CCI orders probe against Haryana Public Works Department

The Competition Commission has ordered a detailed probe against Haryana Public Works Department for alleged unfair business practices in a tender document related to a rail over bridge in the state.
After finding prima facie evidence of violation of competition norms, the regulator has decided to start investigation against Haryana Public Works (Building and Road) Department.
The allegations pertain to a tender document for construction of approaches to two-lane rail over bridge at a railway crossing in Karnal district.
The complaint was made by a director at Uttar Pradesh- based contractor Dwarika Projects. It was also filed against Secretary and Superintending Engineer of the Haryana Public Works (Building and Road) Department.

To assess the merits of the allegation, Competition Commission of India (CCI) considered "the market for procurement for construction and repair of roads and bridges through tendering in the state of Haryana" as the relevant one.
In an order issued on Monday, the regulator said some of the clauses of the bid document "prima facie" appear to be in contravention of the provisions of Section 4 of the Competition Act.

Section 4 of the Competition Act pertains to abuse of dominant position.
Ordering a detailed probe by the Director General (DG), the regulator said "prima facie the possibility of the contractor being paid less than the agreed amount in an arbitrary manner" by Haryana PWD (B&R) by virtue of clause 30 (a) of the 'Information to Bidders' cannot be ruled out.

As per the bid agreement, clause 30(a) of the 'Information to Bidders' provides that payment is to be made to the contractor as per the lowest amount worked out from three criteria prescribed.
DG is the investigation arm of CCI and cases where there is prima facie evidence of competition norms violations are referred to it for detailed probe.