BackCCI holds Escorts, Faiveley Transport and Stone India guilty of rail cartelization
Diesel Loco Modernization Works had filed a complaint in the matter following which a case was registered
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New Delhi: The Competition Commission of India (CCI) has found 3 companies—Escorts Ltd, Faiveley Transport Rail Technologies India Ltd and Stone India Ltd—guilty of rail cartelization in case filed on the basis of a complaint by Diesel Loco Modernization Works (DLMW), Patiala.
The three companies have been fined ₹ 54.7 crore, ₹ 5.7 crore and ₹ 1.91 crore, respectively.
The CCI has held the three companies guilty of forming a cartel in a railway tender. The tender was floated for procurement of so-called feed valves, which is a component in a train’s braking system.
The order was posted on the CCI website on Thursday.
The CCI investigation found that the companies “acted in concert in rigging the bid by quoting identical bids on the same date". Further, “the collusive action was also found to be strengthened from the past conduct of the parties where they were found to have quoted more or less similar price for the tenders of different zonal railways," the order said.
The period for which the companies were investigated was between September 2009 and September 2011.
The companies could not be immediately reached for comment.
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