CCI Closes Complaint Against Survey Of India: Procurer Free To Prescribe Technical Conditions Under Tender

The Competition Commission of India ('CCI') comprising Ms. Ravneet Kaur (Chairperson), Mr. Anil Agrawal (Member), Ms. Sweta Kakkad (Member), and Mr. Deepak Anurag (Member) closed the complaint against Surveyor General of India, Survey of India ('OP-1') and Technical Committee for Purchase of Plotter, Survey of India ('OP-2'). The complaint was filed alleging contravention of the provisions of Section 3 of the Competition Act, 2002 ('Act') while procuring LED Plotters with Folders, by the Survey of India, Department of Science and Technology ('SoI').

The CCI held that technical criteria or conditions within the tender documentation can be prescribed by the procurer as per its particular need.

Brief Facts:

Tenders were released by SoI for procurement of LED Plotters with Folders. The informant contended that the tender followed an anti-competitive bidding process. It favored a cartel of bidders such as Reprographics India and its two alleged resellers: Indi Innovation and Solutions and CADMARC Software Pvt Ltd. having a monopoly on the said product type enabling them to quote exorbitant rates due to lack of any competition even when better and cheaper products with desired performance are available in the market. Thus, contending that the actions of SoI contravene Section 3 of the Act.

Observations of the Commission:

The CCI closed the case and by placing reliance on its earlier decisions in Mr. Dushyant vs. National Accreditation Board for Testing and Calibration Laboratories (NABL) & Ors. and Shri Prem Prakash vs. Power Grid Corporation of India Ltd. held that technical criteria or conditions within the tender documentation can be prescribed by the procurer as per its particular need.

The Commission noted that presently as per the tender, certain conditions were prescribed for bidders like a minimum average turnover of INR 60 lakhs in the last three years and one year of experience. Moreover, preference was given to Make in India products and micro and small enterprises and startups which were also exempted from the conditions of minimum average turnover and experience.

In conclusion, the CCI observed that there is no information showing the existence of any cartel among the bidders as mentioned by the Informant, thus making no case for contravention of Section 3 of the Act. Further, there is no allegation in context to Section 4 of the Act and even from the available information, no dominance of SoI is made as numerous buyers procuring LED Plotters apart from the SoI exist.

Case Title: XYZ (Confidential) And Surveyor General of India, Survey of India

Case No.: Case No. 24 of 2023

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