Compat directs status quo on Rs 25-cr penalty on Adani Gas

Written by Kaushal shroff | New Delhi | Updated: Aug 7 2014, 07:08am hrs
The Competition Appellate Tribunal (Compat) on Wednesday directed that a status quo be maintained in respect to a penalty of R25.67 crore levied by the countrys competition watchdog on Adani Gas.

The Competition Commission of India (CCI) had levied the penalty after it found the company guilty of abusing its dominant position in the supply of natural gas in Faridabad.

Additionally, the watchdog has been restrained by the tribunal from taking any further action against the company.

The penalty pertains to a case filed by Faridabad Industries Association (FIA), which had alleged that Adani Gas had imposed unfair conditions upon the buyers under gas sales agreement (GSA).

Now, Compat has also directed that there should be no modifications in the gas sales agreement durin the pendency of the matter before the tribunal.

The tribunal also issued notice to the CCI on Wednesday after hearing an appeal filed by Adani Gas challenging the order.

In July, CCI had slapped a fine of R25.67 crore on Adani Gas for violating competition norms by abusing its dominant market position.

Adani Gas is a subsidiary of Adani Enterprises, which is part of the diversified Adani Group.

Adani Gas is engaged in the business of setting up distribution network in various cities to supply natural gas to industrial, commercial, domestic and CNG customers.