India - CCI Dismisses Allegations Of Anti-competitive Agreements And Abuse Of Dominant Position Against Licensed Commission Agents Operating In New Sabzi Mandi, Azadpur.

Legal News & Analysis - Asia Pacific - India - Competition & Antitrust

4 July, 2019

 

On May 10, 2019, CCI dismissed allegations (made by Bablu & Company the (‘Informant’)) of infringement of Sections 3 and 4 of the Act, against Fatehchand & Company and 10 other licensed commission agents operating in the New Sabzi Mandi, Azadpur (collectively ‘Commission Agents’). [1]

 

The Informant alleged that the Commission Agents had abused their role statutorily assigned to them under Section 2(g) of the Delhi Agricultural Produce Marketing (Regulation) Act, 1998 (‘Delhi APMC Act’) by rigging bids, imposing arbitrary and unfair terms, and charging an excessive commission. The Informant also sought a relief of INR 55 billion from the Commission Agents as compensation for the commercial and reputational harm resulting from the aforementioned conduct of the Commission Agents.

 

CCI noted that the concerned Mandi (marketplace) was a ‘market of national importance’ (‘MNI’) under the provisions of Delhi APMC Act, and the Agricultural Produce Marketing Committee (‘APMC’) is vested with the powers to regulate it with a view to safeguard the interest of farmers, producers/ sellers and consumers.

 

Accordingly, it was found that the Informant’s contention did not relate to an issue of competition law. CCI further noted that it had already dismissed similar allegations in an earlier matter (Case No. 15 of 2017 In Re: Bablu & Company v. Fatehchand & Company And Ors.).

 

[1] Case No. 7 of 2019

For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com