{"id":263346,"date":"2022-03-09T17:00:01","date_gmt":"2022-03-09T11:30:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=263346"},"modified":"2022-03-25T10:21:09","modified_gmt":"2022-03-25T04:51:09","slug":"7-entities-indulged-in-anti-competitive-agreement-for-supply-of-signages-for-branches-offices-atms-of-sbi-e-mails-exchanged-between-parties-formed-basis-for-manipulation-of-bidding-process","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/09\/7-entities-indulged-in-anti-competitive-agreement-for-supply-of-signages-for-branches-offices-atms-of-sbi-e-mails-exchanged-between-parties-formed-basis-for-manipulation-of-bidding-process\/","title":{"rendered":"7 entities indulged in anti-competitive agreement for supply of signages for branches\/offices\/ATMs of SBI: E-mails exchanged between parties formed basis for manipulation of bidding process | Detailed decision of CCI"},"content":{"rendered":"

Competition Commission of India (CCI): <\/strong>Noting that in respect of cases concerning cartels that are hidden or secret, there is little or no documentary evidence and may be quite fragmentary, Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members)\u00a0 imposed penalties on 7 entities and signages for bid-rigging activities and cartelization with respect to the supply of signage for branches, offices and ATMs of State Bank of India.<\/p>\n

Factual Matrix<\/span><\/h3>\n

Present matter was taken up by the Commission suo motu <\/em>pursuant to a complaint received alleging bid-rigging and cartelization in the tender floated by SBI Infra Management Solution (P) Ltd. for the supply and installation of new signages\/replacement of existing signages for branches\/offices\/ATMs of SBI located at specified metro centres of various circles of SBI across India.<\/p>\n

With the object of distorting the fair bidding process, certain bidders were coordinating and fixing the prices of their services as well as allocating the market amongst themselves.<\/p>\n

As per Commission\u2019s prima facie view<\/em>, case of contravention of the provisions of Section 3(1) read with Section 3(3) of the Act was made out with respect to the Impugned Tender. Hence, DG was directed to investigate.<\/p>\n

DG had concluded that the OP indulged in anti-competitive agreement\/conduct and concerted practices to rig the Impugned Tender, as well as geographically allocated amongst themselves the circles for which the tender was issued, thereby contravening the provisions of Sections 3(3)(c) and 3(3)(d) read with Section 3(1) of the Act. The DG also identified certain individuals of the OPs to be liable in terms of Section 48 of the Act.<\/p>\n

Conclusion<\/span><\/h3>\n

An \u2018agreement\u2019 as given in Section 2(b) of the Act, requires, inter alia, any arrangement or understanding or action in concert, whether or not formal or in writing or intended to be enforceable by legal proceedings.<\/p>\n

\n

Definition under Section 2(b) of the Act covers even those situations where the parties act on the basis of a nod or a wink.\u00a0<\/span><\/p>\n<\/blockquote>\n

Further, it was observed that there is rarely direct evidence of action in concert, Commission must determine whether those involved in such dealings had some form of understanding and were acting in co-operation with each other.<\/p>\n

\n

\u201cSince the prohibition on participating in anti-competitive agreements and bid rigging and the penalties which the infringers may incur are well-known, it is normal for such practices and agreements to take place in a clandestine fashion, for meetings to be held in secret and for associated documentation to be reduced to a minimum.\u201d<\/span><\/p>\n<\/blockquote>\n

\u00a0<\/strong>Commission held that OP-1 to OP-7 had entered into an agreement resulting in geographical market allocation as well as bid-rigging in the Impugned Tender.<\/p>\n

\n

\u201c\u2026cartelisation, including bid-rigging, is a pernicious form of competition law contravention.\u201d<\/span><\/p>\n<\/blockquote>\n

Additionally, Coram also added that, any collusive or concerted conduct amongst competitors by way of exchange of commercial information resulting in inter alia<\/em> determining price or geographical allocation of provision of services etc., itself stands captured within the prohibition imposed and is presumed to have AAEC, by virtue of provisions of Section 3(1) of the Act read with Section 3(3).<\/p>\n

