CCI Rightly Closed BSM Traders’ Case | NCLAT

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  • Last Updated on 7 October, 2025

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CCI BSM traders DGFT IREL NCLAT ruling

Case Details: Beach Mineral Producers Association vs. Government of India - [2025] 178 taxmann.com 588 (NCLAT- New Delhi)

Judiciary and Counsel Details

  • Yogesh Khanna, Judicial Member
  •  Ajai Das Mehrortra, Technical Member
  • Kinngsly Solomon J., G. Balaji & A.R. Rubhavathy, Advs. for the Appellant
  • Soni Singh, Ms. Parkhi Singh, Balaji Subramaniaum, Ms. Aayushi Sharma, Akash Kundu, Advs. & Ms Sunaina Dutta, Joint Secretary for the Respondent

Facts of the Case

In the instant case, the appellants were dealers/traders in Beach Sand Minerals (BSM). They filed information against the Directorate General of Foreign Trade (DGFT), alleging a violation of the provisions of Section 4 of the Competition Act, 2002.

They alleged that, vide notification, the DGFT brought the export of BSM under the State Trading Enterprise (STE) and, consequently, Indian Rare Earths Limited (IREL) was designated as a canalising agent for the export of all BSMs.

The CCI, by the impugned order closed information under provisions of section 26(2) of the Act, observing that change in export policy by the DGFT in pursuance of its statutory duties and implementation thereof by IREL was not amenable for examination within framework of section 4 and therefore, no case of contravention of provisions of section 4 of the Act was made out against OPs.

It was noted that the notification did not stop appellants from doing business with foreign buyers but only said such exports need to be channelised through IREL, in view of material being related to the 1st Schedule of Mines and Minerals (Development and Regulation) Act, 1957 and Prescribed Substances under the Atomic Energy Act, 1962.

NCLAT Held

The NCLAT observed that since section 2(h) of the Act clarifies that ‘enterprise’ does not include any activity of government relatable to sovereign functions of government, including all activities carried on by the Central Government, dealing with atomic energy, etc., provisions of section 4 shall not be applicable in the instant case.

The NCLAT held that the CCI had rightly closed the information under the provisions of Section 26(2) of the Act, as the appellant proposed to challenge the notification, which was, in fact, a policy issue, and this was not a forum to seek orders for its quashing. Therefore, the impugned order did not require interference by this Tribunal.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied