On February 21, 2020, CCI dismissed a complaint filed by CP Cell against 3 suppliers of Durries namely M/s HP State Handicraft & Handloom Corporation (‘HP Handicraft’), M/s Standard Gram Udyog Sansthan (‘Standard Gram’) and M/s Integrated Defence Product Pvt. Ltd. (‘Integrated Defence’) alleging cartelization[1].

CP Cell alleged that the three opposite parties facilitated a cartel arrangement to help and support each other to win a tender floated by it for procurement of durries to be issued to certain personnel of the Indian army. It was alleged that after failing to qualify for opening of commercial bids, Standard Gram merged with Integrated Defence. Subsequently, the ultimate winner of the tender i.e., HP Handicraft, subcontracted the manufacturing of the durries to the merged Integrated Defence entity. CP Cell submitted that in order to facilitate the cartel, Standard Gram and Integrated Defence entered into the subcontracting arrangement despite being aware that subcontracting was not allowed as per the rules of the tender.

CCI observed that there is no evidence of collusion among the opposite parties on a prima facie analysis. CCI further observed that the allegations pertain to non-compliance with the tender conditions and therefore, do not raise any competition concerns. Accordingly, CCI dismissed the complaint and closed the matter under Section 26(2) of the Act.

[1] Case No.3 of 2019 (order delivered on February 21, 2020).