Executive Summary:
This notification, issued by the Ministry of Corporate Affairs on March 27, 2017, provides exemptions from certain provisions of Section 5 of the Competition Act, 2002. It exempts certain acquisitions, control acquisitions, mergers, and amalgamations based on asset value and turnover thresholds. These exemptions are valid for five years from the date of publication in the official gazette.
Key Points / Main Content:
Exemptions Under Competition Act:
* Exempts enterprises involved in specific acquisitions (Section 5(a) of the Competition Act).
* Exempts the acquiring of control by a person over an enterprise already under their direct or indirect control, involved in similar goods/services (Section 5(b) of the Competition Act).
* Exempts certain mergers or amalgamations (Section 5(c) of the Competition Act) where the asset value is not more than 350 crore rupees in India, or the turnover is not more than 1000 crore rupees in India.
* Exemptions are valid for five years from the date of publication.
Threshold Calculation for Partial Enterprise Transactions:
* When a portion of an enterprise is acquired, controlled, merged, or amalgamated, the asset value and turnover of that specific portion are considered.
* Asset value is determined by the book value in audited accounts, as reduced by depreciation, including brand value, goodwill, copyright, patents, and other commercial rights.
* Turnover of the specific portion is to be certified by a statutory auditor based on the last available audited accounts.
Rescission of Previous Notification:
* Notification S.O. 674(E), dated March 4, 2016, is rescinded, except for actions already completed before the rescission.
Impact Analysis:
Enterprises Involved in Acquisitions, Mergers, or Amalgamations:
* Impact: Enterprises meeting the specified asset and turnover thresholds are exempt from certain provisions of Section 5 of the Competition Act, potentially simplifying and expediting these transactions.
* Action Required: Determine if the transaction falls within the specified thresholds to qualify for the exemption. Ensure asset and turnover values are accurately assessed and documented as per the notification's guidelines, using audited accounts and auditor certifications where applicable.
Statutory Auditors:
* Impact: Auditors are responsible for certifying the turnover of the specific portion of an enterprise involved in a transaction, based on the last available audited accounts.
* Action Required: Provide accurate turnover certification based on audited accounts when a portion of an enterprise is involved in an acquisition, merger, or amalgamation.
Central Government/Ministry of Corporate Affairs:
* Impact: Responsible for enforcing the Competition Act and monitoring the impact of these exemptions on market competition.
* Action Required: Monitor market activities and reassess the exemptions after five years to determine their continued necessity and effectiveness.
Key Entities Referenced
Competition Act, 2002: A law in India related to competition and market regulation, specifically sections 5 and 54 are mentioned in the context of acquisitions, control, mergers, and amalgamations.
Central Government: The executive authority of India, empowered to issue notifications and exemptions under the Competition Act, 2002.
Ministry of Corporate Affairs: The government ministry responsible for administering the Companies Act and other laws related to corporations in India. It issued the notification being analyzed.
New Delhi: The location where the notification was issued.
K. V. R. MURTY: The Joint Secretary who signed the notification from the Ministry of Corporate Affairs.
S.O. 988(E): The specific number assigned to the notification being analyzed.
S.O. 674(E), dated the 4th March, 2016: Notification of the Government of India in the Ministry of Corporate Affairs that is being rescinded.
India: The country to which the policy and financial thresholds mentioned in the notification apply.
