CCI imposes Rs 29 lakh fine on PMP Infratech, Rati Engineering, 2 others

The Competition Commission of India (CCI) on Monday slapped a total fine of Rs 29 lakh on PMP Infratech Pvt Ltd, Rati Engineering and individuals who managed and controlled the firms for indulging in concerted practices leading to bid rigging of a tender floated by GAIL.

The regulator has also asked them to cease and desist from indulging in unfair business practices in the future.

See Zee Business Live TV Streaming Below:

The regulator has imposed fine of Rs 25 lakh on PMP Infratech Pvt. Ltd, Rs 2.5 lakh on Rati Engineering and Rs 1.5 lakh on their respective individuals who managed and controlled the firms.

The individuals are PMP Infratech's director Mukesh Patel and partner of Rati Engineering Gautam K Bhesania.

"The Commission directs the above OPs and their respective individuals to deposit the penalty amount within 60 days," the regulator said.

The matter pertains to a tender floated by GAIL in 2017-18 for the restoration of well site located in Ahmedabad and Anand areas of Gujarat.

Based on investigation and evidence collected by the investigative arm of CCI-- director general (DG)-- as well as other evidences, the regulator found that "the two firms were in regular touch with each other regarding the tender floated by GAIL and even after the submission of their bids."

Also, the bids of the firms were submitted from the same IP address from the premises of PMP Infratech's office in Ahmedabad, with a one-day gap.

The CCI found such conduct to be in contravention of Section 3 of the Competition Act, 2002 which prohibits anti-competitive agreements including bid rigging.

"The Commission is of the opinion that the OPs indulged in anti-competitive agreement/conduct and concerted practices leading to collusive bid rigging of 'T-2' tender during FY 2017?18 floated by GAIL, and thereby contravened the provisions of Section 3(3)(d) read with Section 3(1) of the Act," the CCI said.

OPs refer to the opposite parties-- PMP Infratech and Rati Engineering.