CCI Needs to Re­spond within 21 Days CJI Favours Work On PM’s Ad­vice, 22 States In Sum­mer Break Adopt Awarded Projects

Some judges may hear cases dur­ing hol­i­days where lawyers are will­ing to ap­pear Ac­tion Plans for im­ple­men­ta­tion of re­ports of GoS

The Economic Times - - Pure Pol­i­tics -

Dalmia al­leged that In­dian com­pe­ti­tion laws do not em­power CCI to ac­cept an al­ter­na­tive pro­posal from La­farge In­dia al­low­ing it to sell its en­tire as­set port­fo­lio, just 11 months af­ter is­su­ing an ini­tial or­der al­low­ing only a par­tial sale.

The mat­ter is ex­pected to be­come even more con­tentious af­ter CCI barred po­ten­tial suitor Bar­ing Pri­vate Equity Asia from mak­ing a for­mi­da­ble bid along with con­sor­tium part­ners Black­stone and Cana­dian pen­sion gi­ant CP­PIB. CCI cited con­flict of in­ter­est, said three peo­ple aware of the New de­vel­op­ment.InDelhi: a bid to lessen pen­dency,Th­e­seChief­sourcesJus­ticeaddedof In­diathattheTS Thaku­ranti-trust­to­dayreg­u­la­tor­saidtheal­soSupre­me­blocked CourtKKR,an­oth­er­would­hearpri­va­teur­gen­te­quity­mat­ters­budy­ou­turi­group,ng­sufrom­m­mepar­tic­i­pat­in­gr­va­ca­tion andinth­easked­com­pet­i­tivethe­bar­body­bid­ding­tochalkprooutcess.theKKRmech­a­nism.was­barred for be­ing the“We­largest­can­sitin­sti­tu­tion­al­dur­ingth­e­sum­mer­share­va­ca­tion­hold­er­wit­hand hear8.5% ur­gentstake in­mat­ter­sDa­land­miaI Bharat,wouldtalk­theto judges,”list­ed­holdingabench, head­ed­com­pa­nyby the­oftheCJI,Dalmi­a­said­whenGroup,anad­vo­cate­which men­tioned­has­size­ablea mat­ter­ce­mentinope-the morn­ingra­tionsin­seekingeast­er­nur­gen­tIn­dia,list­ing.just like“T La­farge.heSupCCIre­me­hadCear­lier­ourt bar-Bar As­so­ci­a­tionredany­play­er­will­with­wel­comeoverit,”5%sen-of ior­to­ta­l­ad­vo­cate­in­stalledand­ca­pac­i­tySCBAPres­i­dentinthereDushyantl­e­vant­geo­graph­icDave,whomar­ket­wasp­re­sent­from in­bid­dingth­e­court­room­forLa­farge’sin­con­nec­tio­nunit­sand with­Dalmi­a­some­hadother­al­ready­case, breached­promptly re­sponded.that­ceil­ing. KKR’s Dalmia in­vest­men­tThebench,would­which­makeal­so­com­prised­itare­laJus­ticeted­par­tyR Banu­mathi,as­po­ten­tial said­in­vestors­there are va­ca­tion­ex­pect­ed­benchesto­beat­toan­hear­arm’sand de­cide­length as­cas­es­per norm­san­dad­di­tion­ally,on­reg­u­la­some­tionof­judgescom­bi­na­tion­s­may­berequest­e­dun­der­theto Com­pe­ti­tion Act of 2002, said a se­nior CCI of­fi­cial.

Sources said that fol­low­ing Dalmia’s move, some of the ag­grieved PE play­ers may also ex­plore op­tions to ap­peal against CCI’s de­ci­sion to block them. When con­tacted, spokesper­sons for both KKR and Bar­ing Asia de­clined to com­ment on the mat­ter.

A La­farge spokesper­son said: “We can­not com­ment with re­gards to the pro­ceed­ings. La­fargeHol­cim re­mains fully com­mit­ted to dis­pose its en­tire in­ter­est in La­farge In­dia in com­pli­ance with the CCI or­der.”

