The Competition Commission has ordered an investigation against Indian Railways and its arm IRCTC for alleged unfair practices related to compulsory sale of food to travellers on some trains and ticket booking.
This is the second major probe by the fair trade watchdog against a central government enterprise, after Coal India.
The Competition Commission of India's (CCI) latest investigation came on a complaint filed against the Ministry of Railways and the Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
The probe would also look into the possible role of individuals related to the matter.
"The Commission is of the opinion that prima facie, a case of contravention of the provisions of the (Competition) Act is made out against IR (Indian Railways) and IRCTC," the watchdog said in an order made public today.
Passengers being compulsory charged for catering facility on the Rajdhani and other trains, as well as alleged unfair conditions in the sale of Rajdhani/Shatabdi/Duranto catering and travel services "prima facie" appear to be violating competition norms, CCI said.
"Service charge imposed on e-tickets being non-refundable even if the passenger needed to cancel the ticket; e-wallet scheme with unreasonable conditions appear to be some of their conducts" which have also been found to be prima facie in violation of competition rules.
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