The natural gas distribution service of Adani Gas (AGL) in Faridabad has come under the scanner of the Competition Commission of India after the latter received complaints from Faridabad Industries Association (FIA).
FIA is an umbrella body of industrial units in Faridabad (Haryana). The competition commission received a complaint from FIA that Adani Gas was putting ‘unilateral and lopsided’ terms and conditions in Gas Sales Agreement (GSA) with its buyers. Consequently, the panel asked its investigation arm to complete the probe within two months.
AGL imposed its terms in complete disregard of basic principles of law of contract as it was a dominant player. It has also created a situation of ‘take it or leave it’ for the buyer of gas in Faridabad, CCI said in a direction to its Director General seeking a probe into the matter.
Further, the industry body alleged that Adani Gas has revised the prices of gas “unilaterally and irrationally”. AGL is engaged in the business of setting up distribution network in various cities to supply natural gas to industrial, commercial, domestic and CNG customers.
On careful consideration of the matter, the Commission is of the opinion that various clauses of GSA prima facie appear to impose unfair conditions or prices upon the buyers in the matter of sale and purchase of gas in contravention of the existing provisions (of the relevant sections of the Competition Act)… and a thorough investigation is required to be made to examine the relevant market, the GSA and the conduct of the opposite party, CCI said.
An enterprise or group is prohibited from abuse of dominant position under this section.
Leave a Reply
You must be logged in to post a comment.