CCI dismisses complaint against UP PWD

Don't want to miss the best from Business Standard?

Fair trade regulator CCI has dismissed a complaint alleging abuse of dominant market position against Uttar Pradesh Public Works Department (UPPWD) with regard to procurement of bricks for construction activities.

"... the Commission finds that no case of contravention of the provisions of Section 4 of the (Competition) Act is made out against the OP (UPPWD) in the instant matter," the CCI said in a recent order.

Section 4 pertains to abuse of dominant market position.

The allegations related to non-compliance of fly ash notifications, issued by Ministry of Environment, Forests & Climate Change, which has an effect on procurement of fly ash based bricks for construction activities by UPPWD.

For the case, the Competition Commission of India (CCI) considered the "market for procurement of bricks for construction activities in the state of Uttar Pradesh" as the relevant one.

In its order, the CCI said the data related to the share of construction activities referred by the complainant relates to only civil construction activities and does not include other construction activities undertaken by private players in the organised and unorganised sector in Uttar Pradesh.

"The Commission is of the view that the overall consumer base for procurement of bricks is very wide and procurement of bricks undertaken by OP (Opposite Party) would be relatively marginal," the regulator said.

Noting that UPPWD "does not enjoy a dominant position in the relevant market" as a procurer, the regulator said the department does not possess the ability, as a buyer, to influence the relevant market.

With regard to allegations of non-compliance of fly-ash notifications, the regulator observed that the remedy "does not lie with the Commission as it does not raise any competition issue".