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Informist, Wednesday, Jan. 1, 2025

 

 

NEW DELHI – The Competition Commission of India has refused to order any probe against Coal India Ltd. on allegations of abusing its dominant position in the market through a 2022 scheme for the electronic auction of coal. "...the commission is of the view that there is no prima-facie case of contravention of provisions of the (Competition) Act warranting an investigation into the matter," said the antitrust watchdog.

 

The scheme's provision for bidders being required to clear any outstanding payment before bidding in the e-auction appears to be a reasonable and standard requirement which is independent of the refund being processed by Coal India, said the competition watchdog. The sufficiency of the time period between the notification of the e-auction and the e-auction appears to be a purely administrative issue, with no apparent ramifications on competition in the relevant market, the antitrust body added.

 

"Regarding clustering of mines, it appears that clustering has been done to smoothen the bidding and allocation process according to availability of different grades of coal," the competition commission said. "Accordingly, the information is directed to be closed forthwith in terms of Section 26(2) of the Act. Consequently, no case arises for grant for relief(s) as sought under Section 33 of the Act," the commission added.

 

The competition commission was hearing an information filed by Bijay Poddar. The informant alleged that various provisions of the 2022 scheme were one-sided and "unfair, complex and discriminatory". The informant had challenged the provisions requiring the bidders to clear all pending dues before bidding. Taking a fixed advance bid security has a discriminatory effect on different bidders when bid security is forfeited, said the informant. Further, the informant also questioned Coal India, having the right to cancel the sale of coal under e-auction at its sole discretion without assigning any reason thereof. 

 

On Wednesday, shares of Coal India Ltd. ended 0.6% higher at INR 386.40 on the National Stock Exchange.  End  

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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