting aside the original order of CCI. The CCI has held that the cement companies, through their impugned conduct, have engaged in bid-rigging in contravention of the provisions of Section 3(3)(d) read with Section 3(1) of the Act, which eliminated and lessened competition and manipulated the bidding process in respect of the impugned tender.

    The bid-rigging has been established from quoting of unusually higher rates in the impugned tender (than rates quoted in tenders of previous years), determining different basic prices for supply of cement at the same destination through reverse calculation, quoting of quantities in the impugned tender such that the total bid quantity almost equalled the total tendered quantity, quoting of rates for the districts in a manner that all cement companies acquired L1 status at some of the destination(s) etc. The anti-competitive conduct was re-affirmed through SMSes exchanged and calls made amongst the officials of the cement companies.

    Full Content: Daily, News & Analysis

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.