Shardul Amarchand Mangaldas & Co. Successfully Gets Reduction of Penalty of More than INR 1200 Crores for Coal India

Shardul Amarchand Mangaldas & Co. (SAM & Co) acted as the legal advisor to Coal India Limited and its subsidiaries, in the matter involving imposition of a fine on CCI of INR 1773. The Competition Appellate Tribunal (COMPAT) had set aside the order of the CCI imposing a fine on CIL, as well as two related orders and has remitted the matters back to the CCI for fresh consideration.

The CCI in its order has stated that even though CIL enjoys operational commercial freedom, its conduct is constrained by directions received from various stakeholders including Ministry of Power, Ministry of Coal, CEA etc., all of whom exert influence and are involved in making decisions that impact various aspects of CIL's business. Keeping in mind the continuous steps taken by CIL in resolving issues with stakeholders, the CCI has drastically reduced the penalty amount to INR 591.01 Crores as opposed to a previous amount of INR 1773 Crores. This is for the first time that the CCI has reduced penalty in a case of remand.

The Shardul Amarchand Mangaldas & Co. Team was led by Ms. Pallavi Shroff, Regional Managing Partner and included Harman Singh Sandhu, Partner, Yaman Verma, Principal Associate, Toshit Shandilya, Associate, and Gauri Mehta, Associate all from the Competition Law Practice. Shardul Amarchand Mangaldas & Co. briefed Senior Advocate Ramji Srinivasan for this case.

In December 2013, the CCI, further to complaints filed by Maharashtra State Power Generating Company and Gujarat State Electricity Corporation Limited had fined CIL INR 1773 crores for abusing its dominant position as a supplier of coal by imposing unfair and discriminatory conditions in its fuel supply agreements with various customersand directed CIL to cease and desist from its unfair conduct and modify the terms of its agreements.

About Shardul Amarchand Mangaldas & Co.

Founded in 2015, Shardul Amarchand Mangaldas & Co., is one of India’s leading law firms rated by International organisations, law directories and professional journals. As a full service law firm, it is renowned in the business community for its ability to enable business, its innovative solutions, its responsiveness and collaboration with its clients. The Firm continues its journey as “a young and wise firm” with a legacy of 100 years.

The Firm has over 430 lawyers, including 89 Partners, offering legal services through its offices at New Delhi, Mumbai, Gurgaon, Ahmedabad, Kolkata, Bangalore and Chennai.