Press Information Bureau
Government of India
Ministry of Corporate Affairs

18-April-2012 16:49 IST

The Competition Commission of India has found three parties namely, M/s PES Installation Private Limited, M/s MDD Medical Systems Private Limited & M/s Medical Products Services in contravention of provisions of the Competition Act for their collusive acts in supply of medical equipments to Sports Injury Centre (SIC), Safdarjung Hospital, New Delhi. The Commission has observed that bid rigging is a measure drain on the exchequer raising the cost of procurement for the Government. Taking into account the anticompetitive acts of these parties, the Commission imposed penalty@ 5% on the average turnover of 3 years aggregating to about Rs.3.01 crore on them.

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RC/JR

Bid rigging found in medical equipment procurement; penalty imposed under the Competition Act for collusive supply. The Commission found three suppliers engaged in bid rigging in the supply of medical equipment to a government hospital, concluding their collusive conduct inflated procurement costs and violated the Competition Act. Penalties were applied at five percent of average turnover over three years, aggregating to the monetary sanction reported in the press release, reflecting enforcement of turnover-based penalties to deter anticompetitive behaviour in government procurement.