Case No. 26 of 2014. Case: P. Raja Vs The Regional Manager, Wipro GE Health Care. Competition Commision of India

Case NumberCase No. 26 of 2014
JudgesAshok Chawla, Chairperson, Anurag Goel, Member (AG), M.L. Tayal, Member (T), S.L. Bunker and Sudhir Mital, Members
IssueCompetition Act, 2002 - Sections 19(1)(a), 26(2), 4
Judgement DateJune 23, 2014
CourtCompetition Commision of India


Order under section 26(2) of the Competition Act, 2002

  1. The present information has been filed under section 19(1)(a) of the Competition Act, 2002 ('the Act') by Dr. P. Raja ('the informant') against The Regional Manager, Wipro GE Health Care, Bangalore ('the opposite party No. 1') and The General Manager, M/s. GE Health Care Private Limited, Chennai ('Opposite Party No. 2') alleging inter alia contravention of the provisions of section 4 of the Act.

  2. Informant is a registered medical practitioner and managing partner of M/s. P. P. Scans located at Palayapalayam, Erode, Tamil Nadu. Opposite Party No. 1 is a joint venture with equal voting rights between two renowned organisations M/s. Wipro Ltd. and M/s. General Electric Company of USA, and inter alia is engaged in the manufacturing and sale of ultrasound, CT scanners systems, etc. in India for global and regional markets. With an annual turnover of about Rs. 800/- Crores, it is stated to be India's largest medical equipment sales and service provider and is a market leader with unmatched distribution and service reach in South Asia. Opposite Party No. 1 is an associate company of Wipro and Opposite Party No. 2; thus, both are considered as Opposite Parties by the informant.

  3. The informant has stated that he wanted to open a diagnostic centre with all convenience under a single roof catering to the needs of patients. Hence, the informant had approached M/s. GE Capital Service India (GE CSI), a sister concern of Opposite Party No. 2, seeking loan to finance the purchase of the entire diagnostic equipments manufactured by Opposite Parties. The total value of the equipments purchased was around Rs. 3.75/- Crores along with one year CMC and AMC warrantee. The informant has further stated that several hidden and indirect terms were imposed by the Opposite Parties in connection with the purchase of medical equipment.

  4. The informant has stated that the M/s. GE Capital Service India released majority of the loan account (Rs. 2.92/- crores) in September 2011 itself and the informant started repaying the amount from that date whereas the said equipments were installed and started functioning only from November-December 2011. During the first three months, only the loan amount was repaid and the scan centre could not be started owing to delay in the supply of the said equipments.

  5. The informant has stated that the ultrasound equipment was delivered only after two months of the opening of...

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