UNDER SECTION 27 OF THE COMPETITION ACT

The information in the instant case has been filed before the Commission by M/s Coal India Limited (hereinafter referred to as the "Informant or CIL") on 10.02.2011 under Section 19 (1)(a) of the Competition Act, 2002 (hereinafter referred to as "the Act") against explosive manufacturers/suppliers in India along with their associations, Explosives Manufacturers Welfare Association (hereinafter referred to as "EMWA") and the Explosives Manufacturers Association of India (hereinafter referred to as "EMAI") for their alleged anti-competitive acts.

2. The facts and allegations as contained in the information, in brief, are as under:

2.1 The informant, M/s Coal India Limited, a Public Sector Undertaking (PSU) of Government of India is engaged in the business of production of coking and non-coking coal of various grades through mining operations in different parts of India on its own and also through its subsidiaries.

2.2 According to information, the explosive manufacturers/suppliers (Opposite Parties Nos. 1 to 10 named in the information and other explosive suppliers in India) are engaged in the activity of manufacturing and supply of different types of explosives such as bulk explosives, cartridge explosives and related accessories in India. EMWA (the Opposite Party No. 11) and EMAI (the Opposite Party No. 12) are the associations of these explosive manufacturers/suppliers (hereinafter referred to as explosive suppliers). Till the year 2009, EMAI was communicating with the informant on behalf of the explosive suppliers. However, since 2009, another association by the name of EMWA has been active, writing to the informant on various issues concerning the explosive suppliers.

2.3 The informant has submitted that it has been using different kinds of explosives for its coal mining operations depending upon the type of coal mines where the explosives are to be used. It procures explosives from explosive suppliers for that purpose through a process of public tender involving two stages - submission of techno-commercial bids followed by the submission of price bids by the short listed bidders. Prior to 2007-08, both the techno-commercial bids and the price bids were required to be submitted in paper form. However, with effect from 2007-08, system of Electronic Reverse Auction is being used for price bids in accordance with the guidelines and orders issued by the Central Vigilance Commission of India (CVC) on the issue.

2.4 The informant has further submitted that it has always endeavoured to conduct the process of tender in a fair and transparent manner, with the objective of ensuring maximum participation by the qualified bidders. It has sought to promote the competitive process and reduce chances of collusion by the bidders through introduction of system of Electronic Reverse Auction.

2.5 It has been alleged that the leading explosive suppliers named in the information control about 75% of the total market share and since they have formed a cartel, 75% of the market has been cartelised. This cartelised behaviour of the explosive suppliers has caused and is continuing to cause harm to the informant in purchase of explosives. According to the informant, the collective illegal actions of the explosive suppliers have resulted in an appreciable adverse effect on competition in India in several relevant markets, including the market of bulk explosives, cartridge explosives and fuses and detonators.

2.6 As per the informant, cartelisation among the explosive suppliers has been in existence since 2005 and continues to exist till date. It has been alleged that the explosive suppliers have contravened the provisions of section 3(3)(a), 3(3)(b) and 3(3)(d) of the Act through their various acts like collectively boycotting the Electronic Reverse Auction organised by the informant for finalisation of Running Contracts in January 2010 and writing identical letters to the informant in this connection, collectiv