CCI seeks explanations from Jet, Etihad


Having cleared Rs 2,060-crore deal between Jet AirwaysBSE -0.86 % and Etihad, fair trade watchdog CCI is seeking explanations from the two carriers to ascertain whether they failed to provide information on certain commercial pacts that could raise anti-competition concerns.

The deal, involving Abu Dhabi carrier Etihad’s purchase of 24 per cent stake in Naresh Goyal-led Jet Airways, was approved last month by the Competition Commission of India (CCI).

Meanwhile, this clearance has been challenged in the Competition Appellate Tribunal (Compat) by national carrier Air India’s former Executive Director Jitendra Bhargava, while BJP leader Subramanian Swamy has written to capital market regulator Sebi asking Etihad to be considered a ‘person acting in concert’ with Jet’s current promoters for this deal.
While Bhargava’s appeal was yet to be listed for hearing by the Compat, CCI Chairman Ashok Chawla today said that the two carriers have been issued show-cause notices on a separate issue relating to their certain commercial agreements.

While clearing the deal with majority vote, the CCI on November 12 had said in its order that the clearance would have no bearing on proceedings for possible penal action for non-furnishing of information by the parties. “The majority has already approved the merger but on whether some things happened before they filed the application, which could be a possible area for penalty being imposed, that we have issued a show cause notice,” Chawla said.

The notice was issued few days back and one hearing has already taken place. 

Read the full report here, Economic Times


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