1. Three separate information (two by ARIL and one by KRIL) were filed on different dates by the Informants under section 19(i)(a) of the Competition Act, 2002 (Act) for alleged abuse of dominant position by the opposite parties functioning as a group entity. As the core issues of all these cases are similar and related, all three information will be disposed of in the present single Order.

Parties

2.1 Kribhco Rail Infrastructure Limited (KRIL) is a 100% subsidiary of Krishak Bharti Co-operative Limited (KRIBHCO), a co-operative undertaking in which Government of India is stated to hold approximately 48.36% of the total equity. While KRIBHCO is engaged in the business of manufacturing, marketing and distribution of fertilizers and other agricultural products, the objectives of KRIL include operating container trains and undertaking infrastructure projects. KRIBHCO procured Category I licence in the year 2007 for running container trains which was later transferred to KRIL.

2.2 Arshiya Rail Infrastructure Limited (ARIL) was incorporated in 2008 as a wholly-owned subsidiary of Arshiya International Ltd. and is an integrated supply chain and logistics infrastructure solutions provider. It holds category I licence to run container trains.

2.3 Container Corporation of India (CONCOR) is a public sector company incorporated in March 1988 under the Companies Act, 1956, set up with an intention of developing multi-model transport and logistic support for domestic and international containerized cargo. Post-commencement of its operations, container freight service of IR is being handled by CONCOR through yearly MoU. Post 2007, CONCOR is in the league of Container Train Operators (CTOs), as envisaged under the 'Policy to permit various operators to move container trains on Indian Railways' (Policy).

2.4 Ministry of Railways (MoR) is a Central ministry under the Government of India (GoI) in-charge of railway operations in India - both government and non-government railway and is assisted by the Railway Board. Under the provisions of the Railway Board Act, 1905, Railway Board has been vested with the powers and functions of the Government of India. Indian Railways (IR) is a departmental enterprise in the government sector (under the administrative control of MoR) that owns and operates India's rail network. Among its major functions, IR offers passenger as well as freight services across the country through various types of wagons and other rolling stocks. It also offers certain ancillary services like catering, hospitality etc.

Information

3.1 As submitted by the Informants, until the year 2006, rail freight service in India was provided by IR (through general purpose wagons) and CONCOR (through container trains) only. With increase in trade volumes and resultant growth of container traffic in India, need was felt to augment transportation over rail network. In February 2005, the Union Minister for Railways announced that MoR and Government of India would permit private operators to run container trains on the IR network. It was, therefore, decided to open rail container freight segment to private parties through Public Private Partnership (PPP).

3.2 Accordingly, MoR appointed RITES Limited (RITES), a multi-disciplinary consultancy organization to study 'Operation of Container Trains on Indian Railways'. The Report submitted by RITES highlighted the need for allowing private container train operators other than CONCOR, which would bring financial as well as operational benefits to the Railways.

3.3 Thereafter, on 09.01.2006, MoR issued a policy document under which Private Container Train Operators (PCTOs) were assured of non-discriminatory access to move container trains on the rail network on the same line as CONCOR for both international as well as domestic traffic. On 26.09.2006, MoR notified the 'Indian Railways (Permission for operators to move container trains on Indian Railways) Rules, 2006' granting, inter alia, permission to carry a