Sep 14, 2018

CCI Dismisses Information Alleging Abuse of Dominance Against Tamil Nadu Civil Supplies Corporation

On July 4, 2018, CCI disposed off the information filed by Maheshwari Agro Products (‘MAP’) against Tamil Nadu Civil Supplies Corporation (‘TNCSC’), alleging violation of the provisions of Section 4 of the Competition Act[1].MAP is a supplier of pulses and other ancillary things, and had been successfully participating in the tenders floated by TNCSC, a public sector undertaking, since 2012. In 2013, TNCSC had introduced stringent conditions in its tender process, including the purchase of stocks from the tenderers at a rate higher than the open market price. Furthermore, in its tender notification dated May 15, 2017, one of the conditions was that the bidder should have executed at least one contract valued at not less than ₹ 160 million, along with an annual average turnover of ₹ 320 million in the previous three financial years. It was alleged that imposition of such conditions that helped OP to favour certain bidders while disqualifying the others, is an act of abuse of dominant position.While delineating the relevant market, CCI noted that the pulses could be supplied from anywhere in India. Therefore the relevant market was delineated as the ‘market for procurement of tur dal/Canadian yellow lentil in India’. Within this relevant market, CCI observed that there are many state-run agencies and corporations that operate in this market, exerting considerable competitive constraint on TNCSC. It was further observed that even after the tender conditions were altered, there remained ten bidders which ensured that the tender process was competitive and not arbitrary. Therefore, CCI concluded that no prima facie contravention of any provision of the Competition Act was made out, and dismissed the information under Section 26(2) of the Competition Act.[1] Case 02 of 2018.

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