CCI slaps Rs 3.40 lakh fine on truck operators society

The Competition Commission has imposed a total fine of Rs 3.40 lakh on Kiratpur Sahib Truck Operators Cooperative Transport Society and its office bearers for indulging in unfair business ways with respect to services of goods transportation in Kiratpur area in Punjab.
The fair trade regulator has also asked the cooperative, which is a grouping of truck owners, to "cease and desist" from acts which are in violation of the competition norms.
A complaint filed with the Competition Commission of India (CCI) had alleged that the cooperative allows only the trucks owned by its members to engage in freight transport of goods from Kiratpur region.

Following a detail probe by its investigation arm -- the Director General (DG) -- CCI ruled that the cooperative "abused its dominant position in the relevant market and limited/restricted the freight transport services...Which has resulted into denial of market access to other competitors in the relevant market".
Among others, the regulator also noted that the members of the cooperative "have agreed with each other to limit supply of the service of freight transport by trucks in Kiratpur region by prohibiting any independent transporter from operating in the market".
Accordingly, in an order released today, CCI has imposed a penalty of Rs 2.28 lakh on the Cooperative and fine totalling to Rs 1.12 lakh on its eight office bearers.

The complaint by Shivam Enterprises, a partnership firm engaged in providing service of freight transport by trucks, had submitted that it has obtained an order for providing freight transport services to Ambuja Cements.
The said order was stated to be awarded on the basis of quoting considerably lower rates as compared to the rates fixed by the cooperative.
However, the members of the cooperative had been forcibly obstructing the Shivam on various occasions in executing its contract of transportation.