CCI Rules on Kerala’s Priyadarshini Scheme Complaint
The Competition Commission of India (CCI) has rejected a complaint filed by private bus operators challenging the Priyadarshini Scheme in Kerala. This scheme, a state initiative, offers free bus travel for women and transgender individuals using Kerala State Road Transport Corporation (KSRTC) services. The CCI determined that such a government-funded welfare program does not typically fall under competition law scrutiny, even if it places private operators at a commercial disadvantage.
Bench Decision
The decision was handed down by a bench consisting of CCI Chairperson Ravneet Kaur and members Sweta Kakkad and Deepak Anurag, on September 8. “The formulation and implementation of a welfare scheme by the Government, aimed at public welfare, would not ordinarily invite scrutiny under the Act,” stated the CCI. The Commission emphasized that any differential impact on private operators resulting from such schemes does not constitute a violation of the Competition Act.
Complaint Details
The complaint was submitted by two private stage carriage operators in Kerala, accusing the State government and KSRTC of abusing their dominant position under Section 4 of the Competition Act. One operator runs 18 buses on routes such as Thrissur-Palakkad and Thrissur-Adat, while the other operates three buses on the Thrissur-Govindapuram and Thrissur-Kozhinjampara routes. The Priyadarshini Scheme, launched in June 2026 under the Indira Guarantee program, aims to enhance mobility, employment opportunities, and socio-economic empowerment for women.
Operators’ Concerns
The operators argued that the scheme caused a significant shift of women passengers from private to KSRTC buses, leading to reduced passenger volumes and revenue for private operators. They claimed that this situation rendered their operations commercially unviable, forcing service reductions or shutdowns. Furthermore, they alleged that these circumstances amounted to unfair discrimination and denial of market access under Section 4 of the Competition Act.
CCI’s Findings
The CCI pointed out that the state funds the cost of free travel under the scheme. “The fact that the scheme may influence passenger choice does not, by itself, establish that the OPs (private bus operators) have imposed an unfair or discriminatory condition upon private stage carriage operators or their passengers,” noted the CCI. The commission concluded that a change in passenger demand, even if it disadvantages private operators commercially, cannot be considered conduct intended to limit or restrict services.
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Market Access Allegations
Regarding the allegations of market access denial, the CCI clarified that private bus operators continue to function and compete for passengers within their permitted services. “The alleged loss of fare-paying passengers or reduction in revenues may, at best, indicate a commercial disadvantage arising from the implementation of a welfare Scheme,” the order stated.
Ultimately, the CCI found no prima facie case of abuse of dominance under Section 4 and dismissed the complaint.
