TaxTMI 
TaxTMI 
2025 (6) TMI 365
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....ndia and therefore falls under the definition of 'enterprise' as provided under Section 2(h) of the Act. 4. As per the Informant, the relevant market in this case, is the 'market for the provision of banking and loan services in India'. OP has a substantial share in the relevant market and is the third largest nationalized bank which gives it a dominant position, enabling it to exercise influence over loan terms and rates without competitive pressures. 5. The Informant has stated that it had sought financial support for a 3 MW solar plant project under the Priority Sector Lending Guidelines from OP for the purpose of establishing solar power generation firm. The OP sanctioned a Term Loan dated 12.07.2016 of Rs. 13.25 crores but disbursed only Rs. 12.62 crores to the Informant. Despite initial assurance of favourable interest rates, the OP imposed an unexpectedly high interest rate of 16.20% instead of the promised 11.50%, later changing it to 14.20% without full transparency of facts and reasons. It is further stated that a concession in the interest rate from 14.45% p.a. to 11% was granted to the Informant by OP vide letter dated 06.03.2018 in compliance of Credit Approval Commi....
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.... outstanding amount of Rs. 9.93 crores of Term Loan into a new loan with 10.95% floating rate of interest with an increased tenure of 2 years. It is alleged that by way of rescheduling the loan, the OP was actually charging interest on interest, charging further interest on principal amount of the Term Loan without any adjustments towards the principal amount, further compounding the burden on the Informant. 10. It is stated that the Informant also availed additional GECL under the Resolution Framework 2.0 to an extent of 10% as on 29.02.2020 under Emergency Credit Line Guarantee Scheme 1.0 of National Credit Guarantee Trustee Company Ltd. of Rs. l,00,00,000/- for a term of 5 years at 7.50% p.a. interest rate vide separate loan account no. 1730000981060; so as to overcome the compelling resolution framework principal amount, interest rates and interest on interest rates to protect the business operations under Covid-19 induced economic crisis. 11. The Informant alleged that due to these anti-competitive agreements and subsequent arbitrary changes made in the interest rates by the OP, the business of the Informant was hampered which ultimately led to forceful exit of the Informant....
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.... of Rs. 36,54,267/- and principal re-paid of Rs. 41,48,828/- as on 10.10.2024) paid by the Informant against the FITL Account No. 173000079348, along with the same interest rate charged upon the Informant by the OP; iii. to direct the OP to waive the remaining FITL of Rs. 70,18,172/- of the Informant and close the loan account no. 173000079348; iv. to direct the OP to waive off the penal interest, penalty and other charges levied on the loans from the start and the amount so collected should be refunded back to the Informant, with the same interest charged, as the same is illegal and contrary to the provisions of law; v. to direct the OP to pay compensation of Rs. 20,00,00,000/- to the Informant, against all the unfair, arbitrary, illegal and anti-competitive practices undertaken by the OP, giving high mental agony, constant financial stress, spoiling the name and goodwill in the society of the Informant and his family; vi. to pass any other relief that the Commission may deem fit and proper in the interest of justice and fair competition. 18. The Commission considered the matter in its ordinary meeting held on 05.03.2025 and decided to pass an appropriate order in d....
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....ion, the Commission notes that the sanction letter dated 12.07.2016 for the Term Loan of Rs.13.25 crores issued to the Informant by the OP shows that the loan was sanctioned at an interest rate of 16.20% p.a. along with other terms and conditions. It was mentioned in the sanction letter that the 'interest stipulated is subject to review by Bank keeping in view DSCR, Debt/Equity, Margin, Repayment schedule, past experience etc. and also further changes as may be decided by the bank' and that 'the rate of interest stipulated is subject to changes as decided by the bank from time to time'. The Commission also notes that the rate of interest on the Term Loan was changed from 16.20% p.a. to 14.20% p.a. with annual reset on the request of Informant, by OP vide letter dated 14.09.2016 and was further revised from 14.20% p.a. to 11.00% p.a. with annual reset vide OP letter dated 06.03.2018. The above terms and conditions have been agreed upon by the Informant with the OP. Accordingly, the Commission finds that the allegation against the OP regarding arbitrary changes in the interest rates is without merit. 23. Further, with respect to the allegation about imposition of back interest charg....