DIRECTOR GENERAL Vs. ESCORTS LTD

JUDGEMENT

(1.) A complaint dated 17.03.2006 was received by the erstwhile Monopolies and Restrictive Trade Practices Commission (for short 'the Commission'). This complain was made by Shri V.K. Jain, Chief Material Manager (I) of the North -Western Railways, Jaipur, alleging herein that in response to the tender floated by the complainant ('Railway' hereinafter), four respondents herein have quoted identical price of Rs. 22,984.83p., which was higher than the earlier price. On the basis of this, the Commission directed investigation by the DG. The tender in question was for purchasing of Distributor Valve C3W as well as KE design with relay valve, which product was required by Railway all through India. The DG then conducted an investigation and came out with a Preliminary Investigation Report. On that basis, the Commission issued a Notice of Enquiry (NOE) vide order dated 19.03.2007 against the respondents.

(2.) THE respondents appeared in pursuance to the NOE and raised various submissions. The main defence appears to be that all of hem had quoted the base price i.e. the Last Purchase Rate and added the element of various taxes like Excise Duty, Sales Tax etc. to it. According to all the respondents, if the percentage of the taxes are added to this common base price i.e. the last purchase rate which was Rs. 19,000/ -, then the final price would certainly come to Rs. 22,984.83p. in this case. According to the respondents, the tender notice itself required them to quote the basic price and the basic price prevailing at that time was Rs. 19,000/ -.

(3.) THE respondents' further defence is that they have not cartelized, as alleged, nor had they any opportunity or reason to form the cartel. According to them, the base price quoted by them was a sound business decision.