United Phosphorus today said it will move the Competition Appellate Tribunal against the Rs 252-crore fine imposed on it by CCI over allegations of collusive bidding and cartelisation.
“The company believes there is no violation on its part as alleged by the Competition Commission of India and it will, in due course, take steps to file against such order of CCI before the Competition Appellate Tribunal,” United Phosphorus said in a BSE filing.
CCI on Monday imposed fine on three companies — United Phosphorus, Excel Crop Care and Sandhya Organics — for collusive bidding and cartelisation in supplying ALP (aluminium phosphide) tablets, used to preserve foodgrains, to Food Corporation of India.
The total fine on the three companies — sum of their three years’ average profit — amounts to Rs 317 crore, of which United Phosphorus has to pay Rs 252.44 crore.
The penalty involved a tender of FCI to supply 600 tonne of ALP tablets in 2009 as well as collective boycott of another tender of FCI in 2011.
Shares of United Phosphorus slumped 5 per cent to Rs 114.20 apiece on the BSE in the late afternoon trade.