In a minor reprieve to the fighting Ambani brothers, the Competition Commission of India (CCI) has ruled out any competition relating to malpractices in the gas supply row.
The competition panel has also decided that there is no need for it to investigate the case. It has firmed up its views after conducting an internal study of the dispute between Anil Ambani-promoted Reliance Natural Resources (RNRL) and the Mukesh Ambani-run Reliance Industries (RIL).
?Since there does not seem to be any issue pertaining to abuse of dominance or and anti-competitive practices in the case, we do not see the need to intervene in it,? a senior official with the CCI said. The competition panel had earlier said if asked by the government it would look into the dispute. The case is already pending with the Supreme Court.
Under the Competition Act, the CCI is empowered to look into cases related to cartelisation, bid-rigging, abuse of dominance and ant competitive practices by companies and individuals.
With the amendments to the Act, the regulator now also has more teeth to go after companies indulging in such malpractices. If found to be guilty, companies can face hefty fines?in fact up to three times their annual profits.
In the RNRL annual general meeting last month, Anil Ambani had raised these very issues and said that RIL was trying to ?perpetuate this monopoly, and earn disproportionate profits at the cost of the people.?
In the gas pricing row between the two brothers, RNRL wants the court to direct Mukesh Ambani-run Reliance Industries (RIL) to supply gas to it at $2.34 per mmBtu, but RIL has argued that it cannot do so without government approval. The Supreme Court has deferred the hearing of the case to October 20 now.