Savlon Deal: ITC challenged this order in the NCLAT, saying that since the value of the acquisition deal was Rs 68.37 crore, it should be exempted from the requirement of giving notice.
ITC Penalty: The National Company Law Tribunal (NCLT) has set aside the order of the Competition Commission of India (CCI) imposing penalty on diversified company ITC. The commission was ordered to impose penalty on ITC for not giving information about the acquisition of ‘Savlon’ and ‘Shower to Shower’ brands. The company bought both these brands from Johnson & Johnson in the year 2017.
A fine of five lakh rupees is being imposed
The CCI, in an order dated December 11, 2017, had said that a penalty of five lakh rupees is being imposed on ITC for failing to provide information under sub-section two of Section-6 of the Competition Act. In this section, it has been made mandatory for companies to inform CCI within 30 days of takeover deals.
ITC challenged the order of the Competition Commission in the NCLAT, saying that since the value of the acquisition deal was Rs 68.37 crore, it should be exempted from the requirement of giving notice . Agreeing with this contention, a two-member bench of the Appellate Tribunal said in its April 27 order that no penalty was required to be imposed on ITC. Along with this, he canceled the order of the Competition Commission.
