{"id":196648,"date":"2018-06-06T14:35:48","date_gmt":"2018-06-06T09:05:48","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=196648"},"modified":"2018-06-06T14:35:48","modified_gmt":"2018-06-06T09:05:48","slug":"cci-decides-lesser-penalty-cases-relating-to-tenders-of-pune-municipal-corporation","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/06\/cci-decides-lesser-penalty-cases-relating-to-tenders-of-pune-municipal-corporation\/","title":{"rendered":"CCI decides Lesser Penalty cases relating to tenders of Pune Municipal Corporation"},"content":{"rendered":"<div class=\"ReleaseDateSubHeaddateTime text-center pt20\" style=\"text-align: justify;\"><strong>Competition Commission of India (CCI):<\/strong> 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 the Act based on the disclosure by firms under Section 46\u00a0of the Competition Act, 2002 (\u2018the Act\u2019) read with the Competition Commission of India (Lesser Penalty) Regulations, 2009 (\u2018Lesser Penalty Regulations\u2019). All firms in these cases had\u00a0approached CCI as lesser penalty applicants.<\/div>\n<p style=\"text-align: justify;\">While in one case, the tenders pertained to Financial Year 2013-14, in other case the tender pertained to Financial Year 2014-15.\u00a0From the evidence\u00a0gathered during investigation,\u00a0CCI found that\u00a0there\u00a0was bid rigging\/collusive bidding in the Tender Nos. 21 and 29 of 2013 and Tender No. 59 of 2014 floated by Pune Municipal Corporation for Solid Waste Processing Plant(s), in contravention of Section 3(3)(d) read with Section 3(1) of the Act by way of submitting proxy\/ cover bids.<\/p>\n<p style=\"text-align: justify;\">In case involving tender floated in Financial Year 2013-14 penalty was imposed on four firms in terms of Section 27(b) of the Act at the rate of 10 percent of their average turnover for the years 2011-12, 2012-13 and 2013-14\u00a0<em>i.e.<\/em>\u00a0three years preceding the year in which collusion took place. An amount of INR 46.45 Lakhs was imposed on Saara Traders Pvt. Ltd. (Saara), INR 33 Lakhs on Ecoman Enviro Solutions Pvt. Ltd. (\u2018Ecoman\u2019), INR 11 Lakhs on Fortified Security Solutions (\u2018Fortified\u2019) and INR 26.40 Lakhs on Raghunath Industry Pvt. Ltd. (\u2018Raghunath\u2019). The\u00a0penalty was also imposed on individual officials of three firms, namely, Saara, Ecoman and Raghunath\u00a0at the rate of 10 percent of their average income for the same three years.\u00a0No penalty was imposed on individual of Fortified as it is a proprietorship firm. Further, in view of penalty already levied in Case No. 50 of 2015 for infringement during the period 2014-15, no penalty was levied in case involving tender floated in financial year 2014-15.<\/p>\n<p style=\"text-align: justify;\">Keeping in view the\u00a0modus operandi\u00a0of the cartel, the stage at which the lesser penalty application was filed, the evidences gathered by the DG independent of lesser penalty application and co-operation extended in conjunction with the value addition provided in establishing the existence of cartel,\u00a0CCI granted\u00a050 percent reduction in penalty to\u00a0Saara and its individuals\u00a0than otherwise leviable. Pursuant to reduction, penalty imposed on Saara was\u00a0INR 23.22 Lakh and INR 74,513 on its individual. [In re, Cartelization in Tender Nos. 21 and 28 of 2013 of Pune Municipal Corporation for Solid Waste Processing, Suo Motu Cases Nos. 03 and 04 of 2016, decided on 31.5.2018]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Competition Commission of India (CCI): The CCI has passed final order in two cases involving bid rigging\/collusion in three tenders floated by <\/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":[13401,3641,5461,30348,30347,30349,21072],"class_list":["post-196648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-bid-rigging","tag-cartelization","tag-cci","tag-collusion","tag-lesser-penalty-cases","tag-pune-municipal-corporation","tag-tender-process"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>CCI decides Lesser Penalty cases relating to tenders of Pune Municipal Corporation | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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