Oct 31, 2021CCI Dismisses Bid Rigging Allegations for Certain Tenders issued for Water and Waste Management Facilities in Rajasthan
Together We Fight Society (‘Informant’) filed an Information under Section 19(1)(a) of the Act alleging a contravention of Sections 3(3) of the Act by SR Paryavaran Engineers Pvt. Limited (‘SRP’), Doshion Veolia Water Solutions Pvt. Ltd. (‘DVWSPL’), Water Life India Pvt. Ltd. (‘WLIPL’), LVJ Projects Pvt. Ltd. (‘LVJPPL’) and GA Infra Private Limited (‘GIPL’).[1] SRPEPL, DVWSPL, WLIPL, LVJPPL and GIPL are collectively referred to as OPs.
The Informant is a non-governmental organization and a not-for-profit established for charitable purposes. The OPs execute small, medium and large projects for water and water waste management facilities in the industrial, municipal and infrastructure segments. Placing reliance upon a report prepared by the Comptroller and Auditor General of India dated June 4, 2016 (‘Report’), the Informant alleged cartelization / bid rigging by the OPs in certain tenders for the provision, installation and commissioning of reverse osmosis plants in certain districts in Rajasthan. This alleged cartelization pertained to two tenders that were issued by the Government of Rajasthan in January 2013 (‘Tender No. 1’) and March 2013 (‘Tender No. 2’). Tender No.1 was allotted to WLIPL and LVJPPL whereas in Tender No. 2 all the OPs were allotted tenders for different districts in Rajasthan. The Informant alleged that the rates quoted by each of the OPs for Tender No. 2 were significantly higher than the overall rates quoted for Tender No. 1. While the Report did broadly set out that the possible reasons for higher bid price of Tender No. 2 (compared to the prices quoted for Tender No. 1), the Report also mentioned that the similar prices and the similar reasons for increase in prices indicated cartelization. The observations in the Report along with the allegedly high bid price collectively submitted by the OPs was alleged by the Informant as bid rigging in violation of Section 3(3)(d) of the Act.
CCI however noted that despite detailed allegations, there was no cogent evidence placed on record by the Informant that would in any manner indicate the existence of any collusion between the OPs. Therefore, in the absence of any evidence, CCI did not find any basis for initiate an investigation against the OPs and accordingly decided to close the matter under Section 26(2) of the Act.
[1] Together We Fight Society v. SR Parayavaran Engineers Pvt. Ltd and Ors., Case No. 20 of 2021, Order dated September 16, 2021.