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The Ministry of Corporate Affairs vide notification dated 29th June 2017 exempts every person or enterprise who is a party to a “Combination”, as defined in the Competition Act, 2002 (“Act”), from giving notice to the Competition Commission of India (“CCI”) within thirty days of the proposed combination, subject to the conditions laid down in the said Act. This exemption has been provided for a period of five years from the date of publication of the aforesaid notification i.e. till 29th June 2022.

Background:
Previously, under Section 6(2) of the said Act, any combination had to be reported to the CCI within thirty days of approval of the proposal relating to the merger or amalgamation or execution of any agreement or other document which will effectuate such merger/acquisition. A party that failed to notify the CCI within thirty days could face a penalty of up to one percent of the total turnover or the assets, whichever is higher, of such a combination.

Conclusion:
The parties have to now report the combination to the CCI, however the burden to report within the thirty day time period has been relaxed.