CCI dismisses case against Co-operative Societies (Punjab)

Fair trade regulator CCI has dismissed a complaint alleging anti-competitive practices against Co-operative Societies (Punjab) for supply of certain agricultural products, saying that the matter does not fall under its purview.
The complaint filed by the Malwa Industrial & Marketing Ferti-chem Co-operative Society Ltd was made against the Registrar, Co-operative Societies (Punjab) and its officials as well as the Punjab State Co-operative Supply & Marketing Federation (MARKFED).
According to the Competition Commission of India, the matter does not fall under its purview as the functions of the Registrar were regulatory and statutory in nature.
The complainant had alleged that the Registrar instead of allowing Malwa to sell its products to the co-operative societies in Punjab had issued a policy for distribution of fertiliser, micro nutrients, among others, creating monopoly in favour of MARKFED.

"In the present case, the Registrar while discharging its regulatory and statutory mandate cannot be said to fall within the purview of the term enterprise as defined in...The (Competition) Act," CCI said in an order dated November 18.
Accordingly, the Commission said that "no case of contravention of the provisions of...The (Competition) Act is made out against the opposite parties".
Under the competition norms, for an entity to fall within the definition of the term 'enterprise' it must be engaged in any economic and commercial activities specified therein. As a result regulatory functions are not per se amenable to the jurisdiction of the Commission.

The complaint had alleged the Registrar had not been allowing the Primary Co-operative Agricultural Service Societies, Multipurpose Co-operative Agriculture Societies and the Co-operative Marketing-cum-Processing Societies to make purchases from Malwa.