The CCI imposed a penalty of Rs2.09 crore on Western Electric, Rs62.37 lakh on Pyramid Electronics and Rs20.01 lakh on R. Kanwar Electricals
New Delhi: The Competition Commission of India (CCI) on Thursday found three electrical firms guilty of anti-competitive agreements for bid rigging of tenders floated by Indian Railways.
The Commission imposed penalties on the three firms—Western Electric and Trading Company, Pyramid Electronics and R. Kanwar Electricals.
The CCI imposed a penalty of Rs2.09 crore on Western Electric and Trading Company, Rs62.37 lakh on Pyramid Electronics and Rs20.01 lakh on R. Kanwar Electricals.
The CCI issued the final order taking suo moto cognizance based on information received from an official of the Central Bureau of Investigation (CBI).
According to the provisions of the Competition Act 2002, penalties on Pyramid Electronics and Western Electric and Trading Company were calculated at the value of their profit for 2012-13 and on R. Kanwar Electricals at the rate of 3% of its turnover for the same period.
The CCI, after considering the totality of facts and circumstances of the case, also imposed penalties on persons-in charge of the three firms at the rate of 10% of the average of their income for the last three preceding financial years.
The Commission held that the three firms shared the market by way of allocation of tenders of Indian Railways for Brushless DC (BLDC) fans amongst themselves.
The CCI said the three firms “entered into an arrangement to rig the bid pertaining to tenders of BLDC fans in Northern Railway, North East Railway, South Central Railway and Bharat Earth Movers Limited" and held them responsible for the infringement of the provisions of the Competition Act and liable for penalty.
During the investigation, the Commission found that the three companies had exchanged within themselves the rates to be quoted by them in the upcoming tenders. The Commission also found exchange of numerous calls amongst the key persons of these firms before and during the period of the tenders. It also noted that Pyramid Electronics approached the CCI admitting the existence of such actions which confirmed and revealed the existence of the cartel.
The Commission granted 75% reduction in the penalty to Pyramid Electronics taking into consideration the co-operation extended by the firm.
Accordingly, the penalty imposed on Pyramid Electronics was reduced to Rs15.59 lakh and penalty imposed on person-in-charge was also reduced in the same ratio.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!