CCI orders probe against Adani Gas

Alleged abuse of dominant position in providing natural gas to commercial and domestic users in Faridabad

Fair trade regulator the Competition Commission of India (CCI) has ordered a probe into alleged abuse of dominant position by Adani Gas Ltd (AGL) in providing natural gas to commercial and domestic users in Faridabad near here.

Following complaints filed with it by Faridabad Industries Association (FIA) for alleged abuse of dominance by Adani Gas, the CCI has asked its investigation arm to complete the probe within two months.

FIA has complained to CCI that Adani Gas was putting 'unilateral and lopsided' terms and conditions in Gas Sales Agreement (GSA) with its buyers.

"...It is alleged that AGL being in the driver's seat, is imposing its terms in complete disregard of basic principles of law of contract and has created a situation of 'take it or leave it' for the buyer of gas in Faridabad," the regulator said in a direction to its Director General seeking a probe into the matter.

FIA, an umbrella body of industrial units in Faridabad (Haryana) near here, has also alleged that Adani Gas Ltd has revised the prices of gas "unilaterally and irrationally".

AGL is engaged in the business of setting up distribution network in various cities to supply natural gas to industrial, commercial, domestic and CNG customers.

"On careful consideration of the matter, the Commission is of the opinion that various clauses of GSA prima facie appear to impose unfair conditions or prices upon the buyers in the matter of sale and purchase of gas in contravention of the existing provisions [of the relevant sections of the Competition Act]... And a thorough investigation is required to be made to examine the relevant market, the GSA and the conduct of the opposite party," the CCI said.

These sections prohibit abuse of dominant position by an enterprise or group.