CCI order on Adani Gas upheld

Case concerns natural gas supply, distribution in Faridabad

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 Rs. 25 crore, or 4% of the firm’s turnover for the last three financial years. Adani moved NCLAT against this.

The only conclusion was, during the relevant period, there was no gaseous substitute for natural gas available to industrial units in Faridabad, the NCLAT noted and affirmed Adani Gas enjoyed a 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 discriminatory ones.

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