Ravneet Kaur, CCI Chairperson.
CCI Dismisses Bid-Rigging Allegations in Coal Block Auctions, Citing Lack of Evidence and Delay: New Delhi — The Competition Commission of India (CCI) has dismissed a major complaint alleging cartelisation and bid-rigging by several prominent corporate groups, including Adani Enterprises, the RP-Sanjiv Goenka Group, Vedanta, Hindalco, UltraTech, and Jindal Power, in coal block auctions spanning 2015 and 2023.
In its detailed order, the CCI concluded there was no prima facie evidence to suggest a contravention of Section 3(3) of the Competition Act, 2002, which prohibits anti-competitive agreements, including collusive bidding. The decision effectively clears the companies of the serious allegations and reinforces the regulatory body’s reliance on specific, corroborating evidence and adherence to procedural deadlines.
The Core Allegations
The complaint, filed by an individual named Deepika, centered on two distinct periods of coal mine auctions.
2015 Auctions: The informant alleged that Adani Group and RP-Sanjiv Goenka Group entities colluded to secure the Sarisatolli coal mine during the first and second tranches of auctions. The complaint also implicated other major players—Hindalco, UltraTech, Vedanta, and Jindal Power—in similar alleged misconduct in other mine auctions conducted during the same period.
2023 Auctions: In relation to the 16th tranche of auctions, the complaint accused Adani Group entities (MP Natural Resources, MH Natural Resources) and Cavill Mining (allegedly linked to Adicorp Enterprises) of suppressing bids through connected entities to win the North West of Madheri and Gondbahera Ujheni coal blocks.
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CCI’s Scrutiny and Rationale for Dismissal
The Commission’s decision to dismiss the complaint was based on a multi-pronged approach, systematically addressing each allegation.
For the 2015 Sarisatolli mine auction, the CCI noted the presence of an unrelated and independent bidder, GMR Chhattisgarh Energy. The Commission reasoned that the existence of a competitive and independent bidder in the same auction negated the possibility of a “concerted arrangement” or collusion among the other participants.
For the 2023 auctions, the CCI’s analysis focused on the participation of Gujarat Mineral Development Corporation (GMDC), a state-owned enterprise. The Commission held that the involvement of an independent entity like GMDC in the bidding process significantly weakened any inference of collusion among the Adani-linked entities and Cavill Mining.
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A pivotal factor in the CCI‘s reasoning was the feedback received from the Ministry of Coal (MoC). The Commission’s order highlighted:
“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.”
The lack of concern from the ministry directly responsible for the auctions was a key consideration in the CCI’s final judgment. Furthermore, the CCI pointed out that the informant had failed to provide any “specific allegations or evidence” for the alleged cartelisation in other 2015 mine auctions, beyond the Sarisatolli case.
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Procedural Delay for 2015 Allegations
In addition to the lack of substantive evidence, the CCI also rejected a crucial procedural request by the informant: to condone the delay in filing the complaint regarding the 2015 auctions.
The Competition Act stipulates a three-year window for filing a complaint unless “sufficient cause” for a delay is provided. The CCI observed that the a key basis for the complaint—a report by the Comptroller and Auditor General (CAG)—had been available in the public domain since 2016. The informant’s explanation that the names of the bidders were only disclosed via a Right to Information (RTI) request in 2023 was not deemed sufficient cause for the seven-year delay.
The Commission’s order concluded this point by stating that investigating the matter at such a “belated stage” would serve “no purpose,” especially given the Ministry of Coal’s own lack of concerns about the 2015 auction process.
The dismissal brings a close to the cartelisation and bid-rigging allegations, reinforcing the CCI’s mandate to act on concrete evidence and within established legal timelines.