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No. 881] NEW DELHI, WEDNESDAY MARCH 29, 2017/CHAITRA 8, 1939
कारपोरेट काय र्म(cid:7074)ं ालय
अिधसूचना
नई िदल् ली, 27 माचर्, 2017
का.आ. 988(अ).—केन् (cid:7076)ीय सरकार, (cid:7079)ितस् पधार् अिधिनयम, 2002 (2003 का 12) की धारा 54 के खंड (क) (cid:7367)रा
(cid:7079)दत् त शिक् तय(cid:7298) का (cid:7079)योग करते हुए लोकिहत म(cid:7286) उ(cid:7378)म(cid:7298) को िनम् निलिखत का पक्षकार बनने से छूट देती ह—ै
(क) (cid:7079)ितस् पधार् अिधिनयम की धारा 5 के खंड (क) म(cid:7286) िन(cid:7416)दष् ट िकसी अजर्न;
(ख) िकसी उ(cid:7378)म पर िकसी व् यिक् त (cid:7367)ारा िनयं(cid:7074)ण (cid:7079)ाप् त करने पर, जब ऐसे व् यिक् त का (cid:7079)ितस् पधार् अिधिनयम की
धारा 5 के खंड (ख) म(cid:7286) िन(cid:7416)दष् ट समान या समरूप (cid:7079)ितस् थापनीय माल के उत् पादन, िवतरण या समान या
समरूप (cid:7079)ितस् थापनीय सेवा की व् यवस् था संबंधी व् यापार म(cid:7286) लगे हुए अन् य उ(cid:7378)म पर पहले ही (cid:7079)त् यक्ष या
अ(cid:7079)त् यक्ष िनयं(cid:7074)ण; और
(ग) (cid:7079)ितस् पधार् अिधिनयम की धारा 5 के खंड (ग) म(cid:7286) िन(cid:7416)दष् ट िकसी िवलय या समामेलन,
जहां अिजत की जा रही, िनयं(cid:7074)ण म(cid:7286) ली जा रही, िवलय या समामेिलत की जा रही आिस् तय(cid:7298) का मूल् य भारत म(cid:7286)
350 करोड़ रुपए से अिधक नह(cid:7277) ह ैया भारत म(cid:7286) आवतर् 1000 करोड़ रुपए से अिधक नह(cid:7277) ह,ै अिधिनयम की धारा 5 के उपबंध(cid:7298)
से इस अिधसूचना के राजप(cid:7074) म(cid:7286) (cid:7079)काशन की तारीख से पांच वषर् के िलए छूट दते ी ह ै।
2. जहां िकसी उ(cid:7378)म या (cid:7079)भाग या कारबार का कोई भाग अन् य उ(cid:7378)म के साथ अिजत िकया जा रहा ह,ै िनयं(cid:7074)ण म(cid:7286) िलया
जा रहा ह,ै िवलय या समामेिलत िकया जा रहा ह,ै उक् त भाग या (cid:7079)भाग या कारबार की आिस् तय(cid:7298) का मूल् य या इसको
आरोप् य, सुसंगत आिस् तयां और अिधनयम की धारा 5 के अधीन सीमा(cid:7312) को पिरकिलत करने के (cid:7079)योजन के िलए लेखे म(cid:7286) िलए
1765 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
जाने वाला आवतर् होगा । उक् त भाग या (cid:7079)भाग या कारबार का मूल् य उ(cid:7378)म की संपरीिक्षत लेखा बिहय(cid:7298) म(cid:7286) यथादिशत आिस् तय(cid:7298)
के िलिखत मूल् य को लेते हुए या कानूनी लेखा परीक्षक की िरपोटर्, जहां िवत् तीय िववरण दािखल िकए जाने के िलए देय नह(cid:7277)
हुआ ह,ै ठीक पूवर्वत(cid:7278) िवत् तीय वषर् िजसम(cid:7286) (cid:7079)स् तािवत समु(cid:7340)य की तारीख आती ह,ै जैसा की िकसी अवक्षयण (cid:7367)ारा घटाया गया
ह ै अवधािरत िकया जाएगा और आिस् तय(cid:7298) के मूल् य के अंतगर्त (cid:7081)ांड मूल् य, सदभाव का मूल् य, या (cid:7079)ितिलप् यािधकार का मूल् य,
पेट(cid:7286)ट, अनुज्ञात उपयोग, सामूिहक िचन्ह, रिजस् (cid:7069)ीकृत स् वामी, रिजस् (cid:7069)ीकृत व् यापार िचन्ह, रिजस् (cid:7069)ीकृत उपयोगकतार्, समध् वनीय
भौगोिलक लक्षण, भौगोिलक लक्षण, िडजाइन या लेआउट िडजाइन, समान अन् य वािणिज् यक अिधकार यिद कोई हो, जो
धारा 3 की उपधारा (5) म(cid:7286) िन(cid:7416)दष् ट ह (cid:7289)। उक् त भाग या (cid:7079)भाग या कारबार का आवतर् कंपनी के अंितम उपलब् ध संपिरक्षीत लेख(cid:7298)
के आधार पर कानूनी संपरीक्षक (cid:7367)ारा यथा(cid:7079)मािणत होगा ।
[फा. सं. 5/33/2007-सीएस]
के. वी. आर. मूित, संयुक् त सिचव
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 27th March, 2017
S.O. 988(E).—In exercise of the powers conferred by clause (a) of section 54 of the Competition
Act, 2002 (12 of 2003), the Central Government, in public interest, hereby exempts the enterprises being
parties to ––
(a) any acquisition referred to in clause (a) of section 5 of the Competition Act;
(b) acquiring of control by a person over an enterprise when such person has already direct or
