CCI finds no prima facie evidence for probe against CPWD

CCI has decided not to order a detailed probe against the Madhya Pradesh Public Works Department and the Central Public Works Department over accreditation requirements for testing laboratories.
It was alleged that the MPPWD and the CPWD had refused to consider a laboratory for testing construction materials on the premise that it was not accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
As per the complainant -- Prem Prakash who runs Venus Testing and Research Laboratory -- the requirement was unfair as it affected the business of those laboratories which were not accredited by the NABL.

Back in October 2014, the Competition Commission of India (CCI) had rejected the complaint.
The latest ruling comes after the Competition Appellate Tribunal last year called for a detailed probe into the allegations. The complainant had appealed against the CCI rejection.
In an order last week, the regulator concluded that there "exists no prima facie competition issue remaining in the matter for investigation".

CCI came to this conclusion after finding that the MPPWD and the CPWD had removed the requirements relating to accreditation for testing laboratories.
At present, the CPWD is not referring to any particular accreditation body like the NABL, but only to an international standard. The modification made by the Central Public Works Department is in "compliance with the principles of competition law" and would ultimately enhance competition in the market, the order said.

In the case of the MPPWD, the regulator said the entity has done away with the mandatory condition of 20 per cent material testing through NABL-accredited laboratories.
"In light of the recent developments brought to the notice of the Commission by OP-1 (MPPWD) and OP-2 (CPWD), the Commission is of the view that there exists no prima facie competition issue remaining in the matter for investigation," CCI said.