The Competition Commission of India has quashed the allegations of unfair business practices against NTPC. The allegations were with regards to electricity purchase pacts were leveled by TPDLL, a joint venture firm of Tata Power Company Ltd and Delhi Power Company Ltd.
The allegations against NTPC stated that the company imposed unfair conditions in their power purchasing agreements such as the absence of any exit clause for TPDLL and the lengthy duration of the contract which extend upto 15-20 years.
The allegations were quashed by the CCI because NTPC was not prima facie involved in abuse of dominance. CCI did not find the actions of NTPC as being violative of section 4 of the Competition Act, which defines what an abuse of dominant position is and lays down criteria for determining when an abuse of dominant position takes place. The Competition Commission of India found that TPDLL was aware of the terms of the contract and rationalized the duration of the contract in light of general investment practices of the companies.
Read more at :
http://indiatoday.intoday.in/story/cci-sets-aside-complaint-against-ntpc-on-ppa-issue/1/1075983.html
This post has been authored by Ravi Shankar from West Bengal National University of Juridical Sciences.
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