The Competition Commission of India (CCI) has directed two Ludhiana-based firms to immediately stop anti-competitive practices after finding them guilty of collusive bidding in a defence procurement tender.

The order followed a reference filed by the Competition and Procurement (CP) Cell of the Master General of Ordnance Branch, Directorate General of Ordnance Services, under Section 19(1)(b) of the Competition Act, 2002. The reference alleged cartelisation in the tender floated for the procurement of woollen underpants for defence forces.

The firms involved—KKK Mills and Sankeshwar Synthetics Pvt Ltd—were accused of entering into an agreement that resulted in bid rigging. After examining the evidence, the CCI concluded that the companies had indulged in concerted action, violating competition norms.

According to the regulator, identical pricing in quotations, closely matched timing of submission of financial and commercial bids, and a pattern of similar conduct in the past clearly indicated collusive behaviour. The Commission held that such actions violated Section 3(3)(d) read with Section 3(1) of the Act, which prohibits bid rigging and cartelisation.

KKK Mills operates as a partnership firm, while Sankeshwar Synthetics is a private limited company. The CCI further ruled that the partner of KKK Mills and the director of Sankeshwar Synthetics were personally liable under Section 48 of the Act for their role in the violation.

The order, passed on January 2, 2026, under Section 27 of the Act, directs both firms to cease and desist from engaging in any anti-competitive conduct in future defence procurement processes.