Friday, Apr 19 2024 | Time 14:58 Hrs(IST)
image
Business EconomyPosted at: Jan 19 2017 8:29PM


CCI imposes penalty on bidders for cartelisation in tenders of Indian Railways

New Delhi, Jan 19 (UNI) The Competition Commission of India (CCI) has imposed penalties on three firms for bid rigging of tenders floated by Indian Railways for procurement of Brushless DC fans in the year 2013.
A penalty of Rs. 2.09 crores, Rs. 62.37 lakhs and Rs. 20.01 lakhs and was imposed on the firms M/s Western Electric and Trading Company, M/s Pyramid Electronics and M/s R. Kanwar Electricals respectively in terms of proviso to Section 27 (b) of the Act.
While imposing penalty, Commission took into consideration all the relevant factors including the duration of the cartel, volume of the tender affected by the cartel and value thereof and decided to impose penalty on M/s Pyramid Electronics and M/s Western Electric and Trading Company calculated at 1.0 time of their profit respectively in the year 2012-13 and on M/s R. Kanwar Electricals at the rate of 3 percent of its turnover for the year 2012-13.
Additionally, considering the totality of facts and circumstances of the case, penalty was also imposed on persons-in charge of the three firms i.e., Shri Sandeep Goyal of M/s Pyramid Electronics, Shri Ashish Jain of M/s R. Kanwar Electricals and Shri Ramesh Parchani of M/s Western Electric and Trading Company at the rate of 10 percent of the average of their income for the last three preceding financial years.
CCI has held that the firms had shared the market by way of allocation of tenders of Indian Railways for Brushless DC fans amongst themselves under an agreement/ arrangement and indulged in bid rigging/ collusive bidding in contravention of the provisions of Section 3(3)(c) and 3(3)(d) read with Section 3(1) of the Act.
The anti-competitive conduct of the firms has been established based on exchange of rates to be quoted in upcoming tenders amongst the errant firms, numerous calls amongst the key persons of these firms before and during the period of the tenders and admission by one of the firms which confirmed and revealed the existence and modus operandi of the cartel.
CCI had received an application under Section 46 of the Act read with Regulation 5 of the Competition Commission of India (Lesser Penalty) Regulations, 2009 from M/s Pyramid Electronics. This application was received when the investigation in the matter was in progress and the report from the DG was pending.
Considering the co-operation extended by M/s Pyramid Electronics in conjunction with the value addition provided by it in establishing the existence of cartel and the stage at which it had approached CCI, it was granted 75 percent reduction in the penalty than would otherwise have been imposed, had it not cooperated with the Commission. Accordingly, the penalty imposed on M/s Pyramid Electronics was reduced to Rs. 15.59 lakhs and penalty imposed on Shri Sandeep Goyal was reduced to Rs. 11,648 only.
A final order has been passed by CCI in a case taken up suo moto under Section 19 of the Competition Act, 2002 (‘the Act’) based on the information received from Central Bureau of Investigation, New Delhi.
UNI ADP SB 2029
Please log in to get detailed story.
Tags: #CCI imposes penalty on bidders for cartelisation in tenders of Indian Railways
More News
India International Industrial Expo in Kochi from Dec 13-15, 2024

India International Industrial Expo in Kochi from Dec 13-15, 2024

19 Apr 2024 | 12:56 PM

Kochi, Apr 19 (UNI) India International Industrial Expo (IIIE-2024), a gateway to a comprehensive industrial showcase, will be held here on December 13, 14 and 15, 2024 with the participation of more than 10,000 trade visitors and 350 leading Industrial manufacturers, IIIE CEO Siji Nair said on Friday.

see more..
NTPC green energy inks MoU with Indus Towers

NTPC green energy inks MoU with Indus Towers

19 Apr 2024 | 12:05 PM

Mumbai, Apr 19 (UNI) NTPC Green Energy Limited (NGEL) and Indus Towers Limited (ITL) on Friday signed a Memorandum of Understanding (MoU) to address the need for pacing green energy objectives and the GoI’s efforts towards a carbon-neutral economy.

see more..
Rupee opens record low at 83 55 against USD

Rupee opens record low at 83 55 against USD

19 Apr 2024 | 11:50 AM

Mumbai, Apr 19 (UNI) The rupee on Friday opened at a record low of 83.55, declining three paise amid geographical tension between Israel and Iran and rising demand for the US dollar by bankers and importers, dealers at the Foreign Exchange said.

see more..
Sensex drops over 500 points

Sensex drops over 500 points

19 Apr 2024 | 11:31 AM

Mumbai, Apr 19 (UNI) The equity market continued to fall for the fifth consecutive session on Friday as BSE Sensex crashed 539 points to open below 72K at 71,949.65 amid heightened geographical tension, triggering a massive selloff of global equities.

see more..

USD up ; Euro,Pound down

19 Apr 2024 | 10:08 AM

Mumbai, Apr 19 (UNI) Following were the indicative currency rates and travellers' cheques
buying and selling rates.

see more..
image