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

  • Blog|Competition Law|News|
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 26 November, 2021

Prohibition of agreements - Anti-competitive agreements

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.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

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