Quotation of higher price as compared to price quoted in previous tender didn’t amount to anti-competitive practice: CCI

Case Details: Together We Fight Society v. SR Parayavaran Engineers (P) Ltd. - [2021] 132 taxmann.com 177 (CCI)

Judiciary and Counsel Details

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

Facts of the Case

In the instant case, the Opposite Parties (OPs) were in business of executing small, medium and large projects for water and water waste management facilities in industrial, municipal and infrastructure segments.

The Informant, a non-governmental organisation, had alleged cartelisation/bid rigging by OPs in a tender floated by Public Health Engineering Department (PHED) for installation and commissioning of Reverse Osmosis (RO) plants in State of Rajasthan – According to informant, the OPs quoted high prices as compared to prices quoted by them in previous tender floated by PHED for similar work, and thus, indicating cartelization amongst Ops.

The Representative of OPs clarified that previous tender was a small pilot work and first of its kind and at time of quoting for previous tender, OPs could not make any realistic assessments of prevailing terms and conditions and thus, quoted a lower price and therefore, rates quoted by OPs earlier should not be construed as basis for quotes made by them in impugned tender.

CCI Held

The Commission observed that the allegations raised by the informant against OPs did not prima facie disclose existence of any concerted action on part of OPs in submitting bids in impugned tender, and therefore, there existed no prima facie case. The CCI therefore, directed to close the information filed was forthwith against OPs under section 26(2) of the Competition Act, 2002.