CCI to probe charges against Adani Gas

Following complaints filed by the Faridabad Industries Association (FIA) of alleged abuse of dominance by Adani Gas, the Competition Commission of India (CCI) has ordered a probe into the matter.

CCI has found 'prima facie' evidence of unfair conditions in the gas supply agreement of Adani Gas with its buyers in Faridabad.

Following the directions of CCI, the direct general of investigations in CCI will now probe the matter after giving opportunities to all parties involved to present their case.

Adani Gas is engaged in the business of setting up distribution network in various cities to supply natural gas to industrial, commercial, domestic and CNG customers.

FIA, in its complaint to CCI, has alleged that Adani Gas (AGL) was putting 'unilateral and lopsided' terms and conditions in Gas Sales Agreement (GSA) with its buyers in Faridabad.

FIA, an umbrella body of industrial units in Faridabad, has also alleged that AGL has revised the prices of gas "unilaterally and irrationally".

"On careful consideration of the matter, the commission is of the opinion that various clauses of GSA, prima facie, appear to impose unfair conditions or prices upon the buyers in the matter of sale and purchase of gas in contravention of the existing provisions (of the relevant sections of the Competition Act)... and a thorough investigation is required to be made to examine the relevant market, the GSA and the conduct of the opposite party," CCI said.

These sections prohibit abuse of dominant position by an enterprise or group.

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