CCI penalises 7 entities for bid-rigging in tender related to SBI signage

Competition Commission has slapped penalties on seven entities and their officials for bid-rigging activities and cartelisation with respect to supply of signage for branches, offices and ATMs of State Bank of India.

Besides imposing fines totalling over Rs 1.29 crore on the 7 entiites and 9 officials, they have also been directed to cease and desist from indulging in anti-competitive practices. The nine officials of the firms are facing a total fine of over Rs 54,000.

Competition Commission of India (CCI) suo moto decided to look into the matter after receiving a complaint in 2018 wherein it was alleged that there was bid-rigging and cartelisation in the tender floated by SBI Infra Management Solutions Pvt. Ltd. The tender was floated in March 2018.

An investigation inter-alia found e-mails exchanged between the parties which formed the basis for manipulation of the bidding process, the regulator said in a release on Friday.

The seven entities that have been penalised are Diamond Display Solutions Pvt Ltd, AGX Retail Solutions Pvt Ltd, Opal Signs Pvt. Ltd, Avery Dennison Pvt Ltd, Amreesh Neon Pvt Ltd, Macromedia Digital Imaging Pvt Ltd and Hith Impex Pvt Ltd.

A tender was floated by by SBI Infra Management Solutions for the supply and installation of new signage, replacement of existing signage for branches, offices and ATMs of SBI located at specified metro centres of various circles of SBI across the country.

The companies coordinated and fixed the prices of their services as well as allocated the market amongst themselves, with the object of distorting the fair bidding process, as per CCI order.

The regulator has imposed a fine of Rs 23.86 lakh on Diamond Display Solutions, Rs 6.32 lakh on AGX Retail Solutions, Rs 3.14 lakh on Opal Signs, Rs 1.25 lakh on Avery Dennison, Rs 32.15 lakh on Amreesh Neon, Rs 51.77 lakh on Macromedia Digital Imaging and Rs 5.94 lakh on Hith Impex.

"Considering that one party has filed lesser penalty application besides cooperating during investigation as well as inquiry process and that most of the parties are MSMEs - some of which even acknowledged their conduct during the inquiry, CCI took a lenient view and decided to impose penalty upon the parties @ 1 per cent of their respective average turnover," the release said.