India Glycols Ltd. & Ors. Vs Indian Sugar Mills Association & Ors. (Competition Commission of India)
In 2013, India Glycols Ltd. and several other companies filed complaints against sugar mills and associations, including the Indian Sugar Mills Association (ISMA) and the National Federation of Co-operative Sugar Factories (NFCSF), alleging anti-competitive practices. These complaints arose after the Indian government mandated Oil Marketing Companies (OMCs) to sell Ethanol Blended Petrol (EBP), leading to a joint tender for ethanol procurement.
Key Allegations:
- Price fixation and bid-rigging by sugar mills.
- Limiting ethanol production to create artificial scarcity.
- Joint tendering by OMCs considered anti-competitive.
Investigation Findings:
- The Director General (DG) investigated and concluded that joint tendering by OMCs was not anti-competitive.
- ISMA was found to have violated provisions of the Competition Act.
- EMA and its President were found in violation, while NFCSF’s allegations could not be substantiated.
- Most sugar mills were found to have engaged in anti-competitive conduct.
Proceedings: Following the DG’s report, the CCI allowed parties to present objections and evidence, including cross-examinations of witnesses. A supplementary investigation focused on sugar mills in Maharashtra found no contraventions.
Final Order: On September 18, 2018, the CCI initially imposed penalties on various parties. However, after appeals, the NCLAT set aside this order and directed the CCI to conduct a fresh hearing.
