CCI orders probe against IREL for abuse of dominant position
Competition Commission has ordered a detailed probe against state-owned IREL (India) Ltd, which is into mining and production of minerals, for alleged abuse of dominant position.
It was alleged that IREL abused its dominant position by indulging in prohibitive increase in the sillimanite prices by following discriminatory pricing against the interests of the micro, small and medium enterprises in the domestic market.
The informant also alleged that the company favoured multi-nationals and/or foreign parties and fixed the supply of sillimanite as per its whims and fancies and forcing its customer to accept arbitrary quantity.
Competition Commission of India (CCI) said that based on facts and circumstances of the present case, it is prima facie noted that OP is the only entity engaged in the mining and supply of beach sand mineral in India, which allows it to operate independently of the market forces.
“The Commission has also perused the allegation in the information pertaining to unfair and discriminatory pricing, for which no response has been forthcoming from the OP. The Commission at this stage, thus, has to infer that prima facie there is substance in such allegations which points towards violation of Section 4 (2) of the Act,” it said in an order dated January 3.
IREL (India) is the Opposite Party (OP) and Section 4 of the Competition Act pertains to abuse of dominant position.
The watchdog has ordered a probe by its investigation arm Director General (DG) against the company.
Nothing stated in the order shall tantamount to a final expression of opinion on the merits of the case and the DG shall conduct the investigation without being swayed in any manner, the regulator said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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