2025 (5) TMI 1921

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....and Kashmir Bank ('OP'). 2. As per the Information, Informants are consumers of one of the services of OP which is a scheduled commercial bank incorporated in 1938. OP is a leading bank in the Union Territory of Jammu & Kashmir ('UT of J&K') and caters to banking requirements of various customer segments including business enterprises, employees of government, semi-government and autonomous bodies, farmers, artisans, public sector organisations and corporate clients. OP also offers a wide range of products, including home loan, personal loan, education loan, agriculture loan, trade credit, locker facility etc. 3. The Informants have stated that OP is an overwhelmingly dominant player in the UT of J&K and has entered into various anti-comp....

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....s per the Information, in October 2022, the Informants approached a Royal Enfield dealer at Khanabal Batengoo, Anantnag, Jammu and Kashmir, to purchase a Classic 350CC Chrome Red motorcycle on loan. The Informants requested the dealer to provide information on available interest rates in the market. The dealer stated that loan options were available exclusively through J&K Bank. As no other options were provided, the Informants were compelled to purchase the motorcycle on loan from OP's bank. The Informants have provided the sale certificate of the purchase and have stated that the same demonstrates OP's anti-competitive tie-up with Royal Enfield since 2022. 6. The Informants stated that OP being a dominant player in the UT of J&K, particu....

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....June 30, 2023, respectively. It has been stated that, as per the website of RBI, there are 24 public and private banks operating in the UT of J&K, with a combined network of 4,543 branches, ATMs and offices, of which, 2,266 belong to OP bank, demonstrating its significant dominance in the region. 10. Based on the above averments, the Informants has prayed to the Commission: i. to inquire into the anti-competitive practices of OP which violates the provisions of Sections 3 and 4 of the Act; ii. to direct OP to discontinue above-mentioned MoUs/agreements which violate the provisions of Sections 3 and 4 of the Act; iii. to impose an appropriate penalty on OP and/or concerned persons/entities in accordance with the provisions of the Act;....

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.... appear to be revolving around Section 3 of the Act which deals with prohibition of anti-competitive agreements. 16. At the outset, the Commission notes that institutions ordinarily enter into agreements with Bank of their choice for availing/providing banking facility/services to/for their employees. Such kind of arrangements are usually decided mutually by both the parties on agreeable terms and conditions. Further, from the perusal of MoU dated 12.09.2018 entered between OP and Government of J&K, it appears that the primary purpose of the same was to confer preferential treatment to the entities/permanent employees of Government of J&K in terms of offering customized, hassle free and personalized banking services. It appears that there ....