CCI has imposed Rs. 38 crore penalty on 18 Sugar mills and two Associations (Indian Sugar Mills Association and Ethanol Manufacturers Association of India) for bid rigging in joint tender issued by Oil Marketing Companies (OMCs) for supply of ethanol.

The information was filed by India Glycols Ltd. and 5 others.

OMCs had invited quotations from alcohol manufacturers for supply of ethanol through a joint tender in 2013, issued under bid systems i.e. technical and price bid.

It was alleged that the Associations persuaded OMCs to come out with the tender and thereby the same was alleged to be an agreement among players in violation of S. 3 of the Competition Act i.e. likely to cause AAEC in market of supply of ethanol. Also, that the sugar manufacturers had manipulated the bids by quoting similar and identical rates.

CCI noted that there was collusion which eliminated and lessened competition besides manipulation of the bidding process. The same could be evidenced from prices quoted and quantities offered and the platform provided by the associations which influenced the bidding behavior of the parties.

For more: https://www.cci.gov.in/sites/default/files/C.%20Nos.%2021%2C29%2C36%2C47%2C48%20%26%2049%20of%202013.pdf