Indian Railways tender case: CCI imposes Rs 62-cr penalty on three firms

Written by fe Bureau | New Delhi | Updated: Feb 7 2014, 18:24pm hrs
Finding them guilty of cartelisation with respect to a tender for an Indian Railways undertaking, the Competition Commission of India (CCI) has imposed a penalty of Rs 62.31 crore on three engineering companies. The penalty was imposed based on a complaint made by Diesel Loco Modernisation Works (DLMW), a unit of Indian Railways at Patiala, Punjab.

According to an official statement, CCI imposed a penalty of Rs 54.70 crore on Escorts; Rs 1.91 crore on Stone India, 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.