The National Company Law Appellate Tribunal (NCLAT), New Delhi upheld the Competition Commission of India’s (CCI) ruling that Adani Gas abused its market position in a case relating to supply and distribution of natural gas in Faridabad.
However, it cut the penalty to 1% from 4% of the average annual turnover for the relevant three years. In 2014, the CCI had imposed a penalty of over ₹25 crore, or 4% of the firm’s turnover for the last three financial years. Adani Gas had moved NCLAT against the decision.
Also read | Total of France agrees to buy 37.4% stake in Adani Gas
The only conclusion deducible on the basis of material available on record was during the relevant period there was no gaseous substitute for natural gas available to industrial units in Faridabad, the NCLAT noted and affirmed the finding that Adani Gas occupied a position of strength, enjoying dominant position in the relevant market.
The NCLAT also said the company had made modifications to the gas supply agreements based on its suggestions as well as voluntarily, resulting in consumer- friendly clauses and eliminated those which were discriminatory. It reduced the quantum of penalty to 1%.
“We are of the firm opinion this reduction would meet the ends of justice and achieve the desired object of the statue in the peculiar facts and circumstances of the case,” it added.
