Competition Commission of India ("CCI") directs the
DG to cause an investigation for the allegation of abuse of
dominance against GAIL (India) Limited
An information was filed by one Rico Auto Industries Ltd., Omax
Autos Ltd., and Rico Castings Ltd. ("Informants"),
primarily engaged in the business of auto components manufacturing.
It was alleged that GAIL (India) Ltd. ("GAIL"), had
imposed unfair and discriminatory conditions under the Gas Sale
Agreement ("GSA"), in contravention of the provisions of
Section 4 of the Competition Act, 2002 (Abuse of Dominant
Position).
The CCI inter alia observed that the mysterious silence by the
opposite party in not replying to the Informants for reduced
contracted quantity, not replying to the proposal of the Informants
for amicable settlement of the alleged dispute in spite of there
being a provision of the same within the GSA and not divulging the
reasons for suspension of gas, together appear to be pima facie
unfair. The