Coal news and updates

CCI to look into cartelisation of cancelled coal blocks

April 22: The Competition Commission of India (CCI) has taken up suo moto for looking into the possibility of cartelisation in the bidding for allocation of three coal blocks.

“The Government of India has not directed anything regarding this affair. We have taken up this suo moto as we have come to know from newspaper reports. We are looking whether there is cartelisation aspect of the bidding," CCI member Uttam Chand Nahta said, speaking at an interactive session at the MCC Chamber of Commerce and Industry.

The matter, however, is at a preliminary stage and it would take some time, he said.

The coal ministry did not accept bids for three blocks of Jindal Steel and Power amid speculation of cartelisation. This decision was legally challenged and the Delhi High Court in an interim order reportedly found no evidence of cartelisation.

Explaining the long procedure, Nahta said, "We have our own investigation team. They can take up cases based on various sources such as news reports, information from government departments, the CAG (Comptroller and Auditor General of India), vigilance commissioners as well as other sources, and if prima facie justification arises for detailed investigation, CCI then tells the Director General to do it. Being heavily burdened, the Director General too take some time to file a report and then hearing starts before the Commission after informing all concerned parties. So it’s a bit long procedure.”

He said the CCI has so far received 25 complaints in April this year. In 2014-15, it registered 107 complaints of fair trade violations. In 2013-14, 2012-13 and 2011-12, the numbers were 115, 94 and 93 respectively. 

Over the past five years, it had imposed a fine of Rs 12,474 crore with state-owned Coal India Ltd. accounting for Rs 1,773 crore alone — the highest single case collection. It has also collected Rs 2,554 crore from 14 car manufacturers. But, as he admitted, actual remittances obtained by CCI is less than 10% of the total penalty imposed so far.