Competition Comm dismisses complaint against Coal India, its subsidiary

The Competition Commission of India (CCI) has dismissed a complaint against state-owned Coal India and its subsidiary, Western Coalfields, alleging unfair business practices regarding fuel supply agreements.

Udaipur-based Hindustan Zinc Ltd in a complaint had alleged that Coal India abused its dominant position by imposing unilateral and unfair conditions in the fuel supply agreements (FSA) and acted in a discriminatory manner during the supply of coal.

The complainant alleged that it violated Section 4 of the Competition Act which pertains to abuse of dominant position.

In a nine-page order dated December 3, the CCI said that it has earlier, too, disposed of such cases against Coal India and its subsidiaries where similar allegations were found to be made.

Besides, the issues highlighted by the complainant regarding "sampling procedure, grade slippage/mis-declaration of grades" have been substantially addressed by previously issuing appropriate directions to Coal India and its subsidiaries, CCI noted.

In March 2017, the regulator asked Coal India to modify the FSAs and directed it to incorporate suitable modifications in the pacts to provide for a fair and equitable sampling and testing procedure.

Disposing of the complaint, the CCI said it "need not order investigations based on successive information which may be brought before it by different parties agitating the same issues".

Hence, the case stands disposed of in terms of directions issued by the Commission in the previous cases decided against Coal India and its subsidiaries, CCI said.