InvestorQ : Why is CCI investigating price rigging allegations by JK Tyres?
sarah Leo made post

Why is CCI investigating price rigging allegations by JK Tyres?

Answer
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Rashi Mehra answered.
7 days ago


The Competition Commission of India or CCI is currently investigating allegations that JK Tyres was guilty of bid rigging. It may even extend to more companies. Haryana state had complained to CCI that JK Tyre used unfair trade practices while bidding to supply tyres for public transport vehicles.

The allegation by the state of Haryana is that non-participation by other tyre firms was suggestive of a concerted act to rig the bid. However, that may not really be conclusive. CCI is also investigating Apollo Tyres, CEAT and MRF.

Normally, if bid rigging can be proved, it can lead to a potential fine of higher of 3 times the profit in each year prices were fixed and 10% of annual revenue. The issue of rigging came up because JK Tyre was the sole bidder and its prices were 34% higher than previous rate.