Companies

GAIL tender: CCI imposes penalty on two firms for bid rigging

Our Bureau New Delhi | Updated on October 11, 2021

The Competition Commission of India (CCI) has imposed a penalty on two firms — PMP Infratech Pvt. Ltd. and Rati Engineering — for indulging in concerted practices leading to bid rigging of tender floated by GAIL in 2017–18.

The tender was floated by GAIL for the restoration of well site located in Ahmedabad and Anand areas of Gujarat.

Based on investigation and electronic/documentary evidence collected by the Director General (DG) as well as other evidence available on record, CCI found that the two firms were in regular touch with each other regarding the tender floated by GAIL and even after the submission of their bids, an official release said.

The bids of the two firms were submitted from the same IP address from the premises of PMP Infratech Pvt. Ltd’s office at Ahmedabad, with a one-day gap. CCI found such conduct to have contravened the provisions of Section 3(3)(d) read with Section 3(1) of the Competition Act, 2002 which prohibit anti-competitive agreements, including bid rigging.

The CCI imposed a monetary penalty of ₹25 lakh on PMP Infratech Pvt. Ltd, ₹2.5 lakh on Rati Engineering and ₹1 lakh and ₹50,000 on the respective individuals who managed and controlled the firms, besides passing a cease-and-desist order, the release added.

Published on October 11, 2021

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