Shardul Amarchand Mangaldas and Co. successfully gets reduction of penalty of more than INR 1200 crore for Coal India

Shardul Amarchand Mangaldas and Co. (SAM & Co) acted as the legal advisor to Coal India Limited and its subsidiaries, in the matter involving imposition of a fine on CCI of INR 1773. The Competition Appellate Tribunal (COMPAT) had set aside the order of the CCI imposing a fine on CIL, as well as two related orders and has remitted the matters back to the CCI for fresh consideration.

The CCI in its order has stated that even though CIL enjoys operational commercial freedom, its conduct is constrained by directions received from various stakeholders including Ministry of Power, Ministry of Coal, CEA etc., all of whom exert influence and are involved in making decisions that impact various aspects of CIL's business. Keeping in mind the continuous steps taken by CIL in resolving issues with stakeholders, the CCI has drastically reduced the penalty amount to INR 591.01 crore as opposed to a previous amount of INR 1773 crore. This is for the first time that the CCI has reduced penalty in a case of remand.

The Shardul Amarchand Mangaldas and Co. Team was led by Pallavi Shroff, Regional Managing Partner and included Harman Singh Sandhu, Partner, Yaman Verma, Principal Associate, Toshit Shandilya, Associate, and Gauri Mehta, Associate all from the Competition Law Practice. Shardul Amarchand Mangaldas and Co. briefed Senior Advocate Ramji Srinivasan for this case.

In December 2013, the CCI, further to complaints filed by Maharashtra State Power Generating Company and Gujarat State Electricity Corporation Limited had fined CIL INR 1773 crore for abusing its dominant position as a supplier of coal by imposing unfair and discriminatory conditions in its fuel supply agreements with various customers and directed CIL to cease and desist from its unfair conduct and modify the terms of its agreements.