The compliant had been filed by Hindustan Zinc Limited who had accused CIL of abusing its dominant position by imposing unilateral and unfair conditions in the fuel supply agreementsNew Delhi: The Competition Commission of India (CCI) has shot down a complaint against Coal India Limited (CIL) and its subsidiary, Western Coalfields, alleging unfair business practices regarding fuel supply agreements.
The complaint had been filed by Hindustan Zinc Limited who had accused CIL of abusing its dominant position by imposing unilateral and unfair conditions in the fuel supply agreements (FSA) and acting in a discriminatory manner while supplying coal.
In a nine-page order dated December 3, the CCI said that it had disposed off similar cases against CIL in the past where the nature of the allegations was similar. Besides, the issues highlighted by the complainant regarding “sampling procedure, grade slippage/mis-declaration of grades” have been substantially addressed by previously issuing appropriate directions to Coal India and its subsidiaries, CCI noted.
The previous order
The competition regulator had asked Coal India in March 2017 to modify FSAs and had directed it to bring in suitable modifications in the agreement to provide for a fair and equitable sampling and testing procedure.
The CCI said in its order that it “need not order investigations based on successive information which may be brought before it by different parties agitating the same issues.”
Hence, the case stands disposed of in terms of directions issued by the Commission in the previous cases decided against Coal India and its subsidiaries, CCI said.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.