Millennium Post

Compat to hear CIL plea against CCI’s Rs 1,773-cr fine next month

The tribunal heard the matter on Thursday and posted it for further hearing on 16 April. In December, the Competition Commission of India (CCI) had slapped Rs 1,773-crore fine on the state-owned miner for for allegedly abusing its dominant position in fuel supplies. On 26 February, the tribunal had stayed the penalty subject to CIL depositing Rs 50 crore in three weeks' time.
The company has already deposited the money.

The quantum of penalty — Rs 1,773.05 crore — is equal to 3 per cent of the PSU's average turnover for the last 3 years.

It was also the major fine imposed by CCI on a state-owned enterprise. CCI had said that CIL is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal. Coal India Ltd abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs (Fuel Supply Agreements) through a bilateral process with procurers, the CCI order had said. Subsequently, CIL approached the tribunal.
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