NCLAT Upholds CCI's Verdict on Cartelisation in UP Soil Testing Tenders

The National Company Law Appellate Tribunal (NCLAT) has confirmed the Competition Commission of India's (CCI) ruling against three firms involved in bid rigging for soil testing tenders in the state of Uttar Pradesh in 2018.

The CCI found Austere Systems, Toyfort, and Fimo Infosolutions guilty of concerted efforts to manipulate bids in Meerut and Jhansi tenders, using business and familial ties to ensure that Austere Systems secured the contracts.

The NCLAT upheld the CCI's decision to impose a penalty of 5% of the firms' average turnover for three fiscal years, citing direct evidence from documents and individual conduct. The tribunal identified a collusive agreement between Yash Solutions and Austere Systems to geographically allocate tender areas.

(With inputs from agencies.)