Comparative Guides
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Results: 4 Answers
Merger Control
7.
Penalties and sanctions
7.1
If notification is mandatory, what sanctions may be imposed for failure to notify? In practice, does the relevant authority frequently impose sanctions for failure to notify?
 
India
Under Section 43(A) of the Competition Act, failure to notify a transaction or parts thereof may incur a fine of up to 1% of the worldwide turnover or asset value of the transaction, whichever is higher. The fine is imposed on the party responsible for filing. However, in practice, the Competition Commission of India (CCI) has generally imposed penalties ranging from INR 5 million to INR 10 million.

For more information about this answer please contact: P. Ram Kumar from Talwar Thakore & Associates
7.2
If there is a suspensory obligation, what sanctions may be imposed if the transaction closes while the review is ongoing?
 
India
There is a suspensory obligation and any violation of the same amounts to gun jumping. Though there is no specific provision relating to gun jumping under the Competition Act or the Combination Regulations, in practice, the CCI treats gun jumping as failure to notify a transaction or part thereof, or as a delay in notification under Section 43(A) of the Competition Act. The penalty under Section 43(A) may extend to 1% of the worldwide turnover or assets of the transaction, but the CCI typically imposes penalties ranging from INR 5 million to INR 10 million.

The CCI has found that pre-payment of consideration, irrespective of the nature of the payment (eg, by escrow, refundable) amounts to part-consummation of a transaction. The CCI has observed that such pre-payment may lead to a reduction of independence or competition between the parties prior to the CCI’s approval.

For more information about this answer please contact: P. Ram Kumar from Talwar Thakore & Associates
7.3
How is compliance with conditions of approval and sanctions monitored? What sanctions may be imposed for failure to comply?
 
India
Where the CCI grants conditional approval (ie, imposes behavioural or structural remedies) to a transaction, it can appoint an independent monitoring agency to oversee the parties’ compliance with the terms and conditions of the approval order. Failure to comply with the CCI’s order can result in the imposition of penalties under Section 43 of the Competition Act. The penalties under Section 43 of the Competition Act can extend to INR 0.1 million for each day of non-compliance up to a maximum of INR 10 million.

For more information about this answer please contact: P. Ram Kumar from Talwar Thakore & Associates