New Delhi, Sep 9 (PTI) Fair trade regulator CCI has rejected a complaint against the Kerala government and bus operator KSRTC regarding the 'Priyadarshini Scheme' that provides free travel for women and transgender persons in the state, saying a public welfare scheme would not ordinarily invite scrutiny under the competition law.

Two private bus operators alleged that the scheme is restricted only to buses of the Kerala State Road Transport Corporation (KSRTC) and that due to the scheme, a substantial proportion of women passengers shifted from private buses, as a result of which there has been a significant reduction in passenger volumes and revenues.

The complaint of alleged abuse of dominant positions was filed against the Keralam government and KSRTC.

The Priyadarshini Scheme, which provides free travel in KSRTC buses for all women and transgender persons, came into effect from June.

In a six-page order, the Competition Commission of India (CCI) said the preference of a particular category of passengers for KSRTC services on account of the fare benefit provided under a state-funded scheme does not, by itself, amount to denial of market access or exclusion of private operators from the market.

"The alleged loss of fare-paying passengers or reduction in revenues may, at best, indicate a commercial disadvantage arising from the implementation of a welfare scheme," the regulator said in the order dated September 8. ​CCI keeps a watch on unfair business practices in the market place and also makes efforts to promote healthy competition.

After considering the facts and allegations of the matter, CCI said the formulation and implementation of a welfare scheme by the government, aimed at public welfare, would not ordinarily invite scrutiny under the (Competition) Act.

“The Commission further notes that the implementation of the scheme constitutes a state-funded welfare measure, under which the state bears the fare in respect of eligible passengers travelling on specified services operated by OP-2. The resultant differential commercial impact on private operators, arising from such a policy measure, cannot, by itself, be characterised as a contravention of the provisions of the Act," the order said.

OP-1 is the Keralam government and OP-2 is KSRTC.

The regulator also said the provision of free travel to women and transgender individuals in the KSRTC buses is a policy measure implemented by the state pursuant to a governmental scheme, under which the state bears the corresponding cost of such travel.

“The fact that the scheme may influence passenger choice does not, by itself, establish that the OPs have imposed an unfair or discriminatory condition upon private stage carriage operators or their passengers," it added.

Finding that there was no prima facie case of violation of the competition law, CCI rejected the complaint. PTI RAM SHM