In re Purbanchal Enterprise & Ors. (Competition Commission of India)
In Re: Alleged bid rigging in Tenders invited by Assam Police Housing Corporation Limited for “Internal and External Electrification works in Police Station Buildings” across the State of Assam.
The matter arose from a complaint by the Office of the Accountant General (Audit), Assam, alleging bid rigging in tenders floated by Assam Police Housing Corporation Limited (APHCL) for electrification works under the MOITRI Scheme. The scheme aimed to improve infrastructure in police stations across Assam, with electrical works contracts awarded through tenders in 2018. The audit indicated that 17 approved vendors manipulated the bidding process, resulting in excess procurement costs of at least ₹7.56 crore.
Upon examining the complaint, the Competition Commission of India (CCI) formed a prima facie view that the bidders engaged in collusive conduct. Patterns such as identical or closely aligned bid values, allocation of L-1, L-2, and L-3 positions among bidders, and narrow price ranges suggested pre-determined bidding. Additionally, bidders quoted rates identical to official schedules or consultant estimates, including replicating errors in those estimates.
The Director General’s investigation found that in most of the 73 tenders, only three or four bidders participated despite there being 17 eligible contractors, indicating bid rotation. Nearly all bidders secured at least one contract, demonstrating distribution of wins. Identical pricing patterns were observed, where L-1 bids matched estimated costs, and L-2 and L-3 bids were marginally higher in fixed increments, showing coordinated pricing rather than independent decision-making.
