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The Competition Commission of India (CCI) has said that Nair Coal Services, Karam Chand Thapar & Bros and Naresh Kumar & Co colluded to eliminate competition for tenders floated by Maharashtra State Power Generation Company for coal-liasoning work. Taking a serious view of the collusive conduct of the coal-liasoning agents, the commission has imposed penalty on the agents.
A penalty of twice the total profits earned from coal-liasoning services to all power generators from 2010-2011 to 2012-2013 was imposed on the parties – CCI has imposed a penalty of ₹7.16 crore on NCSL (Nair Coal Services Private Limited), ₹111.60 crore on KCT (Karam Chand Thapar & Bros Limited) and ₹16.92 crore on NKC (Naresh Kumar & Company Private Limited) for the anti-competitive conduct. A cease and desist order was also issued against these companies.
CCI opined that the case fell in the category of ‘hardcore cartels’, as the parties reached an agreement to submit tenders and to divide the markets which warranted the matter to be dealt with utmost severity.
CCI ruled that companies acted in contravention of the provisions of Section 3(1) read with Section 3(3)(c) and Section 3(3)(d) of the Competition Act, 2002.
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