GAIL shares fall on another probe regarding GSA

NEW DELHI: Shares of GAIL declined on Tuesday after the CCI ordered a fresh investigation against state-owned company for alleged abuse of dominant position with regard to supply of natural gas.

Following the development, the stock plunged 1.92 per cent to Rs 377.55 on BSE. The scrip had opened at Rs 370 and touched an intraday high and low of Rs 385 and Rs 370, respectively. It eventually fell 1.81 per cent to close Rs 378.

This is the second time in less than a week the company has come under the lens of the watchdog for alleged unfair business practices.

After finding prima-facie evidence of competition norms violations, the CCI has ordered the probe based on a complaint by Rajasthan-based TMT bars maker Shri Rathi Steel (Dakshin) Ltd.

It was alleged that GAIL abused its dominant position by incorporating unfair terms and conditions in the Gas Sale Agreement (GSA).

For this case, the regulator considered the market for supply and distribution of natural gas to industrial consumers at Alwar in Rajasthan as the relevant one.