The Indian Competition Authority issues a ’cease and desist’ order to 29 manufacturers of elastic rail clips engaged in bid-rigging in a tender in the railway sector (Elastic rail clips case)

SUMMARY In tendering for the supply of anti-theft elastic rail-clips to the South Eastern Railways, 29 manufacturers were found to have quoted the same rates, allocated the tender quantity amongst themselves, artificially raised prices and acted in concert to eliminate competitors. The CCI ordered the parties to cease and desist from all bid rigging activities. However, noting the complete lack of awareness of the manufacturers, who were all small and micro enterprises, the CCI exceptionally decided not to levy any penalties. Background: The Principal Chief Engineer, South Eastern Railway (Informant), drew the attention of the Competition Commission of India (CCI) to the bids submitted by the bidders for the procurement of anti-theft elastic rail clips (ERC) suspecting cartelisation