CCI rejects cartel complaint against Adani, RP-Sanjiv Goenka, Vedanta in coal block auctions

The Competition Commission of India (CCI) has dismissed a complaint alleging cartelisation and bid-rigging by major corporate groups including Adani Enterprises, RP-Sanjiv Goenka Group, Vedanta, Hindalco, UltraTech and Jindal Power during coal block auctions conducted in 2015 and 2023. (Deepika Vs Calcutta Electricity Supply Corporation).The Commission held that there was no prima facie case of contravention of Section 3(3) of the Competition Act, 2002..The information filed by one Deepika alleged that group entities of RP-Sanjiv Goenka and Adani colluded during the auction of the Sarisatolli coal mine in 2015 (1st and 2nd tranches), and that other companies including Hindalco, UltraTech, Vedanta and Jindal Power engaged in similar conduct in other coal mine auctions.In relation to the 2023 (16th tranche) auctions, the informant alleged that Adani Group entities (MP Natural Resources, MH Natural Resources) and Cavill Mining (linked to Adicorp Enterprises) suppressed bids through connected entities to win coal blocks in North West of Madheri and Gondbahera Ujheni..The Commission held "As such, on the basis of the comments received from the MoC, it seems that the procurer has no grievance or apprehension of there being any cartelisation or bidrigging in the 1st and 2nd or 16th tranche of coal mines auction. In fact, the MoC has stated w.r.t. 16th tranche that no complaints were received by the Nominated Authority alleging any cartelisation.".With respect to the 2023 auctions, the CCI noted that the participation of an independent entity such as Gujarat Mineral Development Corporation (GMDC) further weakened any inference of collusion among Adani-linked entities.Regarding the Sarisatolli coal mine auction, the Commission found that the presence of GMR Chhattisgarh Energy, an unrelated bidder, negated the claim of a concerted arrangement.On the allegations of cartelisation in other 2015 auctions, the CCI noted that:"Nonetheless, it also weighs with the Commission that no specific allegations or evidence have been placed on record w.r.t. the alleged cartelisation in the auction of any other mine except Sarisatolli coal mine in the 1st and 2nd tranche of coal auctions.”.The Commission also rejected the informant’s application seeking condonation of delay in filing the complaint regarding the 2015 auctions. The amended Section 19(1) of the Competition Act bars the CCI from entertaining information filed beyond three years unless “sufficient cause” is shown.The CCI observed that the CAG report, which formed the basis of the allegations, had been available in the public domain since 2016. The Commission held that the explanation that the names of bidders were only disclosed via RTI in 2023 did not constitute sufficient cause.“...no purpose would be served by getting this issue investigated at such a belated stage, specifically in light of the fact that the MoC itself has not expressed any concerns w.r.t. auction of this coal mine in 2015.”.[Read Judgment]