NCLAT stays CCI penalty on NTPC for non-disclosure on acquisition of Ratnagiri Gas & Power shares
NCLAT) has stayed a CCI order that imposed a penalty on state-owned power producer NTPC for not disclosing the acquisition of 35.47 per cent equity share capital in Ratnagiri Gas & Power Private Ltd. The Competition Commission of India on August 22, 2023, imposed a penalty of Rs 40 lakh on NTPC for non-disclosure of its acquisition of 35.47 per cent of the equity share capital in Ratnagiri Gas & Power Private Ltd (RGPPL).
This was challenged by NTPC before the NCLAT, which is an appellate authority over the orders passed by the Competition Commission of India (CCI).
A two-member bench directed to list the matter on February 27, 2024, for the next hearing on NTPC's appeal and stayed the operation of order passed by the Competition Commission of India (CCI).
«Till next date of hearing the operation of the impugned order dated 22.08.2023 passed by the CCI shall remained stayed,» said NCLAT passed earlier this week.
NCLAT directed CCI to file a reply over NTPC appeal within four weeks and rejoinder, if any by the power producer, to be filed within four weeks thereafter.
NTPC had acquired 35.47 per cent of the equity share capital of RGPPL without notification to the CCI, increasing its stake from 25.51 per cent to 60.98 per cent.
Later, CCI on October 27, 2022, issued a notice or failure to notify the transaction under combination regulation. CCI was of the opinion that the transaction in question was a notifiable transaction.
