Competition Commission of India (CCI’ passed an order on 7th February 2022 under the provisions of Section 27 of the Competition Act, 2002 (‘Act’) after having found Dumper Truck Union to be in violation of Section 3 of the Act.

CJ Darcl Logistics Ltd (‘CJD Logistics’), the Informant, filed an information with CCI alleging that the said union, operating in Sanu Mines area, Jaisalmer, did not allow CJD Logistics to carry out transportation work through its own vehicles and also made it mandatory to take vehicles along with drivers from the members of the union only, and that too, on a higher rate. Furthermore, Dumper Truck Union and its members caused hindrances by not only not allowing the Informant’s vehicles to execute the work but also threatening drivers and personnel of the Informant with bodily harm in case they tried to execute the work.

Based on evidence on record, CCI found Dumper Truck Union to have contravened the provisions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Act, as the said union determined the prices of transportation services in a concerted manner and also limited and controlled the provision of such services. Accordingly, the Commission directed Dumper Truck Union and Mr. Kunwar Raj Singh, the then Chairman of Dumper Truck Union (held liable in terms of the provisions of Section 48 of the Act) to cease and desist from indulging in practices that were found to be in contravention of the provisions of Section 3 of the Act.

A copy of the order in Case No.31 of 2019 is available on CCI’s website at the following link:

https://www.cci.gov.in/sites/default/files/31-of-2019.pdf

Anti-competitive conduct: union found to fix transport prices and restrict services, ordered to cease such practices. CCI concluded that Dumper Truck Union concertedly determined transportation prices and restricted access to transport services, preventing an independent logistics firm from using its own vehicles, compelling use of union vehicles and drivers at higher rates, and obstructing and threatening the informant's personnel; the Commission held the union and its then chairman liable and issued a cease and desist directive to discontinue those anti-competitive practices.