{"id":161844,"date":"2017-10-06T10:28:07","date_gmt":"2017-10-06T04:58:07","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=161844"},"modified":"2017-11-10T12:05:31","modified_gmt":"2017-11-10T06:35:31","slug":"cci-issues-order-against-grasim-industries-aditya-birla-chemicals-and-gujarat-alkalies-for-bid-rigging-costs-imposed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/10\/06\/cci-issues-order-against-grasim-industries-aditya-birla-chemicals-and-gujarat-alkalies-for-bid-rigging-costs-imposed\/","title":{"rendered":"CCI issues order against Grasim Industries, Aditya Birla Chemicals and Gujarat Alkalies for bid rigging, costs imposed"},"content":{"rendered":"

Competition Commission of India: <\/strong>The Competition Commission of India (CCI) has found Grasim Industries Limited (GIL), Aditya Birla Chemicals (India) Ltd. (ABCIL) and Gujarat Alkalies and Chemicals Ltd. (GACL)to be in contravention\u00a0 of the provisions of Section 3(1) read with Section 3(3)(d) of the Competition Act, 2002 for rigging Delhi Jal Board tenders which were floated for procurement of Poly Aluminium Chloride\u00a0 (PAC) which is used for purification of water. \u00a0The final order was passed on a reference filed by Delhi Jal Board (DJB).<\/p>\n

While rejecting the plea of being single economic entity taken by GIL and ABCIL, CCI noted in the order that these two companies are not only separate legal entities but also have participated in these tenders individually and separately. Further, CCI noted that the concept of single economic entity has no application in the context of the proceedings initiated under Section 3(3) of the Act, especially in a case of bid rigging\/collusive bidding.<\/p>\n

Apart from issuing a cease and desist order against the above companies, CCI has imposed a penalty of Rs. 2.30 crore, Rs. 2.09 crore and Rs. 1.88 crore upon GIL, ABCIL\u00a0 and GACL respectively for the anti-competitive conduct. The penalty has been levied @ 8 % of the average relevant turnover of GIL and ABCIL of preceding three years. In case of GACL, penalty has been levied @ 6 % of the average relevant turnover of preceding three years. The conduct of GIL and ABCIL was noted by the Commission as egregious as these companies while apparently submitting separate bids, prepared and finalised the same through common channels creating a facade of competitive landscape.<\/p>\n

Vide separate order passed in another reference filed by DJB in respect of alleged bid rigging in the tenders floated for Liquid Chlorine- another chemical used for purification of water, CCI found no contravention as no analysis was done by the Director General with respect to basic price, transportation cost, taxes and policy of profit margin of the parties as was done in the previous reference. [In re, Delhi Jal Board v. Grasim Industries Ltd., 2017 SCC OnLine CCI 48<\/a>, decided on 05.10.2017]<\/p>\n","protected":false},"excerpt":{"rendered":"

Competition Commission of India: The Competition Commission of India (CCI) has found Grasim Industries Limited (GIL), Aditya Birla Chemicals (India) Ltd. (ABCIL) <\/p>\n","protected":false},"author":91,"featured_media":76441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[18481,13401,18751,23394],"class_list":["post-161844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-anti-competitive-conduct","tag-bid-rigging","tag-competition-act","tag-delhi-jal-board"],"yoast_head":"\nCCI issues order against Grasim Industries, Aditya Birla Chemicals and Gujarat Alkalies for bid rigging, costs imposed | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2017\/10\/06\/cci-issues-order-against-grasim-industries-aditya-birla-chemicals-and-gujarat-alkalies-for-bid-rigging-costs-imposed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CCI issues order against Grasim Industries, Aditya Birla Chemicals and Gujarat Alkalies for bid rigging, costs imposed\" \/>\n<meta property=\"og:description\" content=\"Competition Commission of India: The Competition Commission of India (CCI) has found Grasim Industries Limited (GIL), Aditya Birla Chemicals (India) Ltd. 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3x"},"classes":[]},{"id":101001,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/01\/25\/cci-imposes-penalties-on-cement-companies-for-bid-rigging\/","url_meta":{"origin":161844,"position":1},"title":"CCI imposes penalties on cement companies for bid-rigging\u00a0","author":"Saba","date":"January 25, 2017","format":false,"excerpt":"Competition Commission of India (\u2018CCI\u2019): CCI has imposed penalties on 7 cement companies for bid rigging of a tender floated by the Director, Supplies & Disposals, Haryana, in the year 2012, for procurement of cement to be supplied to Government Departments\/ Boards\/ Corporations in the State of Haryana.\u00a0A final order\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case 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3x"},"classes":[]},{"id":221480,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/25\/cci-approves-acquisition-of-shareholding-in-aditya-birla-capital-ltd-by-jomei-investments-ltd\/","url_meta":{"origin":161844,"position":3},"title":"CCI approves acquisition of shareholding in Aditya Birla Capital Ltd. by Jomei Investments Ltd.","author":"Bhumika Indulia","date":"October 25, 2019","format":false,"excerpt":"CCI approves acquisition of 4.15% of the shareholding in Aditya Birla Capital Limited by Jomei Investments Ltd. of Combination under Section 31(1) of the Competition Act, 2002 The Competition Commission of India (CCI) approved acquisition of 4.15% of the shareholding in Aditya Birla Capital Limited (ABCL) by Jomei Investments Limited\u2026","rel":"","context":"In "Business News"","block_context":{"text":"Business 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The claims are made without any regard for truth and appear to be designed to manipulate or mislead\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":196648,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/06\/cci-decides-lesser-penalty-cases-relating-to-tenders-of-pune-municipal-corporation\/","url_meta":{"origin":161844,"position":5},"title":"CCI decides Lesser Penalty cases relating to tenders of Pune Municipal Corporation","author":"Saba","date":"June 6, 2018","format":false,"excerpt":"Competition Commission of India (CCI): The CCI has passed final order in two cases involving bid rigging\/collusion in three tenders floated by Pune Municipal Corporation for Design, Supply, Installation, Commissioning, Operation and Maintenance of Municipal Organic and Inorganic Solid Waste Processing Plant(s).\u00a0These\u00a0cases\u00a0were taken up by CCI\u00a0suo motu\u00a0under Section 19 of\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/161844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=161844"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/161844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/76441"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=161844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=161844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=161844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}