The Bangladesh Competition Commission has imposed an administrative financial penalty of Tk32.44 crore on Shabnam Vegetable Oil Industries Ltd, a concern of TK Group, over allegations of market manipulation and supply irregularities in the edible oil sector.

The information was disclosed in a press release signed by the commission secretary, Mahbubur Rahman Khan, on Thursday.

According to the commission’s verdict, the penalty was determined based on the company’s average annual turnover as reflected in its audited financial statements for fiscal years 2019-20, 2020-21, and 2021-22.

Considering that this was the company’s first offence, the commission imposed the fine under Section 20 of the Competition Act, 2012, along with specific directives.

The company has been instructed to pay the fine within 30 working days of the final order. However, under the provisions of the law, it may file an appeal or seek a review of the decision.

The Competition Commission said that in February and March 2022, the Directorate of National Consumers’ Right Protection conducted an investigation into the causes of rising edible oil prices.

The investigation found evidence against eight companies for creating supply shortages and engaging in irregularities related to supply orders (SOs), which contributed to price increases.

Following the findings, the Bangladesh Competition Commission formed a three-member inquiry committee.

Based on its own investigation and a report from the consumers’ rights authorities, the commission decided to file a case against Shabnam Vegetable Oil Industries Ltd under the Competition Act, 2012.

According to the charges, Article 9(3) of the Essential Commodities Marketing and Distributor Appointment Order, 2011, stipulates that a supply order remains valid for a maximum of 15 days and cannot be extended under any circumstances. It also prohibits the supply of goods against expired supply orders.

However, the company was found to have supplied products using expired SOs, an act considered anti-competitive conduct.

In 2022, a case was filed against the company under the Competition Act, 2012, over allegations of collusion with other firms to artificially raise edible oil prices and manipulate production, supply, and market conditions.