CCI Cracks Down on Ludhiana Firms Over Defence Procurement Collusion

The Competition Commission of India (CCI) has ordered two Ludhiana-based firms, KKK Mills and Sankeshwar Synthetics Pvt Ltd, to stop anti-competitive practices after they were found guilty of collusive bidding in defence procurement. The order underscores the CCI's commitment to maintaining fair market practices.

The Competition Commission of India (CCI) has taken decisive action against two firms located in Ludhiana, KKK Mills and Sankeshwar Synthetics Pvt Ltd, directing them to halt anti-competitive practices. This comes in the wake of findings that the firms engaged in collusive bidding related to a defence procurement tender for woollen underpants.

The case originated from a referral by the CP Cell of the Master General of Ordnance Branch, which invoked Section 19(1)(b) of the relevant Act. Evidence pointed to the firms' coordinated actions, as evidenced by identical pricing, timing of bid submissions, and similar past conduct, all indicative of collusion under Section 3(3)(d) combined with Section 3(1) of the Act.

In its order passed on January 2, 2026, under Section 27 of the Competition Act, 2002, the CCI not only deemed the partner of KKK Mills and the director of Sankeshwar Synthetics liable under Section 48 but also directed both companies to cease their anti-competitive conduct effectively immediately, reinforcing the regulator's role in ensuring fair competition.

(With inputs from agencies.)