By way of an April 21 2017 order, the Competition Commission of India (CCI) found Coal India Limited in violation of Section 4 of the Competition Act for abusing its dominant position in the supply of non-coking coal to thermal power plants in India.(1)
By way of a May 17 2016 order, the Competition Appellate Tribunal (COMPAT) set aside the penalty of Rs17.73 billion previously imposed by the CCI on Coal India on the grounds of alleged violation of natural justice and remanded the matter back to the CCI.
The CCI again found Coal India in violation of Section 4 of the act on similar grounds. However, it imposed a reduced penalty at the rate of 1% of the company's turnover. The penalty has been reduced on account of changes implemented to the sampling of coal during the pendency of the proceedings and investigation. Pursuant to modifications to the sampling procedure made in October 2013 (before the passing of the CCI order), Coal India appointed independent third parties through an open-tendering procedure with a view to bring more transparency to the sampling process. The CCI has therefore imposed a reduced penalty of Rs5.91 billion on Coal India with directions to cease and desist from abusive conduct in future.
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Endnotes
(1) CCI decision dated April 21 2017. For full text see www.cci.gov.in.