THE DALMIA CHAL­LENGE

Dalmia’s le­gal coun­sel said CCI can rat­ify the new deal only af­ter a fresh no­tice is filed by La­farge list­ing de­tails of the pro­posed buyer. “The orig­i­nal or­der pre­scrib­ing di­vest­ment of some as­sets in east In­dia (of around 5.15 mil­lion tonnes) was a pre­con­di­tion to al­low­ing the In­dian leg of the global merger be­tween two com­pa­nies (read La­farge and Hol­cim). That process did not go through. Then, one party de­cided it wanted to sell itssi­ten­tire­dur­ingstakethe­va­ca­tion­inIn­dia and­forac­cord-gota sup­ple­men­tary­in­greg­u­lar­hearingorder­fromin­mat­ter­sCCI,” GRwhereBha­tia,lawyerspart­ner,arewil­l­ingLuthrato &apLuthra­pearand­lawar­gue.of­fices, told ET. LuthraIn& longLuthrava­ca­tions,is­rep­re­sent­inglawyers­doDal-not mi­a­gooutCe­ment­fortheBhara­ten­tire pe­riod,inthe case.it­said “andNow,askedifthe com­pa­nyDave­tochalk­wantsout­tosell­moits­dal­i­tiesen­tire forstake,hear­ingth­eyshould­of­cas­es­file­dur-a fresh­ing­va­ca­tions.no­tice­and in­form who the ac­quir­erTh­e­sum­meris.It’sva­ca­tio­nanew­trans­ac­tionoftheapex al­to­gether.court­this Howyear is­could­sched­uledCCIal­lowfrom it?”May­said16­toBha­tia.June28.

CCI will have to re­spond within arm by the mid­dle of 2015. Sub­se­hap­pen­ing as we speak?” the sour21 days with its views and de­fend quently, it signed an agree­ment ce said. its ju­ris­dic­tion. on June 16, 2015, to buy out the PE Even the last time around, CCI

The move to sell all of La­farge in­vestor by pay­ing 270 mil­lion had ob­jected to Bar­ing’s bid duIn­dia’s as­sets was kicked off last ($303.3 mil­lion). ring the fi­nal stages of ne­go­ti­a­month af­ter an ear­lier deal to But CCI feels that since this tions. This time, too, it forced the sell two ce­ment units to Birla trans­ac­tion was con­sum­mated afPE fund to pull out of the con­sorCorp in a .₹ 5,000-crore trans­ac­ter it had is­sued its orig­i­nal or­der tium just be­fore ini­tial of­fers we­tion fell through due to re­stri­con the La­farge as­set sales in re go­ing in af­ter Bar­ing sought a tions Ne­won trans­fer­AllofDelhi: 14mines.good­gov­ern-InMarch, Bar­ing Asia will be con­si­le­gal clar­i­fi­ca­tion. With Bar­ing March,an­cetheini­tia­tivesLokSabha passed­ofthe anstates­dered an ex­ist­ing in­vestor. out of the con­sor­tium, only amend­mentaward­ed­to­bythePMMi­nesNaren­dra&Mi-Modi“It con­sid­ers Bar­ing to be an in­Black­stone and CP­PIB went ahen­er­al­slastDevel­op­men­tyearhave­beenAct,repli­cat­ed­whichby 22sider, and once it asked all sharead with a joint of­fer com­pet­ing will makeother state­sit­pos­si­ble­anda Union­for­compa-Ter­ri­tory,hold­ers of La­farge In­dia to exit with a clutch of global and domes­nies towith­trans­fer­Pun­jab­minead­optin­gas­set­sGu­jarat’slin-the as­sets, it in­cluded the PE tic ce­ment play­ers and fi­nan­cial ked to­canal-ce­ment­top so­larunitspan­elatthe­p­ro­ject­time for­fund too. So Bar­ing can­not re-en­in­vestors. of sale.gen­er­at­ingWhile elec­tric­ity.thea­mend­ment ter the race for the same set of as“CCI’s views are not con­sis­tent has beenOn Civilun­derSer­vices­dis­cus­sionDay,for­which­sets a year down the line but with the pre­vail­ing reg­u­la­tory en­the past­will be­fe­wheld­months,overt­woLa­farge-daysnext­through a new ve­hi­cle. CCI felt it vi­ron­ment,” said another of­fi­cial. Hol­cimweek,de­cid­edPMwillto re­lease­di­vestitsa­booki­non­could po­ten­tially in­flu­ence the “Pre­vi­ous at­tempts to sell the ter­est­thein La­farg­erepli­ca­tionIn­diaofto­lasthas­tenyear’ssale and fi­nal price by act­ing in units got aborted only be­cause the clo­sureaward­so­f­a­sitswell­glob­al­asa book­merg­eron thecol­lu­sion with the seller and jeoCCI wanted in­di­vid­ual as­set sales in theAc­tion­coun­try.Plan­sOn­forFe­bru­ary­im­ple­men­ta­tion2,par­dise the ex­er­cise,” said a se­and that was im­pos­si­ble with­out CCI ap­proved­ofRe­pothert­sre­vised­ofG rplan­soup oniorf le­gal of­fi­cial di­rectly in­volthe mine trans­fers.” throughSec­re­tariesasup­ple­men­tary(GoS)whichorder.hadved in the mat­ter on con­di­tion of But the is­sue has po­larised the The reg­u­la­tor’sbeense­tu­po­rig­i­nal­byPM. di­recti-Ni­tiAayo­ganonymity. “The reg­u­la­tor coin­dus­try and some ar­gue that ve hadCEO­comeAmitab­hal­most Kan­tayear­willago­make—ulda have taken a more prag­matic the reg­u­la­tor’s in­ter­ven­tion was on March­spe­cial30,pre­sen­ta­tion2015. on the sta-view but chose not to. Of late, a fair call. “The new or­der is just tus of im­ple­men­ta­tion of GoSCCI has be­come hy­per-con­ser­vaan ex­ten­sion of the pre­vi­ous re­ports. While PM will speak at­tive,” he added. one, so if they were a share­holCCI con­sid­eredtheevent both­onAprilKKR21,andRail­wayBa-Sources close to Bar­ing Asia also der at that point, they would har­ing asMin­is­ter­re­lated orSuresh­con­flict­edPrab­hu­parti-will bere­jected these views, in­sist­ing ve been con­sid­ered so even now. es to theLa­fargechief andguest­thu­sonApril­no­tat20.anAs re-that somethe­fund­stateswashaveno­longer­adoptedanoneinorThe­has­reg­u­la­tor­con­struct­ed­hada puc­ca­tocre­ate­toi­le­tain arm’sport­edlength.by ET ear­lier, this year’svestor­morewhenini­tia­tives.there­visedGu­jarat’sCCIorder­canal­prece­dent.herkutchaIt­would­house,havea­wom­an­been

