Competition Commission slaps Rs. 25.67 crore penalty on Adani Gas

New Delhi, 7 July, 2014

Fair trade regulator Competition Commission of India(CCI) has imposes Rs.25.67 Cr Penalty On Adani Gas for abusing dominant position. Competition Commission has asked Adani Gas to modify its gas supply pacts.

CCI had ordered a probe into alleged abuse of dominant position by Adani Gas in providing natural gas to commercial and domestic users in Faridabad near Delhi last year in January, following complaints filed with it by Faridabad Industries Association (FIA) for alleged abuse of dominance by Adani Gas. FIA had complained to CCI that Adani Gas Ltd (AGL) was putting ‘unilateral and lopsided’ terms and conditions in Gas Sales Agreement (GSA) with its buyers.

“It is alleged that AGL being in the driver’s seat, is imposing its terms in complete disregard of basic principles of law of contract and has created a situation of ‘take it or leave it’ for the buyer of gas in Faridabad,” CCI had said in a direction to its Director General seeking a probe into the matter.

Relevant sections of the Competition Act prohibits abuse of dominant position by an enterprise or group.