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India: CCI reduces bid rigging fine after 6 contractors admit guilt

 |  May 6, 2018

The Competition Commission of India (CCI) has imposed a fine of INR35.7 million (US$534,163) on six firms for colluding with Pune Municipal Corporation (PMC officials) and undertaking bid rigging while filing tenders for thermal composting garbage plants in 2014.

The tenders pertained to seven thermal composting plants at various locations including Kharadi, Ghole Patil road and Peshwe Park, and were worth INR140 million (US$2.1 million).

In the order issued on Tuesday, May 1, the CCI observed that various individuals of the firms coordinated to “rig the tenders by way of submitting proxy/cover bids.”

The CCI has also indicted Pune Municipal Corporation (PMC) saying the civic body “failed to detect cartelization in its own tenders. “It is clear from investigation that PMC did not exercise due diligence while scrutinizing the bid documents. Even though there were several apparent indications of collusion like same IP addresses, common proprietor/ director, same office address, consecutive serial number for DDs etc., these were not taken into consideration by OP-3 while determining the eligibility of the bidders,” noted CCI in its order.

The six firms against whom the CCI has imposed fines have all admitted their role in rigging bids, based on which the Commission has reduced its penalties.

Full Content: Hindustan Times

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