UNDER SECTION 26(2) OF COMPETITION ACT, 2002.

1. This information has been filed under section 19 of the Competition Act by the informant M/s. Travel Agents Association of India, through their authorized representative, M/s INDUS LAW FIRM, Shri Bhupendra Singh Chauhan, Advocate on 06.08.2010 against the opposite parties for quashing the alleged arbitrary and anti competitive order/office memorandum (No.19024/1/E.IV/2005, dated 24.03.2006) issued by the Ministry of Finance, Department of Expenditure, Government of India, inter alia, directing government officials to purchase travel tickets/tour exclusively from opposite parties, namely, Balmer Lawrie & Co. Ltd. or Ashok Travels and Tours Ltd. and thus violating the provisions of section 4 of the Competition Act,2002.

2. The informant is a trade association of travel agents in India incorporated as a company under the companies Act, with the main objective of promoting the welfare of travel agents fraternity in India.

3. It has been alleged by the informant that the opposite parties entered into an agreement with the Government of India and in pursuance of which an Office Memorandum was issued to all government departments with strict directions to purchase all travel tickets from opposite parties only. This office memorandum (No. F.No. 19024/1/E.IV/2005 dated 24.03.2006) has been issued by Dy. Secretary to Government of India, Ministry of Finance, Department of Expenditure, E.IV branch, New Delhi.

4. It has been alleged that the above action and conduct of the Government of India involving opposite parties is also an abuse of dominant position and has resulted in denial of market access to travel agents fraternity at large. As per the informant the impugned office order has caused appreciable adverse effect on the competition in India as the government officials using air transport in India shall only purchase air ticket from opposite parties and no other alternatives are available.

5. It has been further alleged that by issuing impugned order the Government of India has adopted a practice that gives protection to the opposite parties thereby restricting the class and number of suppliers of air tickets to the government officials and amounts to preventing, distorting and restricting competition in government travel sector in India.

6. On the basis of above averments violation of section 3 and 4 of Act by the opposite parties has been alleged by the informant and it has sought various reliefs including the relief to quash/eliminate the order/office memorandum (No. 19024/1/E.IV/2005, dated 24.03.2006) issued by the Ministry of Finance, Department of Expenditure, particularly clause 3(viii) which inter alia directs government officials to purchase travel tickets exclusively from respondents .

7. The informant has also filed an application under Section 33 of the Act seeking an ad interim ex parte relief as under :

"Direct the government to not to implement directive/notification dated 24.03.2006, inter alia directing the government departments to purchase travel tickets/tours exclusively from the opposite parties, till the time the matter is decided by the Commission".

8. The matter was considered by the Commission in its meeting held on 01.09.2010 and it was decided to call the informant to explain the matter on 15.09.2010. Accordingly notice dated 01.09.2010 was issued by the Commission which was duly served upon the informant and its counsel. On the date fixed, i.e., 15.09.2010 neither the informant nor the counsel appeared nor any written submission was submitted in this regard. Therefore, the matter is being disposed of on the basis of material available on record.

9. The Commission has considered carefully all the allegations made in the information and the entire material available on record with regard to the facts of the case. Before examining the allegations of violation of Competition Act in this case, it is essential to discuss the contents of the OM in question. The OM dat