New Delhi, January 2, 2026 — The Competition Commission of India (CCI) has found two Ludhiana-based textile manufacturers guilty of collusive bidding in a defence procurement tender for woollen underpants, concluding that the companies coordinated their bids in violation of Indian competition law. The authority, however, decided not to impose monetary penalties, opting instead for cease-and-desist orders.
The case arose from a reference by the Directorate General of Ordnance Services, which flagged suspected bid-rigging in a tender for the supply of woollen underpants to the armed forces. The initial tender, issued in July 2019, was cancelled after both bidders — KKK Mills and Sankeshwar Synthetics — quoted an identical price of INR 127.90. A re-tender issued in November 2020 raised further concerns when the same firms again submitted identical bids, this time at INR 122.75.
Following an investigation, the CCI agreed with the findings of its investigative arm that the identical pricing in two separate tenders, combined with near-simultaneous bid submissions, could not be explained by coincidence or market conditions alone. The Commission said the conduct went beyond mere price parallelism and pointed to a pre-arranged understanding between the companies.
Evidence of coordination
The CCI relied on multiple factors to establish collusion, including repeated identical pricing to two decimal places, coordinated timing of bid submissions and extensive email, call-record and transaction evidence showing contact between the firms before and after bid submission. The investigation also uncovered links with a related entity, Jainson Hosiery Industries, which acted as a communication conduit between the bidders in multiple government tenders.
The Commission rejected arguments that the market was an oligopsony dominated by the Ministry of Defence, noting that the firms could supply similar products to other government agencies and private buyers. It also dismissed claims that the tender’s structure as a rate contract neutralised any potential harm.
Individuals held responsible
The CCI also held two individuals liable for their role in the collusive conduct: a partner of KKK Mills and a director of Sankeshwar Synthetics. The authority found that both were actively involved in coordinating bids and tender-related communications. It further criticised misleading statements made during the investigation and attempts to conceal evidence.
No fines imposed
Despite confirming the infringement, the Commission chose not to levy financial penalties. It cited difficulties in determining relevant turnover for the specific product, the cancelled status of the tender, and the firms’ status as micro, small and medium enterprises. Instead, the CCI issued cease-and-desist orders, warning that any repeat conduct would be treated as recidivism and could attract harsher consequences.
The decision underscores the CCI’s view that repeated identical bidding, supported by evidence of coordination, can amount to unlawful bid rigging even where no contract is ultimately awarded.
Source: https://www.cci.gov.in/antitrust/orders/details/1217/0
