OREANDA-NEWS. March 21, 2013.  The Arbitration Court of the Rostov Region supported the decision of the Office of the Federal Antimonopoly Service in the Rostov Region (Rostov OFAS Russia) abound bid-rigging collusion between “91-Rostov Column Convoy” Ltd., “21 Vek” Construction Company” Ltd. and “RSK” Ltd. at an auction for capital repair of No.5 Secondary School in Millerovo with the initial contract price – 108,924,700 Rubles.

The Commission of Rostov OFAS Russia investigated a complaint filed by a bidder and found that in the course of the electronic auction “RSK” Ltd. and “21 Vek” Construction Company” Ltd. offered damping contract prices: 84,455,376.5 Rubles and 85,000,000 Rubles accordingly. However, upon considering the second part of applications, the companies were not allowed to continue participating in the auction as their documents did not fit the requirements. “91-Rostov Column Convoy” Ltd. won the auction with the price bid at 93,700,000 Rubles.

The Commission of Rostov OFAS Russia proved that “RSK” Ltd. and “21 Vek” Construction Company” Ltd. had intentionally reduced the contract price so bona fide bidders would refuse to further take part in the auction. The companies also deliberately submitted documentation that failed to meet the auction requirements expecting their bids to be declined to the benefit of the third company. “91-Rostov Column Convoy” Ltd., in its turn, offered a price a bit lower than bona fide participants to make sure the company would be the auction winner.

As a result, the Commission of Rostov OFAS Russia found that “91-Rostov Column Convoy” Ltd., “21 Vek” Construction Company” Ltd. and “RSK” Ltd. violated the Deferral Law “On Protection of Competition” in the part of maintaining prices at an auction.

“RSK” Ltd. disagreed with the decision of Rostov OFAS Russia and filed a lawsuit to the Arbitration Court of the Rostov Region, which, however, dismissed the claim.

“The Court confirmed another so-called “ram” for price reduction at an auction, which will help us protect the interests of bona fide bidders. Recently a Cassation Court supported the decision of Rostov OFAS Russia regarding “Stroikov” Construction Company” Ltd., “RSK” Ltd. and “RosStroiContract” Construction-and-Production Firm” Ltd.”, commented Deputy Head of Rostov OFAS Russia, Natalia Kozhemyako.