In a move that could bring relief to the jute industry, COMPAT has set aside allegations of bag price manipulation and rigging levelled against office-bearers of Indian Jute Mills Association and Gunny Trades Association by synthetic and plastic bag users.
"We are happy with the judgement," IJMA chairman Manish Poddar said in reaction to the recent order.
"COMPAT Justice G S Singhvi in his order said there was no express or tacit agreement or understanding between IJMA and GTA for fixing the price of jute bags and the DG and the commission committed grave error by holding that IJMA has acted in contravention of Sec 3(3)(a) and 3(3)(b) read with Sec 3(1) of the Competition Act," the association quoting the appellate order said in a statement.
In 2011, the Indian Sugar Mills Association (ISMA), the National Federation of Co-operative Sugar Factories Ltd (NFCSF) and All India Flat Tape Manufacturers Association (AIFTMA) had alleged before the Competition Commission of India (CCI) that IJMA and GTA had cartelised and violated monopoly sections under Section 3 of the Competition Act of 2002.
The Commission in its order held that impugned acts of IJMA and GTA are in contravention of the provisions of the Competition Act.
Describing the Competition Appellate Tribunal's order as a "landmark judgement", former chairman of IJMA Sanjay Kajaria said it will have a positive impact on the jute industry.
IJMA and individual IJMA committee members expect to get a refund of the amount deposited in the tribunal, the release stated.
