The Competition Commission has refused charges against Indian Oil Corporation and Mahanagar Gas that they indulged in unfair business practices with respect to distribution of CNG.
In a complaint, Bharat Garage, a partnership firm engaged in distribution of Compressed Natural Gas (CNG), had alleged that an agreement executed between IOC and Mahanagar Gas is anti-competitive and limits the production/supply of CNG and causes an appreciable adverse effect on the competition.
Finding no prima facie case, the Competition Commission of India (CCI) in an order released recently noted that the agreement wherein IOC would be selling the product of the Mahanagar Gas through its outlets "is not exclusive in nature, thus such an agreement does not seem to be anti-competitive in nature".
CCI has also rejected the allegations of cartel-like behaviour levelled against the two firms. With regard to allegations pertaining to charging of commission by IOC, issue regarding the termination of agreement with the complainant, non-supply of CNG directly to it by Mahanagar Gas, among others, CCI said that these "prima facie, do not point to any activities/conduct contravening provisions of...the (Competition) Act".
Mahanagar Gas was charged with the function of ensuring adequate supply of CNG to customers in the state of Maharashtra.
In order to discharge this function, the firm had executed agreements with dealers and oil companies for distribution of CNG.
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