According to an official statement, CCI imposed a penalty of Rs 54.70 crore on Escorts Ltd; Rs 1.91 crore on Stone India Ltd and Rs 5.70 crore on Faiveley Transport Rail Technologies. "The penalty has been worked out on the basis of 2% of average turnover of these companies for the three financial years from 2009-10 to 2011-12," the statement said.
"The penalty has been imposed after CCI took up a case of suo motto basis based on information by the complainant. The case relates to a DLMW tender wherein the three vendors quoted identical rates for feed valves," it added.
The three companies have also been directed to Cease and Desist from indulging in such anti-competitive conduct in future. Noting that public procurement is a major concern of all competitive authorities in the world, CCI said that it cannot ignore bid rigging in case of small procurement nor can consider small procurements unimportant.