CCI penalizes 3 producers of aluminium phosphide tablets

The Competition Commission of India (CCI), by an order dated 23 April, has again reiterated its commitment towards cracking down on cartels. It has imposed a collective penalty of ₹3.17 billion (US$59 million) on United Phosphorus Limited (UPL), Excel Crop Care Limited and Sandhya Organic Chemicals Private Limited for cartelization, indulging in collusive bidding in tenders and also for collectively refraining from bidding in a tender floated by Food Corporation of India (FCI).

Letter of complaint

The CCI took up the case after it received a letter from the chairman cum managing director (CMD) of FCI complaining of difficulties that FCI was facing with respect to purchase of aluminium phosphide tablets. FCI alleged that UPL, Excel and Sandhya had quoted identical rates on tenders floated by FCI for purchase of tablets and after negotiation had also reduced the rates identically. This had resulted in an increase in the cost of acquiring tablets by FCI.

The CCI after considering the letter was of the opinion that there was a prima facie case, and passed an order under section 26(1) of the Competition Act, 2002, directing the director general (DG) to investigate the alleged contraventions of the Competition Act.

Suchitra Chitale, the managing partner of Chitale & Chitale Partners, heads the competition team of the firm, which advises and acts for clients in Indian competition law matters. She has been in practice for more than 24 years. Sayan Chakraborty is an associate at Chitale & Chitale Partners.