The Competition Commission of India (CCI) has levied a penalty of Rs 252.44 crore on United Phosphorus for discrepancies in bidding in a tender of Food Corporation of India (FCI) and collective boycott of another tender of FCI.
United Phosphorus has said in a filing to the Bombay Stock Exchange (BSE) that it was made aware of these allegations from an order on CCI's website dated April 23, 2012.
CCI has alleged that United Phosphorus has violated sections 3(3)(b) and 3(3)(d) of the Competition Act, 2002.
A penalty has been levied on the company and two other manufacturers of aluminium phosphide tablets in respect of alleged cartelisation and collusive bidding in a tender of FCI for 600 million tonne of these tablets in 2009 and collective boycott of another tender of FCI in 2011. The total value of the 2009 tender was approximately Rs 24 crore and the company's share on this was approximately Rs 8 crore.
United Phosphorus has said in its filing with the BSE that it believes there is no violation on its part as alleged by teh CCI and it will in due course, take steps to file an appeal against the order before the Competition Appellate Tribunal.
