Competition tribunal dismisses JSPL's appeal against CCI order

NEW DELHI: The Competition Appellate Tribunal has dismissed an appeal by Jindal Steel and Power against fair trade regulator CCI's clean chit to rails supply pact between Indian Railways and SAIL.

A three-member bench of the tribunal held that the appeal filed by JSPL was not maintainable.

"We are of the clear opinion that both the appeals must be dismissed as not tenable. We hold accordingly and dispose of both the appeals," said the COMPAT bench headed by its Chairman Justice V S Sirpurkar.

Prints India has also complained against an agreement of leading journal printers.

Jindal Steel and Power Ltd (JSPL) had complained to the Competition Commission of India (CCI) saying that the exclusive supply agreement between the Indian Railways and SAIL is anti-competitive.

The Director General of Investigation had recommended action, but CCI ruled out existence of any anti-competitive practice and closed JSPL's complaint on December 20, 2011 saying there was nothing wrong in the agreement between the Railways and SAIL.

"The Commission finds that the MOU between SAIL and Indian Railways is not anti-competitive and does not lead to foreclose of the market. The Commission closes the case," CCI had said.

CCI in its report had said there was nothing wrong in having a long-term relationship and that major automobile firms also source their intermediate inputs with long-term relationship.

"The MoU has not hindered competition in the rail market. The allegation that SAIL as a dominant player has strategised to create entry barriers by locking IR into a long term agreement is not borne out by the available evidences," CCI had said in its order.