The Competition Commission of India (CCI) has issued “cease and desist” orders against six firms that were found guilty of bid rigging and cartelization in the tenders floated by Food Corporation of India (FCI).

However, CCI refrained from imposing any monetary penalty considering that four out of six firms had filed lesser penalty applications and admitted their conduct, confessed their modus operandi during investigation thereby fully cooperated with CCI.

Also read: Eastern Railway tender: CCI issues cease and desist order against 8 firms

Moreover, the firms were also MSMEs with limited staff/ turnover and the prevailing economic situation arising due to the outbreak of Covid-19, stress wrought upon the MSME sector in the wake of the said pandemic led to CCI not going for tougher penalisation.

CCI found these firms to have indulged in cartelization in the supply of Low Density Poly Ethylene covers (LDPE) to Food Corporation of India (FCI) by means of directly or indirectly determining prices, allocating tenders, coordinating bid prices and manipulating the bidding process. The case was initiated on the basis of a reference filed on behalf of FCI, an official release said.

The competition watchdog had on October 29 issued a final order against the six firms for contravention of Competition law, which among other things proscribe anti-competitive agreements.

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