Case Law Details
Metallurgical Products India Private Limited (MPIL) Vs Government of India (Competition Commission of India)
Metallurgical Products India Private Limited (MPIL) has filed an Information alleging contravention of Section 4 of the Competition Act, 2002, by the Government of India, specifically the Department of Atomic Energy (DAE), and IREL (India) Ltd. MPIL is engaged in processing Columbite and Tantalite ores to produce Niobium and Tantalum products. DAE is the Union of India’s body responsible for atomic energy-related matters, and IREL is a government undertaking engaged in mining and processing minerals, including Uranium-bearing ores.
MPIL claims strategic importance of Niobium and Tantalum products for India’s technological development and states that DAE has exclusive authority under the Atomic Energy Act, 1962, to license the import and processing of these ores. MPIL further alleges that DAE directed IREL to handle the disposal of radioactive residues generated during MPIL’s processing activities. However, MPIL asserts that DAE and IREL unlawfully terminated their off-take agreement, refused to renew import licenses, and obstructed alternative disposal plans.
MPIL claims that these actions impede its business operations and violate fair competition. They argue that DAE and IREL hold a dominant position in the market for Uranium-bearing Leach Residue disposal, as their activities significantly affect MPIL’s operations and market access. They seek an investigation into the alleged anti-competitive conduct, imposition of penalties, and cessation of such practices by DAE and IREL.
The Competition Commission of India (CCI) reviewed the case, considering DAE’s status as a government department exempt from the Act’s provisions concerning competition. It noted that DAE oversees atomic energy-related matters, including the processing of radioactive substances like Uranium. Therefore, DAE’s actions in this context fall within its sovereign functions, exempting it from competition law scrutiny.
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