1. The instant information has been filed by India Glycols Ltd. (Informant) u/s 19(1)(a) of the Competition Act, 2002 ('the Act') against Indian Oil Corporation and Others (Opposite Parties) alleging inter alia contravention of provisions of sections 3 & 4 of the Act.

2. Briefly stated, the informant is engaged in the business of manufacturing and marketing of Ethanol based Chemicals and is dependent upon the supply of Ethanol. Ethanol is a value added product produced from molasses which is a product of Sugar Industry. In 2003, Govt. of India mandated use of 5% Ethanol in petrol through its Ethanol Blended Petrol (EBP) Programme. India's Ethanol production is not enough to meet the existing requirements of various users including potable liquor, Chemical Industry and as fuel. EBP Programme which mandates 5% blending of Ethanol with petrol, was further widening the demand and supply gap of Ethanol and as such squeezing the supply of Ethanol to alcohol based Chemical Industry including the informant.

3. It is submitted by the informant that the decision to have a 5% blending of Ethanol with Motor Spirit (MS or gasoline) was taken in 2003 and the first phase of implementation began in 2006. A three-year programme was devised and single or joint tenders were invited by Government owned Oil Marketing Companies ('OMCs') i.e. Indian Oil Corporation (Respondent 1), Hindustan Petroleum Company Ltd (Respondent 2), Bharat Petroleum Company Ltd (Respondent 3) and Indo Burma Petroleum ('IBP") from manufacturers of Ethanol in 2003 and in year 2006.

4. A single or joint tender was floated by the OMCs, excluding IBP, in the year as well 2009 on the advice of the Ministry of Petroleum. For fixing the price of Ethanol this time, the matter was referred to the Cabinet Committee of Economic Affairs (CCEA). CCEA approved an ad-hoc uniform ex-factory price throughout the country at Rs. 27/litre for Ethanol procured by OMCs from the date of communication of the order till the time price was fixed by the expert Committee. The figure of Rs. 27/litre was also discussed and decided by the members of Indian Sugar Mills Association (ISMA) in its meeting held on 13 May, 2010.

5. It is submitted that from the minutes of the meeting of ISMA it was apparent that 'Price of Ethanol' was discussed in the meeting and the Association decided to put pressure upon the Government to fix the price of Ethanol as discussed by the members of ISMA. The president of ISMA also expressed his desire to enforce the cartelized agreement by threatening to stop supply of Ethanol in case the price suggested by ISMA did not get the approval of the Govt.

6. It is further submitted that the CCEA press release categorically stated about imposition of a penalty on both the supplier sugar factories engaged in producing Ethanol in case they failed to meet the target and on OMCs in case they failed to lift the contracted quantity. This penal condition forced the parties to the agreement to continue to deal with the pre-fixed price of Ethanol.

7. It is alleged by the informant that joint tendering by four OMCs was an agreement between horizontal players to procure Ethanol from various suppliers such as Sugar Mill owners, who too were the players in horizontal relationship and the price fixation by players in the same business breached the provisions of sections 3(3)(a), (b) & (c) of the Act. The entire chain beginning from ISMA to Ministry of Petroleum, Ministry of Food and Consumer Affairs to OMCs was closely inter connected.

8. It is submitted that the minutes of meeting of ISMA suggest that its members not only discussed the pricing of Ethanol but also discussed the same with another sugar Mill Association viz NFCSF and finally got the nod of the Government through CCEA. It primarily being a business agreement among Sugar Mill owners-players at same level of business, hence a violative of section 3(3)(a) of the Act.

9. Another allegation made by the Informant is that the Sugar Industry wa