CCI rejects complaint against Maha Industrial Development Corp

The Competition Commission of India (CCI) has dismissed a complaint alleging unfair business practices by the Maharashtra Industrial Development Corporation (MIDC) with regard to award of tenders.

The complaint filed by Maharashtra Electrical Engineers Association, a registered body of electrical contractors under the Labour Association Act, was also against Royal Power Trunkey Implements, which is engaged in the business of erecting and commissioning of transformers, among others.

The complainant had alleged that the MIDC was favouring Royal Power Trunkey Implements in award of tenders to the exclusion of its members.

Noting that the allegations at best indicate non- observance of the tender conditions by the MIDC in award of its contracts in favour of Royal Power Trunkey Implements, the regulator in an order said that no case of contravention of the provisions of the Competition Act is made out against the Opposite Parties (MIDC and Royal Power Trunkey Implements).

The complainant has not placed any agreement which can be examined under Section 3 of the Competition Act, said the regulator, adding that "no term of any tender has been pointed out which can be examined under Section 4 of the Act".

While Section 3 pertains to anti-competitive agreements, Section 4 relates to abuse of dominant market position.

"The information has been filed making generalised allegations against MIDC in respect of award of contracts in favour of OP-2 (Royal Power Trunkey Implements)," the CCI order said.

"Without commenting upon the merits of such allegations, the Commission is of opinion that the entire thrust of the information does not reveal any competition issue whatsoever," it added.

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