CCI Penalises 7 Firms Found Guilty of Bid Rigging in Indian Railways Tenders

The Competition Commission of India (CCI) issued a final order today against seven (07) companies/firms that were deemed to have violated the provisions of the anti-competitive agreement and Penalises 7 Firms Found Guilty of Bid Rigging in Indian Railways Tenders

The case was brought after one of the cartelising businesses filed a reduced penalty motion. A cartel member may approach the Commission by filing an application for a lighter penalty in exchange for providing complete, true, and vital disclosures about the putative cartel to the Commission, as set forth in Section 46 of the Act.

CCI discovered that these seven (07) companies/firms engaged in cartelization in the provision of Protective Tubes to the Indian Railways by establishing prices, allocating tenders, controlling supply and market, coordinating bid prices, and manipulating the bidding process directly or indirectly. Regular e-mail conversations between the parties, as well as the filing of bids from the same IP addresses by certain parties, were among the evidence presented in the case.

Furthermore, the CCI found ten (10) individuals from these seven (07) entities to be accountable for the anti-competitive behavior of their respective companies/firms under Section 48 of the Act.

Companies/firms and their specific persons found guilty of breaking the Act’s requirements were fined 5% of their average turnover/ revenue by CCI. The lesser penalty petitioner, on the other hand, received a 100 percent decrease in penalty under the requirements of Section 46 of the Act. Following the reduction, the CCI ordered the parties to pay around INR 30 lacs in penalties and issued a cease-and-desist order.

The order was issued in Suo Motu Case No. 06 of 2020, and a copy can be found on the CCI’s website at www.cci.gov.in.