Fair trade regulator CCI has dismissed allegations of anti-competitive practices made against two Gujarat-based yarn manufacturers.
The complaint was filed by South Gujarat Warp Knitters Association against Prafful Overseas (OP-1) and Welspun Syntex (OP-2) alleging that they indulged in unfair business practices with respect to certain yarn variants.
To assess the complaint, Competition Commission of India (CCI) considered "market for Nylon FDY 240/12 Bright variant and Mono Yarn variant in India" as the relevant one.
While Prafful Overseas manufactures both semi-dull and bright variants, Welspun Syntex makes semi-dull variant.
In a recent order, CCI rejected the complaint after finding there is no prima-facie evidence of competition norms violations.
Data on international prices relied upon for comparison by the complainant is from Vietnam, but no export of Nylon FDY 240/12 semi-dull variant to India from Vietnam has been reported during the alleged period, as per the order.
Such comparison does not give any clear indication of cartel especially when there is anti-dumping duty on Nylon FDY 240/12 semi-dull variant, the regulator said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)