CCI Directs Firms to Halt Bid Rigging in Assam Police Housing Projects

New Delhi: The Competition Commission of India (CCI) has directed M/s Purbanchal Enterprise and other entities to cease and desist from anti-competitive practices in connection with electrification tenders linked to police infrastructure projects in Assam, an official statement said.

The order, issued on April 7 under Section 27 of the Competition Act, 2002, found the parties in violation of provisions relating to anti-competitive agreements, particularly bid rigging.

The case stemmed from a complaint filed on August 10, 2020, by the Office of the Accountant General (Audit), Assam, alleging irregularities in tenders floated by the Assam Police Housing Corporation Limited for internal and external electrification works in police station buildings under a state government scheme.

Based on its findings, the Commission said the firms had engaged in bid rigging through practices such as bid rotation and cover bidding to manipulate the tender process and reduce competition.

“The Commission found the opposite parties to have indulged in bid-rigging by way of bid-rotation and/or cover bidding, with the intent to manipulate the tender process in order to reduce the competitive intensity of the entire bidding process,” the CCI said.

It further added that the conclusion was based on evidence such as identical mistakes in bid submissions, common IP addresses, call detail records and demand drafts bearing consecutive numbers, indicating coordinated conduct among bidders.

Accordingly, the Commission directed the entities and their proprietors to refrain from such practices in future, invoking provisions of Section 27(a) read with Section 3 of the Act.

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