CCI Placed Orders Counter to IRCTC
Posted on: 14/Mar/2014 4:35:56 PM
The Competition Commission of India (CCI) has ordered an inquiry against Indian Railways for its unfair practices linked to enforced sale of food to commuters on some trains and ticket booking.
This counts the second inquiry by the fair trade watchdog against the central government enterprises. Recently, CCI has come up with the complaint filed contrary to the Ministry of Railways and the Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
Cases filled include:
Passengers have been forcedly charged for catering facility on the Rajdhani express and other trains, as well as alleged unfair conditions in the sale of Rajdhani/Shatabdi/Duranto catering and travel services appears violating the competition norms.
Service charge imposed on e-tickets being non-refundable even if the passenger needed to cancel the ticket has also been in violation of competition rules.As per the order on February 28, the Commission has demanded its Director General (DG) to bring in a detailed investigation into the issue.
Transportation of passenger via railway in India seems to be the relevant market currently, the order said. And such market include ancillary segment like ticketing, catering on board and platform facilities, among others.
These grievances link to the behavior of the Indian Railway regarding the service rendered by its subsidiary IRCTC.
