India to Probe CBM Player GEECL for Unfair Business Practices

Competition Commission of India (CCI) has ordered a probe against Great Eastern Energy Corp (GEECL) for allegedly indulging in unfair business practices with respect to sale of coal bed methane gas to entities in the state of West Bengal, news agency Press Trust of India reported. 

The probe has been ordered after CCI found prima facie violation of competition norms.

On a careful perusal of the allegations and the terms of Gas Sale and Purchase Agreement (GSPA), the Competition Commission of India (CCI) said it is of the "prima facie" opinion that the "impugned terms appear to be tilted in favour of the seller and against the buyer", Press Trust reported. 

"Thus, prima facie the opposite party (Great Eastern Energy) appears to have contravened the provisions of section 4 of the (Competition) Act," the order said.

It was alleged that GEECL, which is in dominant position in the relevant market of supply and distribution of CBM gas in Asansol- Raniganj- Durgapur belt, abused its dominant position by imposing "unconscionable terms and conditions" in Gas Sale and Purchase Agreement (GSPA).