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Petitioner's deliberate omission of material bank account & failure to disclose operational details, even upon specific judicial inquiry, constitutes incomplete compliance with Rule 41(2) - exercise of discretion under Rule 41(3) to issue arrest warrants is justified: HC (See 'Legal Desk') CCI approves subscription of securities of Gentari Renewables India by Sapphire US HoldCo (See 'Corp Brief') CCI approves acquisition of business of Deutsche Bank by Kotak Mahindra Bank (See 'Corp Brief') MoRTH, Bihar sign MoU for Scientific Desilting of Water Bodies (See 'Corp Brief') NITI Aayog and GIZ India sign Implementation Agreement to accelerate Road Freight Decarbonisation (See 'Corp Brief') Union Sports Minister Launches NDTL Extramural Research Grant Policy (See 'Corp Brief') PBPT - Intention behind benami arrangement may be inferred from surrounding circumstances & material on record, even where such intention is not established through direct evidence: Tribunal (See 'Legal Desk') RM calls for balancing operational requirements with research freedom to drive innovation (See 'Corp Brief') APEDA facilitates export of 1.3 MT of Sinduri Pomegranates from Kullu to Dubai (See 'Corp Brief') India elected President of ISA for the 3rd consecutive term: Minister (See 'Corp Brief') Competition Act - Relief being of the nature of final relief cannot be sought at a stage when the matter is being investigated by the DG: CCI (See 'Legal Desk') National Orientation Programme for Tribal Healers on Public Health held in Hyderabad (See 'Corp Brief') CSIR-NIScPR organises third International Conference on Dissemination of Traditional Knowledge (See 'Corp Brief') A&C - Judicial intervention in arbitral proceedings is warranted only in exceptional cases, such as where party is left remediless under the statute or where clear bad faith is established: HC (See 'Legal Desk') WCL emerges as Growth Engine of Coal India, Records Strong Growth in Production (See 'Corp Brief') DPIIT implements Special Campaign to minimise Pendency Across Offices (See 'Corp Brief') SEBI ACT - Provisions of SEBI (Prohibition of Insider Trading) Regulations are violated where an employee of the Company, possessed & communicated Unpublished Price Sensitive Information regarding its forthcoming financial results to an outsider who then traded in company's shares based on such information: SAT (See 'Legal Desk') CCI approves acquisition of certain stake in Vodafone Group PLC by Vega SAS (See 'Corp Brief') CCI approves acquisition of equity of Solenergi Power by Aditya Birla Renewables (See 'Corp Brief') CCI approves acquisition of certain shareholding in Navi Ltd by MIH Payments (See 'Corp Brief') Insolvency and Bankruptcy Code, 2016 - A post-admission settlement can automatically bypass statutory mechanism mandated under Section 12A of the IBC, 2016, particularly in light of stringent amended provisions governing withdrawal of admitted applications: NCLAT (See 'Legal Desk') CCI approves acquisition of equity share capital of IntelliSmart Infrastructure by Adani Energy (See 'Corp Brief') CCI approves merger of Sapphire Foods India with and into Devyani International (See 'Corp Brief') 87 Crores Individuals Screened for Oral, Breast and Cervical Cancers (See 'Corp Brief') Insolvency and Bankruptcy Code, 2016 - Liquidator's claim for refund cannot be adjudicated in the summary jurisdiction under Section 60(5) of the Code, more so where the parties' claims have not been crystallised through adjudication: NCLT (See 'Legal Desk') India-BLEU Joint Economic Commission Session Held in Luxembourg (See 'Corp Brief') India to promote South-South Cooperation and share Agricultural Innovations (See 'Corp Brief') Companies Act, 2013 - 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South Asia LPG Company penalized Rs 19.07 Cr for abuse of dominant position

Published: Jul 11, 2018

BY TIOLCorplaws News Service

NEW DELHI, JULY 11, 2018: THE Competition Commission of India today held the South Asia LPG Company Pvt. Ltd. (SALPG) to be guilty of abuse of dominant position for terminalling services at Visakhapatnam Port. In this regard, the competition watchdog imposed a penalty of Rs 19.07 crores on the company.

The case pertained to access to upstream LPG terminalling infrastructure at Vishakhapatnam Port. Such infrastructure comprises of several components such as unloading arms at the jetty, blender, heat exchanger and cavern (storage facility). Such infrastructure being operated by SALPG is used for handling imports of propane and butane and their blending into LPG. The East India Petroleum Pvt. Ltd. (EIPL) filed an information with CCI under Section 19(1)(a) of the Competition Act, 2002 (Act) alleging that while allowing it to use the blender, the SALPG has been insisting on mandatory use of cavern. This resulted inpaying significant charges to SALPG. The OMCs were thus not finding the LPG terminalling services offered by EIPL economically viable and were constrained to avail the terminalling services offered by the SALPG only. To address this, the EIPL first proposed to use the blender of SALPG and thereafter, take the output directly to the cross-country pipeline, bypassing the cavern. Since this was not agreeable to the SALPG which allowed bypass of cavern to the extent of 25% only, the EIPL proposed to install its own blender, and sought a tap-out and tap-in from the propane and butane lines to discharge blended LPG, bypassing the cavern. This was also not acceptable to the SALPG. Another proposal seeking tap-out from the propane and butane lines at jetty to EIPL own blender and construction of its own infrastructure between the blender and storage facility, was also refused by the SALPG. All this was alleged to be abuse of dominant position by SALPG.

The investigation by the Director General revealed that the SALPG enjoys dominant position in the market for upstream terminalling services at Visakhapatnam Port. Although the SALPG attempted to justify its conduct on grounds of safety & efficiency of business operations, the commission held such conduct to be in contravention of the provisions of Section 4 of the Act. A penalty of Rs 19.07 crores was also imposed on the SALPG for indulging into the anticompetitive conduct.Thereafter, the CCI directed that the SALPG would not insist mandatory use of its cavern and would allow bypass of cavern for both pre-mixed and blended LPG, without any restrictions.

The Commission further held that the SALPG would allow access to its competitors, potential as well as existing, to the terminalling infrastructure at Visakhapatnam Port, subject to compliance with all safety integrity and other requirements under applicable laws and regulations framed thereunder. Such an access should avoid additional cost burden on the SALPG, and the entity seeking access would bear the cost, if any, towards necessary changes to the existing infrastructure. Under this option also, SALPG would not insist on mandatory use of cavern and it would allow bypass of cavern, without any restriction. The SALPG would extend full cooperation for the study or audit undertaken by VPT in relation to the remedies ordered herein. Needless to say, the SALPG would not do anything raising rival's cost.

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