On February 21, 2020, CCI dismissed a complaint by CP Cell, Directorate General Ordinance Service, Master General of Ordnance Service (‘CP Cell’) against 4 suppliers of shirts namely M/s NCFD (‘NCFD’), M/s Kaushalya Industries (‘KI’), M/s AVR Enterprises (‘AVRE’) and M/s PN Gupta & Sons (‘PNGS’) alleging bid-rigging[1].

CP Cell alleged collusion by the four opposite parties while submitting bids in relation to the tender floated by it for procurement of 1,38,251 Shirt Man’s Cellular Cotton 1973 Pattern (Modified) Khaki. To substantiate its allegations, CP Cell submitted that NCFD & KI (which were both L-2 in the tender) and AVRE & PNGS (which were both L-6 in the tender) quoted similar rates in response to the tender. CP Cell further alleged that the IP addresses of the opposite parties were similar.

CCI noted that CP Cell did not submit any documentary evidence pertaining to the alleged similarity of IP addresses of the opposite parties. While similar prices were quoted by the two L-2 tenderers and L-6 tenderers, CCI opined that in the absence of other evidence, price parallelism cannot be sufficient to direct an investigation. Accordingly, CCI concluded that no prima facie case was made out and closed the matter under Section 26(2) of the Act.

[1] Case No.2 of 2019 (order delivered on February 21, 2020).