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India: CCI quashes appeal against distribution arm of REC

By  |  May 19, 2016

The Competition Commission of India in its recent judgement quashed allegations against REC Power Distribution Company Limited, a wholly owned subsidiary of Rural Electrification Corporation, of it leveraging its association with REC to secure work in the market for consultancy services for financing of rural electrification projects.

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    In the judgement dated May 4, CCI disagreed with the Director General’s investigative report filed last year, and held that there was no evidence to establish that RECPDCL’s conduct was abusive.

    “In the absence of any evidence on record to indicate abusive conduct REC and RECPDCL, the Commission is of the opinion that the preferential advantage to RECPDCL given by Discoms appears to be a consequence of the structure in the market and the same cannot be taken as the basis to infer abuse on the part of both.,” said the order.

    As the investigative wing, the office of the DG found a violation and the CCI disagreed with these findings,the final order is not appealable to the Competition Appellate Tribunal.

    Full Content: Business Standard

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