indirect control over another enterprise engaged in production, distribution or trading of a
similar or identical or substitutable goods or provision of a similar or identical or substitutable
service, referred to in clause (b) of section 5 of the Competition Act; and
(c) any merger or amalgamation, referred to in clause (c) of section 5 of the Competition Act,
where the value of assets being acquired, taken control of, merged or amalgamated is not more than rupees
three hundred and fifty crores in India or turnover of not more than rupees one thousand crores in India, from
the provisions of section 5 of the said Act for a period of five years from the date of publication of this
notification in the official gazette.
2. Where a portion of an enterprise or division or business is being acquired, taken control of,
merged or amalgamated with another enterprise, the value of assets of the said portion or division or business
and or attributable to it, shall be the relevant assets and turnover to be taken into account for the purpose of
calculating the thresholds under section 5 of the Act. The value of the said portion or division or business shall
be determined by taking the book value of the assets as shown, in the audited books of accounts of the
enterprise or as per statutory auditor’s report where the financial statement have not yet become due to be
filed, in the financial year immediately preceding the financial year in which the date of the proposed
combination falls, as reduced by any depreciation, and the value of assets shall include the brand value, value
of goodwill, or value of copyright, patent, permitted use, collective mark, registered proprietor, registered
trade mark, registered user, homonymous geographical indication, geographical indications, design or layout-
design or similar other commercial rights, if any, referred to in sub-section (5) of section 3. The turnover of
the said portion or division or business shall be as certified by the statutory auditor on the basis of the last
available audited accounts of the company.
[F. No. 5/33/2007-CS]
K. V. R. MURTY, Jt. Secy.¹Hkkx IIμ[k.M 3 (ii)º Hkkjr dk jkti=k % vlk/kj.k
3
अिधसूचना
नई िदल्ली, 27 माचर्, 2017
का.आ. 989(अ).—केन्(cid:7076)ीय सरकार, (cid:7079)ितस्पधार् अिधिनयम, 2002 (2003 का 12) की धारा 54 के खंड (क) के (cid:7367)ारा
(cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करते हुए, लोक िहत म(cid:7286), भारत सरकार के कारपोरेट कायर् मं(cid:7074)ालय की अिधसूचना संख्यांक
का.आ. 674(अ), तारीख 4 माचर्, 2016, जो भारत के राजप(cid:7074), असाधारण, भाग II, खंड 3, उप-खंड (ii) म(cid:7286) तारीख
4 माचर्, 2016 को (cid:7079)कािशत की गई थी, उन बात(cid:7298) के िसवाय, िजन्ह(cid:7286) ऐसे िवखंडन से पूवर् िकया गया था या िकए जाने का लोप
िकया गया था, िवखंडन करती ह ै।
[फा. सं. 5/33/2007-सीएस]
के. वी. आर. मूित, संयु(cid:7334) सिचव
NOTIFICATION
New Delhi, the 27th March, 2017
S.O. 989(E).—In exercise of the powers conferred by clause (a) of section 54 of the Competition Act,
2002 (12 of 2003), the Central Government, in public interest, hereby rescinds the notification of the
Government of India in the Ministry of Corporate Affairs, S.O. 674(E), dated the 4th March, 2016, published
in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the 4th March, 2016, except as
respects things done or omitted to be done before such rescission.
[F. No. 5/33/2007-CS]
K. V. R. MURTY, Jt. Secy.
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