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CCI issues order against firms guilty of bid-rigging and cartelization

The Competition Commission of India (CCI) issued a final order on Friday against six firms

Topics
Competition Commission of India | CCI | competition law

ANI 

Photo: PTI
CCI found the six firms to have indulged in cartelization in the supply of Low-Density Poly Ethylene covers (LDPE) to Food Corporation of India (Photo: PTI

The (CCI) issued a final order on Friday against six firms that were found to have contravened the provisions of Section 3(1) of the Competition Act, 2002 read with Section 3(3)(d) thereof, which proscribe anti-competitive agreements.

As per an official release issued on Monday, found these firms to have indulged in cartelization in the supply of Low-Density Poly Ethylene covers (LDPE) to Food Corporation of India (FCI) by means of directly or indirectly determining prices, allocating tenders, coordinating bid prices and manipulating the bidding process.

The case was initiated on the basis of a Reference filed on behalf of FCI, informed the release.

"In this backdrop, issued a cease and desist order against the firms found guilty of bid rigging and cartelization in the said tenders floated by FCI. However, refrained from imposing any monetary penalty considering that four out of six firms had filed lesser penalty applications and admitted their conduct, confessed their modus operandi during investigation thereby fully cooperated with CCI," read the release.

"Moreover, the firms were also MSMEs with limited staff/ turnover and the prevailing economic situation arising due to the outbreak of COVID-19, stress wrought upon the MSME sector in the wake of the said pandemic," it added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, November 01 2021. 13:59 IST
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