CCI dismisses allegations of anti-competitive conduct against industrial development companies

By way of an October 9 2017 order, the Competition Commission of India (CCI) dismissed allegations of anti-competitive conduct against Maharashtra Industrial Development Corporation and Royal Power Trunkey Implements Private Limited.

Claimant Maharashtra Electrical Engineers Association is a registered association of electrical contractors under the Labour Association Act 1926. It was established with the aim of safeguarding the interests of its members, which provide infrastructural facilities in the layout of special economic zones by providing, erecting and commissioning transformers and sub-stations. The claimant argued that in an April 3 2017 bid with respect to a tender for the installation, erection, commissioning and operation of a lift in the Aurangabad industrial area (including the construction of Classes I, II, III and IV quarters and the provision of internal and external electricity, lifts, fire-fighting arrangements and other miscellaneous works), Maharashtra Industrial Development granted the tender arbitrarily to Royal Power Trunkey Implements, which did not hold a valid licence from the authorities to perform the contract.

The CCI observed that the claimant had submitted no evidence that could be examined under Section 3 of the Competition Act. Similarly, no term of any tender had been highlighted which could be examined under Section 4 of the act. The claimant's grievance stemmed from the defendants' alleged non-adherence to tender conditions and circulars. Therefore, the CCI opined that no case regarding violation of the Competition Act had been made against the defendants, and closed the case under Section 26(2) of the act.

For further information on this topic please contact MM Sharma at Vaish Associates by telephone (+91 11 4249 2525) or email ([email protected]). The Vaish Associates website can be accessed at www.vaishlaw.com.

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