Fair trade regulator CCI has dismissed a complaint alleging abuse of dominance by Tamil Nadu Civil Supplies Corporation with regard to criteria for the bidders in the tender process for procurement of tur dal by the public sector firm.
The complaint was filed by one Maharashtra-based Maheswari Agro Products, which is engaged in the business of supplying pulses, among others.
According to a CCI order dated July 4, the complainant was primarily aggrieved by the conduct of Tamil Nadu Civil Supplies Corporation in modifying the pre-qualification criteria for bidders in the tender process for procurement of tur dal.
The public sector company had allegedly changed the eligibility requirement in the tender process arbitrarily, which excluded many stakeholders from participating in it.
For the case, the Competition Commission of India (CCI) considered the 'market for procurement of tur dal/ Canadian yellow lentil in India' as the relevant one.
Noting that no "prima facie" case of contravention of the provisions of Section 4 of the Competition Act is made out against Tamil Nadu Civil Supplies Corporation, the fair trade regulator dismissed the matter.
More From This Section
Section 4 pertains to abuse of dominant market position.
"... the Commission observes that even after altering the pre-tender qualification, ten suppliers submitted their bids for supply of tur dal/ Canadian yellow lentil," the CCI said.
Thus, the allegation that the altered tender conditions have reduced the competition resulting in higher rates of supply is not substantiated, it added.
In its order, the CCI also observed that Tamil Nadu Civil Supplies Corporation has the obligation to frame eligibility conditions for the tender floated by it in a manner, which would ensure that the supplier participating in the tender has the capacity and the resource to successfully execute the work.