Coal India appeals against CCI's Rs 1,773 crore penalty order

According to the order, company abused its dominance and did not try to evolve terms and conditions of FSAs through a mutual bilateral process with procurers

State-run Coal India has moved the Competition Appellate Tribunal against a CCI order slapping Rs 1,773 crore penalty on it for unfair trade practices.

Competition Commission of India (CCI) last month imposed the fine on Coal India, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.

Challenging the order dated December 9, the company has filed an appeal with Compat, which is expected to hear the matter next week.

On December 11 last year, Coal India had said that an appropriate legal action shall be initiated after the receipt of the copy of the order by post.

In its order, CCI had said that Coal India is operating independently of market forces and enjoys an undisputed dominance in the country for production and supply of non-coking coal.

According to the order, Coal India abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs through a mutual bilateral process with procurers.

" ... The same were sought to be imposed upon the buyers without seeking, much less considering, the inputs of the power producers," it had said.

CCI has also directed the company to cease and desist from anti-competitive practices.