CCI gets competition tribunal notice on Bhargava appeal

This, on an appeal challenging the clearance given to Rs 2,058 cr stake sale deal between Jet Airways and Etihad

The Competition Appellate Tribunal has issued a notice to the Competition Commission of India (CCI) on an appeal challenging the latter’s clearance to the Rs 2,058-crore stake sale deal between Jet Airways and Abu Dhabi-based Etihad.

Last Thursday, state-owned Air India’s former executive director, Jitender Bhargava, had appealed against the clearance. He said the latter had failed to assess how it would curb competition. CCI on the same day sought explanations from the two carriers to ascertain whether they failed to inform  about certain commercial pacts that could raise anti-competition concerns. The tribunal has issued notices to Jet also. The next hearing is on January 9.

Last month, Etihad concluded its investment deal in Mumbai-based Jet after CCI clearance. Anurag Goel, a commission member, had, however, given an opinion against the majority order.

Bhargava, in his appeal to the tribunal, has demanded the clearance be set aside, contending due process was not followed. The appeal said the commission should have conducted an enquiry, as the pact between the airlines was anti-competitive. He said if the proposed combination was allowed to be completed in its present form, passengers were likely to be deprived of airline choices on key routes, pay more and have fewer options on aircraft, timings and service quality.