Competition panel slaps Rs 3 cr penalty on Tesco

Competition panel slaps Rs 3 cr penalty on Tesco

The Competition Commission of India (CCI) has slapped a penalty of Rs 3 crore on British retailer Tesco for delay in filing notice related to its purchase of 50 per cent stake in Tata Group firm Trent Hypermarket.

The fair trade watchdog, on May 22, had cleared the Tesco-Trent deal which is the first FDI transaction in multi- brand retail since the sector was opened up in 2012. The CCI, in an order dated May 27, has imposed a penalty of Rs 3 crore on Tesco Overseas Investments for delay in filing notice seeking approval for the deal.

A Tesco spokesperson could not be contacted for comments. Under the Competition Act, any person or enterprise, who or which proposes to enter into a combination, shall give notice to the Commission, disclosing the details of the proposed combination, “within thirty days of execution of any agreement or other document for acquisition”. As per the CCI, Tesco should have filed the notice seeking approval within 30 days of its application to the DIPP and FIPB.