Mahesh N R Vs Bangalore Electricity Supply Company (Competition Commission of India)
The information was filed alleging contravention of Section 3 of the Competition Act, 2002, on account of alleged bid rigging and collusive conduct in a public procurement process relating to smart meter installation. The Informant, a consumer of the electricity distribution company, claimed that the tender for procurement of smart meters and selection of an AMI service provider was structured to favour specific bidders. It was alleged that such conduct would result in higher costs being passed on to consumers through monthly charges.
The Informant contended that the procuring entity deviated from the Karnataka Transparency in Public Procurement Act, 1999 (KTPP Act) and standard bidding procedures. It was alleged that eligibility criteria were designed to restrict participation and favour certain entities, including by disallowing reliance on subcontractor credentials in some cases while selectively permitting it in others. Further allegations included arbitrary technical qualification requirements tied to prior execution in specific entities, deletion of the Available Tender Capacity requirement, and manipulation of estimated contract values to lower qualification thresholds.
The Informant also alleged that the procurement process led to foreclosure of competition, denial of market access to other capable suppliers, inflation of prices compared to other states, and adverse effects on consumers and public funds. Reliefs sought included declaration of bid rigging, cancellation of the tender, imposition of penalties, and interim stay on execution of the contract.
