Bid Rigging under Competition Law, 2002:

A Critical Analysis

SYNOPSIS SUBMITTED
BY
AMANRAJ SINGH CHADHA
A3268615027
LLM (CB&IL) 2015-16

AMITY LAW SCHOOL

AMITY UNIVERSITY, NOIDA

INTRODUCTION
The explanation to sub-section (3) of Section 3, of the Act defines bid rigging
as any agreement, between enterprises or persons referred to in sub-section
(3) engaged in identical or similar production or trading of goods or provision of
services, which has the effect of eliminating or reducing competition for bids or
adversely affecting or manipulating the process for bidding.
Bid rigging takes place when bidders collude and keep the bid amount at a predetermined level. Such pre-determination is by way of intentional manipulation
by the members of the bidding group. Bidders could be actual or potential
ones, but they collude and act in concert. Bid rigging may take many forms,
but most bid rigging conspiracies usually fall into one or more different types of
categories.
Bid rigging is a widely known term across the world. Bidding, as a practice, is
intended to enable the procurement of goods or services on the most favourable
terms and conditions. But the objective of securing the most favourable prices
and conditions may be negated if the prospective bidders collude or act in
concert. Such collusive bidding called bid rigging contravenes the very
purpose of inviting tenders and is inherently anticompetitive.
If bid rigging takes place in Government tenders, it is likely to have severe
adverse effects on its purchases and on cost effectiveness of public spending
and wastes public resources. It is therefore important that the procurement
process is highly competitive and not affected by practices such as collusion,
bid rigging, fraud and corruption. All over the world, bid rigging or collusive
bidding is treated with severity in the law as reflected by the presumptive
approach.

RESEARCH METHODOLOGY
The research is being conducted using doctrinal means of conducting the
research wherein the various data collection tools and data sources will be
analyzed to reach to the conclusion of the research.

SCHEME OF TERM PAPER

Introduction
What is Bid Rigging
Bid Rigging is Anti-Competitive
Forms of Bid Rigging
Conclusion

OBJECTIVES

Discuss the role of Competition commission of India

Analysis of the provisions mentioned the Act
Explain Bid Rigging
Identifying the forms of Bid Rigging