COMPAT overturns CCI's Rs 1,773-crore penalty on Coal India

The Competition Appellate Tribunal (COMPAT) on Tuesday set aside the order of the Competition Commission of India (CCI) imposing a Rs 1773-crore fine on Coal India Ltd (CIL), as well as two related orders, and has remitted the matters back to the CCI for fresh consideration.

On complaints filed by Maharashtra State Power Generating Company and Gujarat State Electricity Corporation Limited, CCI had fined CIL Rs 1,773 crore for abusing its dominant position as a supplier of coal by imposing unfair and discriminatory conditions in its fuel supply agreements with various customers. The CCI then passed subsequent orders in cases filed by the West Bengal Power Development Corporation Limited, Madhya Pradesh Power Generation Company Limited, Sponge Iron Manufacturers’ Association, and Gujarat Heavy Chemicals Limited, which did not impose a further penalty but required CIL to cease and desist from its unfair conduct and modify the terms of its agreements. These have all been set aside by COMPAT.

The COMPAT order states that the CCI should endeavour to complete its proceedings as soon as possible, but no later than within two months from the date of the receipt of the order of the COMPAT. The CCI’s orders have been set aside as the CCI did not follow the principles of natural justice while hearing the parties (the members who signed each of the three orders had not all heard the oral arguments in the three respective cases).

Coal India Ltd