Three companies to pay over Rs 2 cr fine for bid-rigging: CCI

Clamping down on unfair business practices, Competition Commission today slapped more than Rs 2 crore fine on three companies as well as three officials for rigging bids with respect to tenders floated by Indian Railways.
The matter, pertaining to tenders floated by the Indian Railways for procurement of brushless DC fans in 2013, was taken up by the regulator based on information received from CBI.
After a detailed investigation, Competition Commission of India (CCI) found that the firms had shared the market by way of allocation of tenders of Indian Railways for brushless DC fans amongst themselves.
The three companies indulged in "bid rigging/ collusive bidding", the regulator said.

"The anti-competitive conduct of the firms has been established based on exchange of rates to be quoted in upcoming tenders amongst the errant firms, numerous calls amongst the key persons of these firms before and during the period of the tenders," it said in a release.
Besides, the watchdog said there was admission by one of the firms which confirmed and revealed the existence and modus operandi of the cartel.

Western Electric and Trading Company has been directed to pay Rs 2.09 crore as fine while Pyramid Electronics and R Kanwar Electricals have been penalised to the tune of Rs 62.37 lakh and Rs 20.01 lakh, respectively.

According to the release, the fine on Western Electric and Pyramid Electronics translates to 1 per cent of their profit in 2012-13 period.
In the case of R Kanwar Electricals, the penalty amounts to 3 per cent of its turnover for the year 2012-13.
Taking into consideration the cooperation extended by Pyramid Electronics, CCI has granted 75 per cent reduction in the penalty.
The penalty imposed on Pyramid Electronics was reduced to Rs 15.59 lakh, the release said.