CCI closes case against Kerala State Construction Corp

With a detailed probe finding no violation of fair trade norms, Competition Commission has closed the case against the Kerala government, Kerala State Construction Corp and two others related to civil construction works space.
After seeing prima-facie merit in the allegations against the four parties, Competition Commission of India (CCI) had ordered an investigation by its Director General in late 2013.
The complaint was filed by Builders Association of India (Kerala Chapter) -- which is a grouping of contractors, real estate developers, manufacturers and dealers of construction machineries and materials in India.
It had complained against the Kerala government, Kerala Public Works Department and the state's Finance Department.

The allegations pertained to unfair practices in awarding of civil works contracts, among others.
As the Competition Act is applicable only on enterprises, Kerala government, Kerala Public Works Department and the state's Finance Department do not fall under this ambit.

Hence, the Commission decided to look only at the activities of Kerala State Construction Corp.
To ascertain whether Kerala State Construction Corp abused its dominant position, the regulator considered 'provision of services for civil construction work of the government in the State of Kerala' as the relevant market.
"Since, the opposite party No 3 (Kerala State Construction Corp) is not in a dominant position in the said relevant market; its conduct need not be examined under the provisions of section 4 of the Act," the order, dated May 12 and made public recently, said.

The watchdog also did not find any evidence of possible cartelisation among the parties.
"... The Commission is of opinion that no case of contravention of the provisions of either section 3 or 4 of the Act is made out against the Opposite Parties and the matter is ordered to be closed forthwith," the order noted.
Competition Act's section 3 pertains to cartelisation while section 4 relates to abuse of dominant position.
In a separate order, the CCI has rejected allegations of unfair business practices against Greater Noida Industrial Development Authority and others.
The complaint was also made against Yamuna Expressway Industrial Development Authority, New Okhla Industrial Development Authority and Uttar Pradesh State Industrial Development Corporation Ltd.

The allegations pertained to allotment of land on leasehold basis, illegal and discriminatory terms and conditions, illegal transfer charges and among others.
In its order, dated May 22, the Commission said it has not found any "prima facie case of contravention of the provisions of section 4 of the Act".