CCI rejects complaint against Haryana govt
New Delhi: Fair trade regulator Competition Commission of India has rejected a complaint against Haryana government, wherein a state agency was accused of abusing its "monopolistic power" in purchase of diesel gensets for various departments.
In its order after hearing a complaint from All India Genset Manufacturer Association, CCI said that there is lack of information in respect of dominance by the Director of Supplies and Disposals and therefore "the question of abuse of dominance therefore cannot be considered."
The complainant had alleged that the Director Supplies and Disposals, being the only authorised department of State of Haryana to purchase the diesel genset, was in a dominant position having "monopolistic power" to buy the product for all other departments.
The association also said that the entity was a government department, but was satisfying the definition "of the enterprise" as given in the Competition Act.
CCI said that the complaint is about the government procurement being done through Director Supplies and Disposals and not in respect of the entire genset market.
CCI noted that Director Supplies and Disposals is only one of the enterprises who purchase gensets and there would be of hundreds of other enterprises who will be buying gensets.
"The government purchase and the private purchase are substitutable and interchangeable and the two cannot be considered two separate markets," it noted.