Industry leaders raise issue of lack of ‘quorum’ in CCI amid pendency of cases
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Significantly, there is no chairman in CCI for more than two months. CCI approval is required for mergers and acquisitions above a certain threshold value. These deals are regulated under sections five and six of the Competition Act, 2022.
As various mergers and acquisition deals await the nod from the Competition Commission of India (CCI), industry players have raised the issue of lack of ‘quorum’ at the competition regulator. Industry participants have sought early resolution of the issue. Significantly, there is no chairman in CCI for more than two months. CCI approval is required for mergers and acquisitions above a certain threshold value. These deals are regulated under sections five and six of the Competition Act, 2022.
The regulator needs a quorum of three members to approve merger deals. However, after the retirement of its Chairman Ashok Kumar Gupta on October 25, 2022, only two members are left, due to which the CCI lacks a quorum. Various quarters in the industry have demanded that the status quo be removed till the appointment of a new chairman, so that there is no delay in approving merger deals due to lack of quorum. These concerns have been taken up with the Ministry of Corporate Affairs, which is the administrative ministry for the CCI.
Avantika Kakkar, Partner (Head- Competition Law) at leading law firm Cyril Amarchand Mangaldas has written to the Ministry on the issue of lack of quorum in CCI. He said that a total of 15 cases are pending for review by the CCI, which include several global transactions under the Insolvency and Bankruptcy Code. He said that this delay is affecting many stakeholders negatively.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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