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Sunday, July 21, 2024

Axis Bank receives a Rs. 40 lakh fine from CCI for purchasing a stake in CSC E-Government

<p>Axis Bank was fined Rs 40 lakh by the competition watchdog Competition Commission of India (CCI) for failing to inform the watchdog about the acquisition of a 9.91% interest in CSC e-Governance. The regulator said that the deal under examination, which included Axis Bank buying a 9.91% share in CSC e-Governance, was completed in November 2020.<img decoding=”async” class=”alignnone wp-image-136388″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon-750×563.png” alt=”theindiaprint.com axis bank receives a rs 40 lakh fine from cci for purchasing a stake in csc e government 1569502887 2702 11zon” width=”1649″ height=”1238″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon-750×563.png 750w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon-1024×768.png 1024w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon-768×576.png 768w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon-150×113.png 150w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-axis-bank-receives-a-rs-40-lakh-fine-from-cci-for-purchasing-a-stake-in-csc-e-government-1569502887-2702-11zon.png 1200w” sizes=”(max-width: 1649px) 100vw, 1649px” title=”Axis Bank receives a Rs. 40 lakh fine from CCI for purchasing a stake in CSC E-Government 12″></p>
<p>The ruling states that the private sector lender was supposed to notify the fair trade authority as part of the transaction, but it did not.</p>
<p>The regulator reportedly said, “It is apparent that the Axis Bank acquisition of stake in CSC e-Governance was neither solely as an investment nor can be considered to be in ordinary course of business,” according to the news agency PTI. It thus doesn’t matter whether or not the Axis-CSC e-Governance purchase resulted in the acquisition of control because it is not qualified for the benefits of Item 1 of Schedule I (combination regulation).</p>
<p>The CCI said that it is not necessary to determine whether or not the transaction led to the acquisition of control in this case. The panel learned that Axis Bank did not follow the rules.</p>
<p>To benefit from the combination regulations, the purchaser should not be a director and is not qualified to suggest a director. The injunction also said that it should not take involved in the management or operations of the company whose shares or voting rights were being purchased.</p>
<p>According to PTI, Axis Bank has 60 days from the date of the order to pay the fee. “The Competition Commission of India (“CCI”) vide its letter dated August 17, 2023, has imposed a penalty amounting to Rs. 40 lakhs under Section 43A of Competition Act, 2002,” Axis Bank said in an exchange statement on August 18.</p>
<p>The Electronics and Information Technology Ministry created CSC e-Governance Services India Ltd as a special-purpose company to manage the common services center program’s implementation.</p>
<p>On Friday, Axis Bank’s shares ended the day 0.64% higher at Rs 942.50 a share.</p>

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