CCI penalises 7 entities for bid-rigging in Indian Railways tenders

The Competition Commission of India (CCI) on Thursday slapped penalties of nearly Rs 30 lakh on seven entities, including individuals, for indulging in manipulation in the bidding process and cartelisation in the tenders floated by the Indian railways.

The CCI found that seven entities have violated competition norms. Out of 7 entities, the fair trade regulator did not impose any penalty on one entity.

Besides slapping penalties on certain entities, the watchdog has directed them to cease and desist from anti-competitive practices.

The matter was taken up by the CCI following an application filed by one of the cartelising entities.

These entities have indulged in cartelisation in the supply of protective tubes to the Indian Railways by means of directly or indirectly determining prices, allocating tenders, controlling supply and market, co-ordinating bid prices and manipulating the bidding process, CCI said in a release on Thursday.

"Evidence in the matter included regular e-mail communications between the parties and filing of bids from same IP addresses by certain parties etc," it noted.

Further, ten individuals from these seven entities were found guilty of violating the anti-competitive law. Out of these seven entities, one had applied for a lesser penalty under the competition law.

A cartel member can approach the CCI by filing an application seeking a lesser penalty, in return for providing full, true and vital disclosures in respect of the alleged cartel.