CCI dismisses case against PWD Haryana

The Competition Commission today dismissed a case alleging unfair business practices against the Public Works Department (PWD) of Haryana and its senior officials with regard to tender for construction of rail over bridge.

Dwarika Project Ltd, a company engaged in construction business, had alleged that PWD Haryana while inviting bidding for a construction tender in 2012 incorporated clauses which were allegedly unfair and discriminatory and thus abused its dominant position in civil constructions works in the state of Haryana.

In an order, the CCI on dominance by PWD in the market observed that the total market share of PWD Haryana was around 3 per cent for 2012-2014 while 75-80 per cent of market share was from states like UP, Rajasthan, Madhya Pradesh and Bihar for the same period.

Moreover, contractors were not dependent on PWD Haryana for supplying their services for construction of roads and services as the various contractors, including the company, were providing construction services to other states as well, CCI said.

"There were no restrictions or entry barriers on contractors for participation in bids in tender floated by OP-1(PWD Haryana)," it observed.

"Further, the fact that various contractors including the informant have participated in the tenders floated by PWDs and other agencies of different States and UTs, clearly showed that there were no entry barriers in the relevant market," CCI said.

The Commission said that PWD Haryana has not been found to be dominant and there is no requirement to examine the allegations of abuse of dominance, as in absence of dominance there can be no case of abuse of dominance.

The fair trade watchdog found that the contravention of the provision of Competition Act has not been established in the matter and accordingly it has closed the case.