A complaint filed by Tavoy Apparels and its group firms had alleged that even after one-time settlement with Union Bank of India for export credit loan taken from it, Export Credit Guarantee Corporation of India (ECGC) refused to delete the name of the complainants from the defaulters list known as 'Special Approval List'.
It was alleged by the complainant that ECGC had violated competition norms by imposing unfair and discriminatory conditions on the sale of services by banks to exporter companies through its agreement with various banks.
In an order dated February 12, the Competition Commission of India (CCI) said that "prima facie, no case of violation of the provisions of ...The (Competition) Act arises out against opposite party 1 (ECGC)".
Citing High Court rulings, the fair trade watchdog noted that inclusion of name of the petitioners in the 'Special Approval List' did not amount to blacklisting and it was neither arbitrary, nor illegal and there was no violation of the principles of natural justice.
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"There was nothing on record before the Commission to suggest that one-time settlement of the informant with OP2 (Union Bank) was approved by OP1 (ECGC)," CCI said.
The complainants had stated to the Commission that it had availed of export credit of about Rs 6.25 crores in 1995 from Union Bank and that the bank had taken insurance cover for its export credit portfolio from ECGC.
The complainants averred that as long as the exporter company and its group companies figured on the list, no bank would grant credit facility to any of them until the names were removed from that list.
ECGC is the national export credit insurer of India, functioning under the administrative control of Ministry of Commerce & Industry and is registered with the insurance regulator IRDA to provide non-life insurance.