TAAI had alleged that the DoE’s OM, which required government employees to use two travel agencies (Balmer Lawrie and Co and Ashok Travels) for all official travel, violated the Competition Act 2002.

TAAI had challenged two circulars issued in 2017 and 2018, in addition to the 2006 memorandum.

The first clarification had rejected a request from officials to relax the conditions, which limited their choice to these two agencies. The second clarification requires that government employees must seek permission from the Center if they require relaxation in OM conditions.

TAAI alleged that the DoE’s decision making it mandatory to purchase air tickets only through Balmer Lawrie and Ashok Travels had an adverse effect on competition in the market for travel agent services for booking of plane tickets in India.

In May 2020, the CCI rejected this plea, holding that the DoE cannot be considered an “undertaking” within the meaning of Section 2(h) of the Competition Act, as its principal activity was not business but policy development. Additionally, the DoE did not enter into any agreements with these travel agencies, but only disseminated internal communications to government employees. It is therefore not a commercial activity falling under the Competition Act, the Commission concluded.