The Competition Commission of India approved the proposed share acquisition by Reco Diamond Private Limited in DLF Cyber City Developers Limited. The Commission found the combination unlikely to cause an appreciable adverse effect on competition in Indian real estate markets.
Approval of the Proposed Combination under Section 31(1) of the Competition Act, 2002.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2017/09/527)
Dated: 03.11.2017
Notice under Section 6 (2) of the Competition Act, 2002 given by Reco Diamond Private Limited
CORAM:
Mr. Devender Kumar Sikri Chairperson Mr. S. L. Bunker Member Mr. Sudhir Mital Member Mr. Augustine Peter Member Mr. U. C. Nahta Member Mr. G. P. Mittal Member
Legal Representatives of the parties: M/s AZB & Partners
Order under Section 31 (1) of the Competition Act, 2002
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Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2017/09/527)
1 On a fully diluted basis, Reco Diamond will acquire 31.98% of the total shareholding of DCCDL on the closing date. In the event certain terms and conditions under the SPSHA are not met, then the SPSHA provides for a potential stake adjustment and increase in Reco Diamond’s shareholding by a maximum of 0.58% of paid-up share capital of DCCDL, at 3 years from closing, leading to an increase in total shareholding of Reco Diamond of up to 33.92 percent.
Page 2 of 4
Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2017/09/527)
company with limited liability under the laws of Singapore, holds real estate investments made on behalf of Government of Singapore.
Page 3 of 4
Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2017/09/527)
Page 4 of 4
3 issues framed by the court
Whether the proposed combination between Reco Diamond Private Limited and DLF Cyber City Developers Limited is likely to cause an appreciable adverse effect on competition.
Whether the future transfer of SEZ rights to DCCDL Group would alter competition dynamics in the real estate market.
Whether the proposed acquisition with external funding falls within permitted foreign direct investment.
3 provisions across 1 enactments
Competition Commission of India
Reco Diamond Private Limited
DLF Cyber City Developers Limited
Devender Kumar Sikri
S. L. Bunker
Sudhir Mital
Augustine Peter
U. C. Nahta
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
