COMPETITION COMMISSION OF INDIA IMPOSES PENALTY ON 11 SHOE COMPANIES

The Competition Commission of India has imposed a penalty of Rs. 625.43 lakhs on 11 Shoe Companies in a case filed by Director General - Supplies & Disposal, New Delhi relating to a tender for supply of Poleyster Blended Ankle Boots.

CHARGES:

The Investigation conducted by CCI revealed that 

1. The bidder-suppliers by quoting identical/near identical rates had, indirectly determined prices/rates in the Rate Contracts finalized by DG S&D
2. Indulged in bid rigging/collusive bidding in contravention of the provisions of section 3(1) read with section 3(3)(a) and 3(3)(d) of the Act.
3. The parties had also controlled/limited the supply of the product in question and shared the market of the product amongst themselves under an agreement /arrangement in contravention of the provisions of section 3(1) read with section 3(3)(a) and section 3(3)(d) of the Act.

PENALTY:

CCI has worked out a Penalty @ 5% on the Average of the Gross Turnover for financial years 2008-09, 2009-10, 2010-11. CCI has directed these companies to deposit the amount within 60 days from the receipt of order.

The Order of the Commission was passed on 06/08/2013 (Reference Case No. 01of 2012).