Big insurance PSU firms fined Rs 671 crore for rigging bids in Kerela

Thursday, Jul 16, 2015,20:19 IST By metro vaartha A A A

New Delhi | In a severe punitive action, the Competition Commission of India has slapped a penalty of Rs 671.05 crore on major public sector insurance firms including National Insurance, New India Assurance and Oriental Insurance Company Limited for manipulating the bidding process for welfare schemes of the Kerela government.
The maximum of Rs 251.07 crore penalty has been imposed on New India Assurance Company Limited followed by National Insurance (Rs 162.80 crore), Oriental Insurance (Rs 100.56 crore) and United India Insurance (Rs 156.62 crore).
In its final order, CCI stated that the ?conduct of these companies has resulted in manipulation of the bidding process in contravention of the provisions (of  the law)?.
The case related to bid rigging in public procurement for social welfare schemes, the beneficiaries of which were BPL and poor families and as such the same was taken as an aggravating factor.
The PSU firms had manipulated the bidding process initiated by Government of Kerala for selecting insurance service provider for Rashtriya Swasthya Bima Yojna (RSBY) for the years 2010-11, 2011-12 and 2012-13.

Latest News