GAIL Tender: CCI imposes penalties upon these firms for bid rigging

New Delhi: The Competition Commission of India (CCI) passed a final order against two firms, viz; PMP Infratech Pvt. Ltd. and Rati Engineering, for indulging in concerted practices leading to bid-rigging of the tender floated by GAIL in 2017–18 for the restoration of a well site located in Ahmedabad and Anand areas of Gujarat.

Based on investigation and electronic/documentary evidence collected by the DG as well as other evidence available on record, CCI found that the two firms were in regular touch with each other regarding the tender floated by GAIL and even after the submission of their bids. Further, the bids of two firms were submitted from the same IP address from the premises of PMP Infratech Pvt. Ltd.'s office at Ahmedabad, with a one-day gap.

CCI found such conduct to have contravened the provisions of Section 3(3)(d) read with Section 3(1) of the Competition Act, 2002 which prohibit anti-competitive agreements including bid-rigging.

The CCI imposed a monetary penalty of Rs. 25 lakh on PMP Infratech Pvt. Ltd., Rs. 2.5 lakh on Rati Engineering and Rs 1 lakh and Rs 50 thousand on their respective individuals who managed and controlled the firms, besides passing a cease-and-desist order.

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