AGL was found abusive in imposing unfair conditions upon the buyers under Gas Supply Agreement (GSA) for certain clauses like -
(a) "Billing and Payment" which exempts AGL from the interest on an amount which becomes payable or reimbursable by it;
(b) "Force Majeure" which gives sole discretion to AGL to accept or reject request of customers for force majeure;
(c) "Shutdown" wherein buyer is obliged to meet its Minimum Guaranteed Off-take even in the event of emergency shutdown calling for complete or partial off-take of gas;
were found to be in contravention of Section 4(2)(a)(i) of the Act. CCI accordingly directed AGL to cease and desist from indulging in any such kind of activity and modification of GSA. Monetary penalty is also imposed at the rate of 4% of the average turnover of preceding three years which is equivalent to Rs. 2567.2764 Lakhs.