Fair trade regulator CCI has rejected a complaint of anti-competitive practices against anti-narcotics agencies, Central Bureau of Narcotics and Narcotics Control Bureau, in connection with policies related to import of opium into the country.
The fair trade watchdog observed that the two agencies are not enterprises or group as defined under the Competition Act, and therefore the provisions relating to abuse of dominant position cannot be applied to the present information against them.
The order follows a complaint filed with CCI by an individual, claiming to be farmer engaged in cultivation of poppy seeds.
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He had accused the two government agencies of abusing their regulatory powers/dominant market position by not implementing policies with respect to import of poppy seeds.
The Central Bureau of Narcotics falls under the Ministry of Finance, while the Narcotics Control Bureau comes under Ministry of Home Affairs.
Dismissing the complaint, the Competition Commission of India (CCI) said in an order dated September 16 that there "does not exist a prima facie case for causing an investigation to be made by the Director General under...The (Competition) Act".
The complainant had accused the two agencies of following anti-competitive practices in implementing the EXIM Policy for registration of import contracts of opium.
It also alleged Central Bureau of Narcotics of "flouting the policy norms and objectives by permitting import of huge quantities of illegally and illicitly produced poppy seeds, into the market, thus harming the domestic cultivators".
Further, the complaint said the agency was ignoring the safeguard norms of NDPS (The Narcotic Drugs and Psychotropic Substances) policy by not following mandatory registration requirements for importers and not verifying if the poppy seeds were legally cultivated in the country of origin.
As per the complaint, Central Bureau of Narcotics solely regulated the import and export of poppy seeds in India and enjoyed statutory monopoly.
However CCI said that the anti-narcotics agencies are only appointed by the Government of India to regulate and control the import of poppy seeds into the country to ensure that illegally cultivated poppy seeds are not smuggled into India.
"As such, owing to the nature of activities of Opposite Parties, they cannot be compared to a commercial organisation and do not qualify to be an enterprise within the meaning of ...The (Competition) Act".