Rajasthan Marudhara Gramin bank and State Bank of Bikaner and Jaipur
Case brief
What is this about?
The Competition Commission imposed a penalty of INR 1 lakh on Rajasthan Marudhara Gramin Bank and State Bank of Bikaner and Jaipur for failing to notify their Combination under Section 6 and consummating the merger before the statutory deadline under Section 43A.
What did the court decide?
Infringement attracted penalty under Section 43A of the Act and parties ordered to pay a penalty of INR 1,00,000/- within 60 days.
What the court decided
COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2016/02/377)
14.02.2017
Fair Competition For Greater Good
Notice given by Rajasthan Marudhara Gramin Bank and State Bank of Bikaner and Jaipur
Order under Section 43A of the Competition Act, 2002 (“Act”)
Introduction
- The Competition Commission of India (“ Commission ”), in its meeting held on 12.01.2015, took suo motu cognizance of amalgamation of Marudhara Gramin Bank (“ MGB ”) (sponsored by State Bank of Bikaner and Jaipur (“ SBBJ ”)) and Mewar Aanchalik Gramin Bank (“ MAGB ”) (sponsored by ICICI Bank (“ ICICI ”)) into Rajasthan Marudhara Gramin Bank (“ RMGB ”) and designation of SBBJ as the sole sponsor bank of RMGB (“ Combination ”). The Combination came into effect from 01.04.2014 vide a Gazette of India Notification dated 01.04.2014 issued by the Department of Financial Services, Ministry of Finance, Government of India under subsection (1) of Section 23A of the Regional Rural Banks Act, 1976 (“ RRB Act ”) (“ Notification ”).
- In order to ascertain notifiability of the Combination, the Commission, vide letters dated 20.03.2015 and 20.05.2015, directed RMGB to provide details of assets and turnover of MGB and MAGB for the financial years 2013-14 and 2014-15. The details were filed by RMGB vide its letter dated 28.05.2015.
Issues for consideration
3 issues framed by the court
Whether the failure to notify a Combination under Section 43A of the Act and consummating it before the expiry of statutory timelines attracts penalty.
Whether the decision on amalgamation taken by the Government under the RRB Act obliterates the duty of enterprises to notify the Commission.
Whether change in sponsor bank of a merged entity tantamount to change of control implies notifiability.
Parties & counsel
- applicant
Rajasthan Marudhara Gramin Bank
- applicant
State Bank of Bikaner and Jaipur
Coram
Competition Commission of India
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1 — this page
- Order 2
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