Thursday, 8 August 2013

Competition panel penalises 11 shoe-makers

The Competition Commission of India has penalised 11 shoe manufacturers for indulging in collusive and restrictive bidding for a tender floated by the Ministry of Commerce for procurement of ankle boot sole.

Imposing a penalty of Rs 6.18 crore on the 11 firms, CCI asked the companies to ‘cease and desist’ from anti-competitive practices in future.

The Directorate General of Supplies and Disposals under the Commerce Ministry had approached CCI after finding a similarity in the bids.

It was found that the difference in quoted prices of different bidders was very narrow. Following an investigation by the Director General, which indicated collusive bidding, penalty rate was 5 per cent of the average turnover of the company. The estimates of the tender requirement indicated in the tender enquiry was valued at Rs 10.45 crore and consisted of 45 items of different sizes and colours.

“The Commission is of the view that the opposite party bidders by quoting identical / near identical rates had indirectly determined prices/rates in the rates contract finalised by the DG S&G and indulged in bid rigging/ collusive bidding in contravening provisions. Further, the opposite parties by imposing quantity restrictions for the RC period as well as per controlled/ limited the supply of the product in question and share the market controlled/ limited supply of the product in question and shared the market of the product among themselves under an agreement/arrangement,” CCI said.

The companies penalised include A R Polymers, Puja Enterprises, M B Rubber, Tirupati Footwear, H B Rubber, Rajkumar Dyeing and Printing Works, Preet Footwears, S S Rubbers, R S industries, Shiva Rubber Industries and Derpa Industrial Polymers.
http://www.thehindubusinessline.com/industry-and-economy/competition-panel-penalises-11-shoemakers/article4999875.ece

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