CCI rejects complaint against ICICI Bank

Competition Commission has rejected allegations that private sector lender ICICI Bank indulged in unfair trade practices and abused its dominant position in the market by cheating its clients.
A complaint filed by Ohm Forex Services, a firm engaged in foreign exchange and remittance business under Money Transfer Service Scheme, had alleged that ICICI "embezzled" funds from it by charging commission ranging up to 0.99 paisa per dollar on all the transactions without its consent.
It was alleged that ICICI had "siphoned off" a sum of nearly Rs 26 lakh from the account of Ohm Forex.
Consequently, Ohm Forex alleged that such unilateral, arbitrary and illegal action of the bank "is unfair trade practice" and also abuse of their position of dominance".

In an order released today, the Competition Commission of India (CCI) said that the alleged conduct by the bank took place between July 20, 2005 and April 8, 2007, which is "prior to the enforcement" of relevant provisions in the Competition Act.
"The alleged conduct being prior to the date of enforcement of section 3 or 4 cannot be examined by the Commission," CCI added.

Accordingly, the regulator said that it has "no prima facie case of contravention of the provisions of section 3 and 4 of the Act is made out against the opposite parties in the instant matter".

Sections 3 and 4 of the Act pertain to anti-competition agreement and abuse of dominant market position, respectively
Ohm had collaborated with First Remit that collected money throughout the world from the clients who want to send money to their relatives or friends in India for personal expenses. The money collected by the First Remit is distributed by Ohm Forex to the concerned customers.
The channel of transfer of funds from First Remit to Ohm Forex to the relatives/friends of the clients is through the bank, which receives money in British pound and US dollar, converts it in Indian rupee and credits the money to the account of Ohm Forex.

In 2005-06, Ohm Forex alleged to have faced lot of issues with First Remit on account of underfunding. It was stated that the funds sent by First Remit were far less than the amount of transaction paid by Ohm Forex.