Competition Comm orders probe against state-owned IREL for alleged unfair biz practices
Oct 19, 2022
Synopsis
On the basis of the material available on record, the regulator said there appears to be substance in the allegations levelled by the informant and those prima-facie violate Section 4. As a result, CCI has ordered a detailed investigation by the Director General (DG), its probe arm. Ilmenite -- FeO.TiO2 -- is one of seven economically important strategic rare-earth minerals mined and processed from beach sand.
The Competition Commission has ordered a detailed probe against state-owned IREL for alleged abuse of its dominant position in supplying and pricing of beach sand ilmenite in the country. The order has been passed on a complaint filed by Tamil Nadu-based Beach Mineral Producers Association (informant) which alleged that the company was indulging in unfair pricing beach sand ilmenite, among other issues.
To assess the matter, the Competition Commission of India (CCI) considered 'mining and supply of beach sand ilmenite in India' as the relevant market.
IREL is into mining and production of various minerals, rare earths and chemicals.
"The conduct of OP (Opposite Party) seems to have resulted in unfair/ discriminatory conditions as well as pricing for domestic consumers and are prima facie in violation of the provisions of Section 4(2)(a)(i) and 4(2)(a)(ii) of the Act.
"Further, the conduct also appears to be prima facie in contravention of the provisions of Section 4(2)(c) of the Act due to denial of input to the informant's members," CCI said in the order dated October 18.
The OP is IREL (India) Ltd and Section 4 of the Competition Act pertains to abuse of dominant position.
On the basis of the material available on record, the regulator said there appears to be substance in the allegations levelled by the informant and those prima-facie violate Section 4.
As a result, CCI has ordered a detailed investigation by the Director General (DG), its probe arm.
Ilmenite -- FeO.TiO2 -- is one of seven economically important strategic rare-earth minerals mined and processed from beach sand.
It along with the other six beach sand minerals, viz., rutile, leucoxene, monazite, zircon, garnet and sillimanite, are popularly known as beach sand minerals.
Ilmenite is processed to derive products such as titanium dioxide and titanium metal.
[The Economic Times]
