CCI Clears Adani, Other Groups of Cartelisation Charges

CCI Clears Adani, Other Groups of Cartelisation Charges

Introduction

The Competition Commission of India (CCI) has dismissed a complaint alleging cartelisation and bid-rigging by major corporate groups during coal block auctions conducted in 2015 and 2023. The Commission held that there was no prima facie case of contravention of Section 3(3) of the Competition Act, 2002.

Factual Background

The complaint was filed by one Deepika, in Deepika Vs Calcutta Electricity Supply Corporation and others, alleging that group entities of RP-Sanjiv Goenka and Adani colluded during the auction of the Sarisatolli coal mine in 2015, and that other companies including Hindalco, UltraTech, Vedanta, and Jindal Power engaged in similar conduct in other coal mine auctions. The informant also alleged that Adani Group entities and Cavill Mining suppressed bids to win coal blocks in the 2023 auctions.

Decision

The bench of Ms. Ravneet Kaur (Chairperson), Mr. Anil Agrawal (Member), Ms. Sweta Kakkad (Member), and Mr. Deepak Anurag (Member) held that there was no prima facie case of cartelisation or bid-rigging, based on the comments received from the Ministry of Coal (MoC) and the presence of independent bidders in the auctions. The Commission noted that the procurer had no grievance or apprehension of cartelisation or bid-rigging, and that the participation of independent entities such as Gujarat Mineral Development Corporation (GMDC) negated any inference of collusion.

Reasoning & Analysis

The CCI's decision was based on the lack of specific allegations or evidence of cartelisation, as well as the presence of unrelated bidders in the auctions. The Commission noted that the MoC had not expressed any concerns regarding the auctions. The CCI rejected the informant's application seeking condonation of delay in filing the complaint, holding that the CAG report had been publicly available since 2016 and that the explanation about bidder names being disclosed through RTI in 2023 did not constitute sufficient cause.

Implications

The decision provides clarity on the CCI's approach to allegations of cartelisation and bid-rigging in coal block auctions. It highlights the importance of presenting specific evidence and allegations when making claims of anti-competitive conduct.

Outcome

The CCI's dismissal of the complaint brings closure to the allegations of cartelisation and bid-rigging in coal block auctions. The decision is expected to provide guidance to businesses participating in such auctions and to informants filing complaints with the CCI.