CCI rejects complaint against DIAL over airport security service contracts

The competition watchdog found no evidence of abuse of dominance by Delhi International Airport Ltd in awarding security service contracts at Indira Gandhi International Airport

The Competition Commission of India (CCI) on Thursday closed a complaint against Delhi International Airport Ltd (DIAL) after finding no evidence of abuse of dominance in awarding security service contracts at Indira Gandhi International Airport.

 

The CCI closed the case at the preliminary stage, dismissing allegations that DIAL awarded security contracts to RAXA Security Services, a subsidiary of the GMR Group, without following a transparent competitive bidding process.

 

"The Commission deems it appropriate not to interfere with the commercial decisions made by the entities in the normal course of business unless the same raises any anti-competitive concern," the antitrust watchdog said in its order.

   

The complaint was filed by Swam Kartik Sharma, director of Galaxy Security and Allied Services Pvt Ltd, who alleged that DIAL denied market access to other security service providers, creating a monopolistic environment, and that the arrangement violated the Operation, Management and Development Agreement (OMDA) governing the airport concession.

 

After seeking a detailed response from DIAL, the CCI concluded that the tender was awarded in compliance with the provisions of the OMDA and on an arm's-length basis.

 

"In a catena of cases, the Commission has already opined that the procurer must have the freedom to exercise its choice freely in the procurement of goods and services, following the law of the land," the CCI order said.

 

While examining the complaint, the CCI noted that RAXA was awarded the tender for providing security services at Indira Gandhi International Airport (IGIA) after adhering to a competitive bidding process.

 

On the allegations of selectively awarding the tender to an entity such as RAXA, in which GMR holds a 100 per cent stake, DIAL told the CCI during the proceedings that multiple parties participated in the bidding process and none of the bidders were related parties except RAXA. It stated that there is no restriction under the OMDA on awarding contracts to related parties or group companies, provided the provisions of the OMDA are followed.

 

DIAL said the allegation of stifling competition and excluding competitors is "thoroughly misplaced", given that for all the tenders undertaken by DIAL in 2007, 2014, 2020, 2022 and 2025, a competitive bidding process was followed in full compliance with the OMDA and applicable laws, and contracts were awarded on an arm's-length basis.

 

"Based on the material placed on record by DIAL, the Commission is of the view that the allegations raised regarding contravention of Section 4(2)(a)(i) of the Act are not established," the regulator said.

 

The Commission also rejected allegations of bid rigging under Section 3, observing that the informant had placed no material on record indicating any collusive conduct.