Ulink Agritech Private Limited vs Agro Input Dealers Association, Agro Input Welfare Association, Mr. Manmohan C. Kalantri, Mr. Arvindbhai Jerambhai Patel

After considering all the material available on record, IR and submission of the parties, the Commission finds that OP-1, OP-2, OP-3, and OP-4 have acted in contravention of provisions of Section 3(3)(b) read with Section 3(1) of the Act. Accordingly, the Commission, in terms of Section 27(a) of the Act, directs the OPs and their respective officials who have been found liable in terms of provisions of Section 48 of the Act, to cease and desist in future from indulging in conduct found to be in contravention of the provisions of the Act.

As per Section 27(b) of the Act, the Commission is empowered to impose such penalty, as it may deem fit which shall be not more than ten per cent of the average of the turnover or income, as the case may be, for the last three preceding FYs, upon each of such person or enterprise which is a party to anti-competitive agreement. Though in terms of proviso to Section 27(b) of the Act, the Commission, in case any agreement referred to in Section 3 of the Act has been entered into by a cartel, may impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty of up to three times of its profit for each year of the continuance of such agreement or ten per cent of its turnover or income, as the case may be, for each year of the continuance of such agreement, whichever is higher. The Commission, considering the nature of the organisations involved in the contravention, deems it appropriate to not invoke the proviso of Section 27(b) of the Act.

In determining the quantum of penalty upon enterprises and their individual persons the Commission is required to consider the Penalty Guidelines. The Commission, subject to the facts and circumstances of each case, may consider a period of three years preceding the year in which the IR is received by the Commission. The IR was received on 28.01.2025. Accordingly, relevant FYs to be considered for imposition of penalty are FYs 2021-22, 2022-23 and 2023-24.

Considering the nature and gravity of the contravention and nature of the industry, the Commission finds it appropriate to impose penalty @10% of the average relevant income on all the OPs and individual persons liable under Section 48 of the Act.

Further, in terms of the Penalty Guidelines, the Commission notes that the OPs have cooperated with the investigation and that this is their first violation of provisions of the Act. Therefore, keeping in view the nature of the OPs and the abovesaid mitigating factors, the Commission decides to impose penalty @5% of average income on each OP and individual person held liable under the provisions of Section 48 of the Act.

Accordingly, the amount of penalty imposed on the OPs and individuals is tabulated below:

Penalty on OPs and individual persons liable under Section 48 of the Act

Accordingly, the Commission directs the aforementioned OPs and their individuals to deposit the penalty amount within sixty (60) days of the receipt of this order.

The Commission, in terms of Section 27(g) of the Act, also directs the contravening OPs to organise a competition compliance training programme in order to spread awareness about competition laws and to promote a culture of competition compliance within their associations and submit a compliance report within a period of sixty (60) days from the date of receipt of this order.

Before parting with the order, the Commission deems it appropriate to deal with the request of the parties seeking confidentiality over certain documents/information filed by it under Regulation 36 of the General Regulations. Considering the grounds given by the parties for the grant of confidential treatment, the Commission grants confidentiality to such documents / data / information in terms of Regulation 36 of the General Regulations, subject to Section 57 of the Act, for a period of three years from the date of passing of this order. It is however made clear that nothing disclosed in the public version of this order shall be deemed to be confidential or deemed to have been granted confidentiality, as the same have been used and disclosed for purposes of the Act in terms of the provisions contained in Section 57 thereof. Accordingly, the Commission directs that two versions of the present order may be issued i.e., the public version shall be served upon the Informant, the OPs and their respective individuals and the confidential version shall be shared with the OPs in the confidentiality ring viz., OP-1, OP-2, OP-3 and OP-4 through members of the confidentiality ring. The public version of the order shall be prepared keeping in mind the confidentiality requests and the provisions of Section 57 of the Act read with Regulation 36 of the General Regulations. For convenience, it is directed that the confidential version of this order may be provided to such ring members/ individuals through one of the ring members, who may then share the same with the other ring members nominated by the concerned OP. OP-1 and OP-2 are directed to serve a copy of the confidential version of this order upon their respective individual(s) upon whom penalty has been imposed for the purpose of compliance of this order.

Any pending application(s) filed by the parties shall be deemed to be disposed of in light of the above order.

The Secretary is directed to forward certified copy of the present order to the parties and their respective individuals, in terms of the above directions.

Sd/-(Ravneet Kaur) Chairperson Sd/-(Sweta Kakkad) Member Sd/-(Deepak Anurag) Member