CCI dismisses complaint against AISTA

The fair trade regulator CCI has dismissed a complaint alleging anti-competitive practices against All India Sugar Trade Association (AISTA).

In a ten-page order, the regulator said, "the Commission finds no case of contravention of the provisions of Section 3(3) read with Section 3(1) of the Act".

Section 3 of the Competition Act pertains to anti-competitive agreements.

The ruling came over complaint filed by a Delhi-based individual who alleged that AISTA is circulating price sensitive information, and forthcoming policy changes by the government in relation to sugar industry on WhatsApp to leading sugar traders, millers, refiners and other unknown persons.

It also alleged that chairman of the association, Praful Jagjivandas Vithalani, in addition to holding a fiduciary capacity, runs few trading firms in Mumbai and entered into an arrangement with AISTA, forming a cartel and indulged in bid rigging by way of pre-determining prices through information exchange.

"The commission does not find any merit in this argument, as the Informant himself has explained, in the information filed by him, the process followed in the daily tenders and has stated that the sugar prices circulated were on the basis of last successful bids.

"This means that such information was already available in public domain post the award of the tender by the sugar mills and the circulation of the same, per se, does not imply that it would become sensitive information," the CCI said.

Moreover, the Competition Commission of India (CCI) said that on account of lack of credible material and information, the commission does not find any merit in the allegations posited by the complainant.