The Competition Commission of India has dismissed a complaint by Bangalore-based Minerals Enterprises Ltd alleging abuse of dominant position by Indian Railways in transportation of iron ore.
Minerals Enterprises’ activities include mining, logistics and infrastructure development besides mining, trading and export of iron ore.
It had alleged that an unfair and discriminatory levy imposed by the railways based on end-use was affecting competition in the sector.
The complaint was filed against the Railway Ministry and the Railway Board.
The Commission said that Railways was exercising the statutory functions when it reclassified and revised the rates and freights of commodities transported by railways in India.
“In the absence of any prima facie case of violations of the provisions of the Competition Act being made out on the basis of available material, the Commission is of the view that no interference is warranted by the Commission in this case,” it said.
Stating that Mineral Enterprises had not defined relevant markets, CCI said, as per the norms, the Railway Ministry and the Railway Board have the right to reclassify and revise the rates of commodities transported by railways in India.
However, in a dissenting order, CCI member R. Prasad said that prima facie, it can be concluded that unfair and discriminatory levy imposed by the Railways based on end use was affecting competition in the sector in an adverse manner.