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October 20, 2022

CCI Orders Probe Against State-Owned IREL For Unfair Biz Practices

Rahul Bhagat Financial Compliance, Financial Reporting CCI, competition commision of india, Indian Rare Earths Limited, investigation, IREL, order, probe

A complaint filed by Beach Mineral Producers Association (informant) based in Tamil Nadu resulted in passing the order. The company was practicing unfair pricing beach sand ilmenite, with various other issues. A detailed investigation would be conducted by the Director General (DG) being a probe arm of CCI for violating the provisions of Section 4(2)(a)(i) and 4(2)(a)(ii) of the Act

The Competition Commission of India (CCI) ordered a detailed probe against state-owned Indian Rare Earths Limited (IREL) on 18 October. Order is issued for allegedly abusing of dominant position in supplying and pricing of beach sand ilmenite in the nation. A complaint filed by Beach Mineral Producers Association (informant) based in Tamil Nadu resulted in passing the order. The association alleges that the company was practicing unfair pricing beach sand ilmenite, with various other issues.

Assessing the matter, the CCI considered ‘mining and supply of beach sand ilmenite in India’ as the prominent market. IREL conducts mining and production activities of various minerals, rare earths and chemicals.

In the order, CCI said that the opposite party’s (OP) conduct seems to have resulted in unfair/ discriminatory environment along with pricing for domestic consumers. This in prima facie is violation of the provisions of Section 4(2)(a)(i) and 4(2)(a)(ii) of the Act.

Also, the conduct appears in breach the of the provisions of Section 4(2)(c) of the Act due to denial of input to the informant’s members, CCI added.

The IREL (India) here is the OP and Section 4 of the Competition Act refers to abuse of dominant position. Considering the material available on record, the regulator said that the allegations levelled by the informant are substantial and violate Section 4.

As a consequence, following the order, a detailed investigation would be conducted by the Director General (DG) being a probe arm of CCI.

Ilmenite FeO-TiO2 is one of seven economically processed from beach sand. Along with it, the other popular six beach sand minerals include rutile, leucoxene, monazite, zircon, garnet and sillimanite. In order to derive products like titanium dioxide and titanium metal, ilmenite is processed.