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Competition Commission penalizes 2 firms for rigging GAIL’s tender



Competition Commission of India penalizes two firms for bid rigging

The Competition Commission of India (CCI) has fined two entities for rigging the bidding of a tender floated by Maharatna company Gas Authority of India Limited (GAIL).

GAIL had floated tenders for restoration of a well site at Ahmedabad and Anand in Gujarat in the financial year 2017-18.

According to a statement issued by the CCI, two companies named PMP Infratech and Rati Engineering were fined for rigging the bids.

The CCI imposed a fine of Rs 25 lakh on PMP Infratech, Rs 2.5 lakh on Rati Engineering and Rs 1 lakh and Rs 50,000 on their representatives controlling the companies. This is in addition to passing ceasefire orders.

It was observed that both the companies were in constant touch with each other regarding the tender of GAIL and even after both submitted their bids, the competition watchdog said.

Further the bids submitted by both the firms were from the same IP address and within a span of one day of each other, the CCI further said.

In addition, bids were submitted by both the firms from the premises of PMP Infratech in Ahmedabad, the CCI statement said.

Such conduct violates the provisions of Section 3(3)(d) read with Section 3(1) of the Competition Act, 2002, which prohibits anti-competitive agreements including bid rigging.


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