Super Medicos Vs Northern Railways Central Hospital (Competition Commission of India)
The Competition Commission of India considered information filed by two local chemist vendors against a government-run railway hospital, alleging contravention of Sections 3 and 4 of the Competition Act, 2002. The Informants were empanelled vendors supplying medicines and consumables under an earlier tender and had continued supplies under extensions while a new tender was being finalised. They challenged the terms of a re-floated tender for local purchase supply, particularly the condition requiring an average annual turnover of ₹19 crore over the last three financial years, which they alleged was exorbitantly increased from ₹7.5 crore in an earlier tender and was restrictive, discriminatory, and contrary to General Financial Rules, 2017 and the Public Procurement Policy (Make in India) Order, 2017.
The Informants also alleged repeated cancellation and re-floating of tenders without reasons, disclosure of bidder prices during re-tendering, and imposition of conditions intended to restrict participation and favour a single vendor. Further allegations included removal of certain categories of medicines and distance criteria under a new Railway Board policy, leading to alleged loss to the public exchequer and unfair negotiation with a particular bidder despite the Informants claiming to be L1 bidders. They sought revision of the turnover criteria, finalisation of the tender without re-tendering, and interim relief to maintain status quo.
