CCI dismisses case against Client Associates

The Competition Commission has dismissed allegations of unfair business practices against private wealth management services provider Client Associates with regard to recovery of salary of an employee post resignation.

Taking a "prima facie" view that no case of contravention of the provisions of either Section 3 or Section 4 of the Competition Act is made out against Client Associates in the instant matter, the fair trade regulator closed the case.

Section 3 and Section 4 pertains to anti-competitive agreements and abuse of dominant market position, respectively.

The complainant, a former employee of Client Associates, had stated in his complaint that he had tendered his resignation in April 2017 to the firm but withdrew it after getting retention bonus of Rs 50 lakh. Upon re-joining, the company started harassing him and he again resigned in July 2017.

The grievance of the complainant arose when he found out that the company was recovering the revised salary that had already been paid to him for the months of April to June, 2017. It was allegedly recovered from the complainant's remaining salary till September 2017.

The complainant had also provided the Competition Commission of India (CCI) an e-mail wherein Client Associates had stated that he would be relieved from its services with effect from September 2017.

As per the complainant, Client Associates had indulged in unfair practices and misused its dominance.

For the case, the Competition Commission of India (CCI) considered the "market for procurement of services offered by professionals to the private wealth management firms in India" as the relevant one.

The overall market of private wealth management services is very wide and presence of Client Associates would be relatively marginal, CCI said in an order dated June 1.

Noting that Client Associates cannot be held to enjoy dominant position in the relevant market, CCI said it "does not deem it appropriate to analyse the abuse".