OREANDA-NEWS. December 05, 2011. The Courts of three Instances confirmed validity of the fine imposed by the Office of the Federal Antimonopoly Service in the Rostov region (Rostov OFAS Russia) upon “CaspTransForm” Dredging Company” Ltd. and “Azovmorput” Federal State Unitary Enterprise for concerted actions in course of dredging works carried out to restore project parameters of Taganrog access canal and Taganrog port water area, reported the press-centre of FAS Russia.

In 2009, “CaspTransForm” Dredging Company” Ltd. and “Azovmorput” Federal State Unitary Enterprise concluded an agreement, according to which when “CaspTransForm” Dredging Company” Ltd. were announced the tender winner and signed the government contract, “CaspTransForm” Ltd. would assign some of the works to “Azovmorput” Federal State Unitary Enterprise at a lower price.

“Azovmorput” Federal State Unitary Enterprise was prepared to carry out works for “CaspTransForm” Ltd. at 100 Rubles per 1 cubic meter of excavated soil. In the tender documentation, “CaspTransForm” Ltd. specified the price nearly at 140 Rubles per 1 cubic meter. If “Azovmorput” were to participate in the tender, as it did before 2009, the contract price would have been much lower. Therefore, the agreement between the two entities was aimed at fixing high price for dredging works as by the time of signing the contract “CaspTransForm” Ltd. remained the only bidder for the government contract.

Rostov OFAS Russia found that the companies violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”.

The agreement enabled “CaspTransForm” Dredging Company” Ltd. to gain an additional income – over 9 million Rubles – that Rostov OFAS Russia ordered to transfer to the federal budget.

Rostov Regional Arbitration Court, the 15th Arbitration Appeal Court and the Federal Arbitration Court of the North Caucasus District confirmed validity of the determination issued by the antimonopoly body.

“CaspTransForm” Ltd. did not voluntarily transfer that unlawfully obtained income to the federal budget, and Rostov OFAS Russia filed a lawsuit to recover the funds at the place of the violator’s registration – to Astrakhan Regional Arbitration Court. The Court partly allowed the claim of the antimonopoly body and recovered the net profit under the contract rather than the income.

On 1st August 2011, the 12th Arbitration Appeal Court reversed the judgment of the Court of First Instance and ordered “CaspTransForm” Ltd. to transfer the unlawfully obtained income to the federal budget to the full. On 22nd November 2011, the Federal Arbitration Court of Povolzhie District upheld the ruling of the Appeal Court.

“CaspTransForm” Dredging Company” Ltd. not only failed to transfer the illegally gained income to the budget but continued the works. Taganrog Transport Prosecutor’s Office carried out its own investigation and gave us documents that showed even higher income obtained by the dredging company from violating the antimonopoly law – over 32 million Rubles. Rostov OFAS Russia also ordered the company to transfer this sum to the federal budget. In April 2011 the Federal Arbitration Court of the North Caucasus District pronounced legitimacy of this determination and Astrakhan Regional Arbitration Court allowed the claim”, commented the Head of Rostov OFAS Russia, Mr. Vadim Korneev.