Baringaward­shad­will­invest­ed­be­for best200 dis­trictsmil-was wa­ter­passed­pro­ject­thisFe­bru­ary.isin­stru­men­talIn­fact, intheSu­ni­tasame Ya­dav­evenin­who­thetookUS,anan­dover­lion ($im­ple­ment­ing256mil­lion)in La­farge­four­pri­or­i­tyIn-as ear­ly­low­eringasJunethe2015,tem­per­a­tureBar­ing­had­ofthe­mind­draftyou,from­ce­ment­bankhasac­countsal­waysopenedbe­dia in­schemesMay2013of Mod­i­fora govern­ment.14%stake. dis­tanced­so­lar pan­els;it­self­fromwhichthe­fur­ther­compa-im-en aun­der­col­lu­sivePMin­dus­try,”JanDhan­saidYo­j­na­theto The fol­low­ingWhi­le­giv­ingApril,awayLa­fargeaward­sa­glastny and­proves­re­lin­quishedthe­ef­fi­cien­cythe­board­ofthere-so­larchiefopenex­ec­u­tiveagen­er­alof­fi­cer­store­and­o­faanot-school­reed onyear,a $PM44-bil­lionModi­had­glob­alob­served­mer-that­p­re­sen­ta­tions.plan­tandyields“It’sa high­er­been­elec­tric-13her­go­ing­glob­al­girlPE­fundVul­la­pal­lithatis al­soRani­inin ger with­statesSwissshould­peer­repli­cateHol­cim.theA­saward-amonth­si­ty­out­put,”sincethean of­fi­cialo­rig­i­nal­said.or­der theAndhrafray.“La­farge’sPradesh­whopar­tic­ipa-pre­vailed pre­cur­sore­dini­tia­tive­tothe mega­sothatal­liance,theawardswas passedTheCen­tre­and has11­month­sal­soshort-sincelist­ed­tionupon­would­her­have­par­ents­blem­ishedtonot­buytheaTV La­farge­serveSA,ain­pur­pose.Novem­ber-“Al­l14De­cem-ini­tia­tivesLa­farge­some­signed­sto­ri­es­theof buy­backc­i­t­i­zensi­na­gre-it­spri-whole­but con­struct­pro­cess. Ia toi­let.wouldSuch­havede­ber 2014,nowa­greed­stan­dadopt­ed­to­buy­by­back­a­to­talBa-of 22ement.or­i­tyHow­pro­grammes­cant­heystill-like­bea wom­an­per-com­plained­tailscould­be­ing­bep­re­sent­ed­sus­pi­cious­be­foreof ring Asia’sstates and­stakeonein UTthe –In­di­an­im­ply­ing­ceived­namedanin­sid­erChand­whenBibi­intheAjm­er­saleiswhotheirthein­tent.”PMonApril 21.

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