Coal News We love to talk!

JAN 12 2018

CCI issues order against Nair Coal Services

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 12th JAN 2018

 

The Competition Commission of India (CCI) on Thursday issued an order against Nair Coal Services Pvt. Ltd., Karam Chand Thapar and Bros (CS) Ltd. and Naresh Kumar and Co. Pvt. Ltd. for rigging bids and dividing market by forming hardcore cartel in respect of tenders floated by Maharashtra State Power Generation Co. Ltd. (MAHAGENCO) for procuring coal liasoning services.

The CCI said that it found the companies to be in contravention of the provisions of Section 3(1) read with Section 3(3)(c) and Section 3(3)(d) of the Competition Act, 2002 for acting in a collusive and concerted manner which eliminated and lessened the competition besides manipulating the bidding process in respect of the tenders floated by MAHAGENCO for award of contract of coal liasoning work for its various thermal power stations.

Taking a serious view of the collusive conduct of coal liasoning agents, the CCI opined that the case fell in the category of hardcore cartels as the parties reached an agreement to submit collusive tenders and to divide the markets which warranted the matter to be dealt with utmost severity.

Accordingly, CCI invoked the stringent provision of the law which enables it to impose a higher penalty in case of agreements entered into by cartels.

Hence, a penalty at the rate of two times of the total profits earned from the provision of coal liasoning services to all power generators for the continuance of the cartel for 2010-11 to 2012-13 years was imposed upon the parties.

Resultantly, CCI has imposed a penalty of Rs. 7.16 crore, Rs. 111.60 crore and Rs. 16.92 crore upon NCSL, KCT and NKC for the anti-competitive conduct. A cease and desist order was also issued against the above companies.

The CCI has also deprecated the conduct of the informant in breaching the confidentiality and sanctity of the inquiry by circulating copies of the investigation report to B.S.N Joshi and Sons Ltd., a rival of the opposite parties, who, in turn, forwarded copies thereof to various authorities. The order was passed on January 10, 2018, in Case No. 61 of 2013. (ANI)

Tags

TOTAL Maharashtra Coal Power Generation Competition Commission Of India Mahagenco Power India

Related News

  • Mytrah Energy raises $70 million from from Merrill Lynch  Read more
  • R-Infra gains as construction biz get a boost, EPC order book triples  Read more
  • Power grid asks CERC to cancel 2 Reliance Infrastructure projects  Read more
  • Improvement in peak power shortage in Feb: CEA  Read more
  • 102 villages in Jammu region "un-electrified", says state power minister  Read more
  • Haryana discom to catch power thieves on camera  Read more
  • Govts electric vehicle campaign can create $300 billion domestic battery market: NITI Aayog  Read more
  • GAIL may get Rs 400-cr boost after hike in KG pipeline tariff  Read more
  • I-T dept slaps Rs. 29,000 cr tax demand notice on Cairn Energy  Read more
  • Railways rationalises coal tariff  Read more