Kuldeepsinh Mahendrasinh Jadeja Vs Pragyawan Technologies Pvt. Ltd. (Competition Commission of India)
Competition Commission of India (CCI) has dismissed allegations of bid-rigging and collusive bidding in tenders for toolkits under the Pradhan Mantri Vishwakarma Yojana, filed by Kuldeepsinh Mahendrasinh Jadeja against Pragyawan Technologies Pvt. Ltd. (OP-1) and KLN Engineering Pvt. Ltd. (OP-2). The tenders, issued by the National Small Industries Corporation Ltd. (OP-4) on behalf of the Ministry of Micro Small and Medium Enterprises (OP-3), were for the procurement of toolkits for artisans and craftspeople across 18 trades. Jadeja alleged that OP-1 and OP-2 engaged in anti-competitive practices, with OP-2 submitting supporting bids to favor OP-1.
The informant claimed that OP-4’s tenders were not uploaded on the Government e Marketplace (GeM) as mandated by the General Financial Rules, 2017. He further alleged that subsequent corrigenda, including changes to financial turnover criteria and the introduction of a preference for original equipment manufacturers, were manipulated to benefit OP-1. Jadeja highlighted that OP-2 was consistently disqualified at the technical stage, while OP-1 qualified in multiple tenders, raising suspicions of collusion. He also pointed out that OP-1’s business portfolio, as stated on its website and in its Memorandum of Association, did not align with the toolkit manufacturing requirements.
The CCI, upon reviewing the information and submitted documents, found no evidence of a collusive pattern between OP-1 and OP-2. While OP-1 qualified in several tenders and OP-2 was consistently disqualified, the CCI noted that OP-1 was not declared the L1 (lowest bidder) in any of the concluded financial evaluations. The commission also observed that the two companies had different registered addresses and no common directors or key personnel, indicating a lack of apparent connection.
The CCI concluded that the allegations of non-publication on GeM and relaxation of eligibility criteria did not constitute prima facie violations of the Competition Act, 2002. Regarding the bid-rigging allegations, the commission found no concrete evidence of collusion between OP-1 and OP-2. Therefore, the CCI closed the matter under Section 26(2) of the Act, which allows for the dismissal of cases where no prima facie contravention is established. The commission also disposed of the informant’s application for interim relief, which sought to halt the declaration of financial evaluation results.
FULL TEXT OF THE ORDER OF COMPETITION COMMISSION OF INDIA
ORDER UNDER SECTION 26(2) OF THE COMPETITION ACT, 2002
The Information in the present matter has been filed by Shri Kuldeepsinh Mahendrasinh Jadeja (‘Informant’) under Section 19(1)(a) of the Competition Act, 2002 (the ‘Act’) alleging contravention of the provisions of Section 3(3) of the Act by Pragyawan Technologies Pvt. Ltd. (‘OP-1’) and KLN Engineering Pvt. Ltd. (‘OP-2’), (collectively ‘the OPs’), in the tenders published by the National Small Industries Corporation Ltd. (‘OP-4’), the Nodal Agency of the Ministry of Micro Small and Medium Enterprises (‘OP-3’), on the Government e Marketplace (‘OP-5’), with respect to procurement of Toolkits for workers under the Pradhan Mantri Vishwakarma Yojana.