Liability under Section 48<\/em><\/span><\/p>\n

Commission held that it is no longer res integra <\/em>that the Commission can simultaneously proceed against individuals of a company under Section 48 of the Act along with the company and the same has been settled by various decisions of the Courts.<\/p>\n

\n

Section 48(1) of the Act is a deeming provision, which implies that when contravention of any provision of the Act (say Section 3) is committed by a company, then, an individual(s) who was in-charge of and responsible to the company for the conduct of its business at the time of contravention, shall be deemed to be guilty of such contravention<\/em>. <\/span><\/p>\n

Section 48(2) of the Act, all individuals that play an active role in the illegal conduct of a company, are made liable in addition to the company. <\/span><\/p>\n<\/blockquote>\n

Commission decided to impose penalty @1% of the average of individual\u2019s incomes, for the three financial years. Though Commission decided to grant to OP-4 and its individuals, the benefit of reduction in penalty by 90% (per cent) in terms of Regulation 4(a) of the Lesser Penalty Regulations.<\/p>\n

Lastly, the Coram directed entities\/persons to deposit their respective penalty amounts within 60 days of the receipt of the present order.[Alleged anti-competitive conduct by various bidders in supply and installation of signages at specified locations of State Bank of India across India, In Re., 2022 SCC OnLine CCI 16<\/b><\/a>, decided on 3-2-2022]<\/p>\n

\n

Advocates before the Commission:<\/strong><\/p>\n

For Diamond Display Solutions Pvt. Ltd. and its individuals:<\/span><\/p>\n

Mr. Rajshekhar Rao, Senior Advocate with Ms. Ameyavikrama Thanvi and Mr. Siddharth H. Raval, Advocates and Mr. R.G. Venkatesh (in-person)<\/p>\n

For AGX Retail Solutions Pvt. Ltd and its individuals:<\/span><\/p>\n

Ms. Shivanghi Sukumar, Advocate, Mr. Arjun Reddy and Mr. Ritanshu Mohan (both in-person)<\/p>\n

For Opal Signs Pvt. Ltd. and its individuals:<\/span><\/p>\n

Mr. Anandh Venkatramani, Advocate and Mr. Ramesh Bharadwaj (in-person)<\/p>\n

For Avery Dennison India Pvt. Ltd. and its individuals:<\/p>\n

Mr. Rudresh Singh, Advocate<\/p>\n

For Amreesh Neon Pvt. Ltd. and its individuals:<\/p>\n

Mr. Anjaneya Mishra, Advocate<\/p>\n

For Macromedia Digital Imaging Pvt. Ltd. and its individuals:<\/span><\/p>\n

Mr. Rajshekhar Rao, Senior Advocate with : Mr. Nithin Chowdary Pavuluri, Advocate and Mr. Naresh Kumar Dasari (in-person)<\/p>\n

For Hith Impex Pvt. Ltd. and its individuals:<\/p>\n

Ms. Rohini M. Amin, Advocate<\/p>\n","protected":false},"excerpt":{"rendered":"

