CCI dismisses complaint against SAIL for anti-competitive practice as there was no concrete evidence of bid-rigging

Case details: Steel Authority of India Ltd. v. Mahimanand Mishra - [2021] 129 taxmann.com 339 (CCI)

Judiciary and Counsel Details

• • Ms. Ashok Kumar Gupta, Chairperson, Ms. Sangeeta Verma and Bhagwant Singh Bishnoi, Member.

Facts of the Case

The informants i.e., SAIL and Paradip Port Trust, filed information against opposite parties alleging contravention of provisions of section 3 of the Competition Act. It was alleged that despite the transparent tendering process followed by SAIL for engaging services of stevedoring contractor at Paradip Port, illegal cartelization had occurred among stevedoring agencies at Paradip Port and SAIL had become a victim of same.

The Informants prayed that case might be investigated by Director General and Commission might pass suitable orders or directions against OPs which were stevedoring agencies so as to bring about an end to the alleged practice of cartelization in stevedoring at Paradip Port.

However, the allegations raised by Informants against opposite parties were not concrete in nature and merely contained general allegations of the existence of cartel between stevedores in Paradip Port involving opposite parties without indicating the nature of the cartel, who all were members of the cartel, how cartel operated, restrictions brought about by cartel in terms of section 3(3) and how bids issued by SAIL had been manipulated or rigged by members of cartel including opposite parties.

CCI Held

Since in absence of any concrete information/evidence, there existed no prima facie case, and information filed was directed to be closed forthwith against opposite parties under section 26(2) of the Competition Act, 2002.