Competition Commission rejects complaint against ONGC

It was alleged that ONGC abused its dominant market position and indulged in bid-rigging

Fair trade regulator CCI has rejected allegations that state-run ONGC indulged in anti-competitive practices with regard to bids and related conditions in hiring hydraulic cranes.

It was alleged that Oil and Natural Gas Corporation of India (ONGC) abused its dominant market position and indulged in bid-rigging.

Rejecting the complaint against the public sector major, Competition Commission of India (CCI) said "no prima facie case is made out against opposite party (ONGC)".

In its order dated July 5, the Commission said the informant, an Assam-based civil and transport contractor, did not submit any evidence of bid rigging with respect to tenders floated by ONGC for hiring hydraulic cranes.

It was also alleged that ONGC abused its dominant position by prescribing eligibility criteria that were unfair and discriminatory.

The regulator said that ONGC did not appear to be in dominant position because hydraulic cranes are hired in large scale not only by the other oil and gas exploration companies, but also by public and private sectors companies engaged in various other activities.

Cartelisation and abuse of dominant position are deemed anti-competitive under Sections 3 and 4 of the Competition Act, respectively.

The complaint pertains to ONGC notice, issued in December 2012, inviting bids under two bids system from domestic bidders for hiring of 174 hydraulic cranes for the onshore deployment within the country for three years.

For North Eastern Sector, which included Assam, Tripura and West Bengal, bids were invited for 71 cranes.