CCI slaps penalties on 3 entities for bid rigging activities

New Delhi: Competition Commission has slapped penalties on three entities and certain individuals for rigging bids for a tender floated by Pune Zilla Parishad for procuring sewing machines.

The regulator found that there was an agreement between three suppliers to rig the bids in respect of a tender floated by Pune Zilla Parishad for procurement of Picofall-cum-Sewing Machine.

Quoting of bid prices which were very close to each other with a difference of just a few rupees by the bidders for the impugned tender was not a mere coincidence, but a result of consensus/ understanding among the bidders, Competition Commission of India (CCI) said in a release on Thursday.

“A holistic assessment of bid prices of the bidders coupled with other plus factors viz single IP address, coordination in other tenders, call data record, mobile location, etc. is conclusive of an agreement amongst the bidders to fix price, resulting in rigging the bids in the impugned tender of Pune Zilla Parishad,” it added.

The watchdog has imposed a penalty of Rs 10 lakh each on the suppliers — Klassy Computers, Nayan Agencies and Jawahar Brothers — for the anti-competitive conduct.

“A penalty of Rs 10,000 each was imposed upon each of the individuals of Jawahar Brothers… The other two bidders are sole proprietorship concerns and thus, no separate penalty is being imposed upon their respective proprietors,” the release said.

Further, these suppliers have been directed to cease and desist from anti-competitive practices.