Competition Commission of India (CCI) orders fresh investigation against GAIL. This probe has come against the state-owned agency for alleged abuse of dominant position natural gas supply.
This is the second time in less than a week the company has come under the lens of the watchdog for alleged unfair business practices.
The CCI has ordered it after finding a prima-facie evidence of violation of Section 4 of the Competition Act.
Section 4 pertains to abuse of dominant market position.
Mohan Meakin had entered into a Gas Sale Agreement (GSA) with GAIL in December 2008.
It was alleged that GAIL had demanded Mohan Meakin to sign a side letter, amending the terms and conditions of the GSA. It was stated that failing to abide by which, ToP (Take-or-Pay) liability would be raised upon the firm.
The watchdog noted that as per the GSA, Mohan Meakin had to take 90 per cent of the contracted quantity every year failing which it had to pay for the quantities unlifted.
News Source: economictimes.indiatimes.com
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