On June 09, 2022, the CCI initiated proceedings for alleged cartelisation in the supply of protective tubes to the Indian Railways by Polyset Plastics Private Ltd. (‘OP-1’), M/s Anju Techno Industries (‘OP-2’), M/s Power Mould (‘OP-3’), Jai Polypan Private Ltd. (‘OP-4’), M/s Rama Engineering Works (‘OP-5’), M/s Polymer Products of India (‘OP-6’), and M/s Hari Narayan Bihani (‘OP-7’) (collectively referred to as ‘OPs’). The CCI became aware of such a collusion through a leniency application filed by the OP-4 disclosing the existence of bid-rigging cartel in relation to the tenders floated by the Indian Railways (‘Tenders’) for the procurement of polyacetal protective tubes. ^[1]

The CCI noted that there was coordination amongst the companies submitting Tenders as they quoted mutually agreed prices and allocated Tenders amongst themselves.

Based on the evidence collected by the DG, the CCI found that (i) the OPs communicated amongst themselves through emails stating prices to be quoted in the Tenders; (ii) the OPs used a common internet protocol address to submit bids; (iii) OP-1, OP-2, OP-3 were sister concerns with common partners/directors; (iv) the OPs coordinated and controlled supply of the products in the market; and (v) the OPs were involved in market sharing in terms of percentage by allocating tenders amongst themselves.

Moreover the CCI observed that the OPs were unable to show any positive effects emanating from their cartel. The CCI concluded that the OPs violated Sections 3(3)(a), 3(3)(b), 3(3)(c), and 3(3)(d) read with 3(1) of the Act. Accordingly, the CCI imposed a penalty at the rate of 5% of the average turnover generated from the sale of protective tubes on the OPs. Additionally, the individuals of the OPs that were involved in the anti-competitive conduct were also penalised. However, pursuant to its leniency application, OP-4 and its individuals were granted 100% reduction on the penalty.

[1] Suo moto Case No. 06 of 2020.