 "CCI dismisses complaint against Tamilnad Mercantile Bank")
The Competition Commission of India (CCI) has dismissed a complaint by Matha Timbers, which alleged Tuticorin-based Tamilnad Mercantile Bank (TMB) of indulging in unfair business practices while providing banking services.
The petitioner alleged the bank had abused its dominant position in Tamil Nadu by imposing unfair terms and conditions in its loan agreements and sanction letters.
Matha Timbers alleged the bank had abused its position by incorporating onerous terms in loan agreements/ sanction letters, pursuant to which companies were being forced to confide all their banking transactions to the bank. It was also alleged the bank had been imposing supplementary obligations in its contracts, and was charging exorbitant rates, in violation of RBI norms.
After hearing both the sides and going through the records, Ashok Chawla, chairperson, CCI, passed the order stating "the alleged dominant position of the opposite party (Tamilnad Mercantile Bank) is not established in the present case".
"Even if the relevant geographic market were to be narrowed further to a local level or expanded to include the whole of India, prima facie, the opposite party does not appear to be dominant," the CCI order stated.
The petitioner alleged the bank had abused its dominant position in Tamil Nadu by imposing unfair terms and conditions in its loan agreements and sanction letters.
Matha Timbers alleged the bank had abused its position by incorporating onerous terms in loan agreements/ sanction letters, pursuant to which companies were being forced to confide all their banking transactions to the bank. It was also alleged the bank had been imposing supplementary obligations in its contracts, and was charging exorbitant rates, in violation of RBI norms.
After hearing both the sides and going through the records, Ashok Chawla, chairperson, CCI, passed the order stating "the alleged dominant position of the opposite party (Tamilnad Mercantile Bank) is not established in the present case".
"Even if the relevant geographic market were to be narrowed further to a local level or expanded to include the whole of India, prima facie, the opposite party does not appear to be dominant," the CCI order stated.
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