Competition Commission of India (CCI): Noting that in respect of cases concerning cartels that are hidden or secret, there is little or <\/p>\n","protected":false},"author":8808,"featured_media":76441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[30570,26064,27914,5461,47457,2627,10971],"class_list":["post-263346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-anti-competitive-agreement","tag-bidding-process","tag-cartelisation","tag-cci","tag-manipulation","tag-Penalty","tag-sbi"],"yoast_head":"\n7 entities indulged in anti-competitive agreement for supply of signages for branches\/offices\/ATMs of SBI: E-mails exchanged between parties formed basis for manipulation of bidding process | Detailed decision of CCI | SCC 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our interesting picks from the stories reported this week: To operate in State of Maharashtra, Uber and other unlicensed aggregators to apply for license before 16th March 2022: Bom HC The Division Bench of Dipankar Datta, CJ and Vinay Joshi, J., directed UBER and other transport aggregators who\u2026","rel":"","context":"In "High Court Round Up"","block_context":{"text":"High Court Round Up","link":"https:\/\/www.scconline.com\/blog\/post\/category\/columns-for-roundup\/high-court-round-up\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-44-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-44-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-44-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-44-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-44-2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":264941,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/02\/tribunals-and-commissions-roundup-of-march-2022\/","url_meta":{"origin":263346,"position":1},"title":"18 Reports to Read: Dental Negligence, Shareholders right to remove Directors, Logix & Supertech insolvent and more|Tribunals and Commissions Roundup of March 2022","author":"Bhumika Indulia","date":"April 2, 2022","format":false,"excerpt":"18 Reports to Read Competition Commission of India (CCI) Star India providing bouquet of channels at lesser prices resulting significant loss in consumer base of Asianet Digital Network: Star India abusing dominance of its position?\u00a0 The Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members)\u2026","rel":"","context":"In "Legal RoundUp"","block_context":{"text":"Legal RoundUp","link":"https:\/\/www.scconline.com\/blog\/post\/category\/columns-for-roundup\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/Tribunal-Roundup_March.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/Tribunal-Roundup_March.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/Tribunal-Roundup_March.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/Tribunal-Roundup_March.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/Tribunal-Roundup_March.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6669,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/06\/22\/cci-found-thirteen-manufacturers-suppliers-of-cn-bomb-container-guilty-of-cartelization-price-fixing-and-collusive-bidding\/","url_meta":{"origin":263346,"position":2},"title":"Thirteen manufacturers\/ suppliers of \u201cCN bomb container\u201d held guilty of cartelization (price fixing and collusive bidding)","author":"Sucheta","date":"June 22, 2015","format":false,"excerpt":"Competition Commission of India: The Competition Commission of India (CCI) in its suo moto cognizance found thirteen suppliers\/manufacturers (opposite parties) of containers with disc required for 81 mm bomb have engaged in the practices of determination of purchase price of \u201cCN Container\u201d (the Product) and collusive bidding in contravention of\u2026","rel":"","context":"In "Tribunals\/Commissions\/Regulatory Bodies"","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6672,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/06\/25\/heavy-fine-imposed-upon-glaxosmithkline-pharmaceuticals-ltd-and-sanofi-pasteur-india-for-anti-competitive-practice\/","url_meta":{"origin":263346,"position":3},"title":"Heavy fine imposed upon GlaxoSmithKline Pharmaceuticals Ltd. and Sanofi Pasteur India for anti-competitive practice","author":"Sucheta","date":"June 25, 2015","format":false,"excerpt":"Competition Commission of India (CCI): CCI imposed a total fine of about Rs 64 crore on GlaxoSmithKline Pharmaceuticals Ltd. and Sanofi Pasteur India for collusive bidding in supply of a meningitis vaccine to the government for Hajj pilgrims and subsequently plotting to charge higher prices in the government tender for\u2026","rel":"","context":"In "Tribunals\/Commissions\/Regulatory Bodies"","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":28881,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/12\/07\/penalty-of-rs-7463-10-lakh-imposed-on-alkem-laboratories-for-anti-competitive-practices\/","url_meta":{"origin":263346,"position":4},"title":"Penalty of Rs. 7463.10 Lakh Imposed on Alkem Laboratories for Anti-Competitive Practices","author":"Sucheta","date":"December 7, 2015","format":false,"excerpt":"Competition Commission of India (CCI): Pharma enterprise Alkem Laboratories Ltd is found guilty for causing potential consumer harm due to its anti-competitive conducts and for lessening of competition in healthcare sector in Kerala. The competition regulator in its detailed order found that Alkem was following anti-competitive dektats of All Kerala\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":[]},{"id":181254,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/01\/14\/cci-issues-order-respect-tenders-floated-mahagenco-procuring-coal-liasoning-services-bid-rigging-forming-hard-core-cartel\/","url_meta":{"origin":263346,"position":5},"title":"CCI issues order in respect of tenders floated by MAHAGENCO for procuring coal liasoning services;\u00a0for bid rigging and forming hard core cartel","author":"Saba","date":"January 14, 2018","format":false,"excerpt":"Competition Commission of India: The Competition Commission of India (CCI) has found Nair Coal Services Pvt. Ltd., Karam Chand Thapar & Bros (CS) Ltd. and Naresh Kumar & Co. Pvt. Ltd. \u00a0to be in contravention of the provisions of Section 3(1) read with Section 3(3)(c) and Section 3(3)(d) of the\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\/263346","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\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=263346"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/263346\/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=263346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=263346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=263346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}