CCI imposes over Rs 142 crore penalty on HP India, 21 resellers for cartelisation
New Delhi, July 14
The Competition Commission of India has imposed penalties totalling over Rs 142 crore on HP India and 21 of its resellers in two separate cases after finding them guilty of cartelisation and bid-rigging in the sale and supply of personal system products as well as printer consumables.
In two orders issued on July 13, 2026, under Section 27 of the Competition Act, 2002, the competition watchdog imposed a cumulative penalty of Rs 138.85 crore on HP India, while 21 resellers were collectively fined around Rs 3.52 crore. The Commission also directed HP India and the resellers to cease and desist from anti-competitive practices found to be in violation of Sections 3(3)(d) read with Section 3(1) of the Act.
The larger penalty relates to the personal system products segment, where the CCI imposed a fine of Rs 126.87 crore on HP India and around Rs 1.22 crore on five resellers. The Commission found that HP India dictated bid prices to its resellers and manipulated their participation in Government e-Marketplace (GeM) tenders by withholding authorisations, thereby influencing the bidding process to its advantage.
The five resellers found to have acted in collusion with HP India are Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare and Krishna Computers.
In a separate order concerning printer supplies products, including toner cartridges and other consumables used with print hardware, the CCI imposed an additional Rs 11.98 crore penalty on HP India and approximately Rs 2.30 crore on 16 Tier-2 resellers.
According to the Commission, the resellers engaged in seeking and submitting support or cover bids, while HP India played a central role in facilitating the cartel arrangement. The resellers named in the order include DD Enterprises, Ascent Information, Kaypee Enterprises, Britex Enterprises, Alankar Distributors, Vijay Stationery Mart, G R Enterprises, Perfect Innovative, Khandelwal Traders, A Square Technologies, Innovative Solutions, Pioneer Technologies, Delphi Infosolutions, Shakti Marketing, International Computer Resources and Arms Peripherals.
Both proceedings arose from lesser penalty applications filed by HP India under Section 46 of the Competition Act, disclosing the alleged cartel arrangements. Besides imposing penalties on the companies, the CCI also held officials of HP India and the concerned resellers liable under Section 48 of the Act and imposed monetary penalties on them. The orders were passed in suo-motu proceedings initiated by the Commission.
— ANI
Reader Comments
Finally some action against big corporations! HP has been overcharging for printer cartridges for years. Their ink is more expensive than gold per litre, and now we know why - they were rigging bids even in government purchases. The Rs 11.98 crore penalty on printer supplies is peanuts compared to their profits, but at least the message is clear. 🖨️💸
The interesting part is that HP India itself filed the lesser penalty application under Section 46. That means they were the whistleblower! So the cartel must have been quite serious if HP decided to come clean. But I wonder how high up the chain this goes - were senior executives aware? The CCI also penalised officials under Section 48, so some accountability at last. 🤔
As a small business owner who deals with computers, this is frustrating. These big companies and their resellers collude to keep prices high, while honest players like us can't compete. Good to see some action, but the GeM portal needs better checks to prevent such manipulation in the first place. The penalty of Rs 138 crore on HP India is significant but should be recovered from the executives responsible. 💼🔍
I'm actually surprised that HP India got a leniency benefit for revealing the cartel. That means they admitted to the cartel later, but what about the period before? Shouldn't there be compensation for the government departments that overpaid? The CCI order is welcome, but we need more transparency in how GeM tenders are awarded. Yaar, yeh sab kuchh political connections ke saath hota hai. 😤
J James A