**Executive Summary**
This document is a response to Unstarred Question No. 223 in Lok Sabha regarding CCI Green Channel Filings. It addresses concerns about a potential reduction in the percentage of green channel filings between 2021 and 2024. The response details that the percentage has increased and outlines the application of the Competition Act, 2002, and the Competition (Criteria of Combination) Rules, 2024, in assessing Green Channel Filings.
**Key Points / Main Content**
* **Green Channel Filing Statistics:**
* The percentage of Green Channel filings as a percentage of total combination notice filings increased from 19% in 2020-2021 to 22% in 2023-2024.
* **Green Channel Definition:**
* Green Channel is an automatic system of approval for mergers, amalgamations, and acquisitions without business overlaps.
* Provisions for Green Channel are under Section 6(4) and 6(5) of the Competition Act, 2002 and the Competition (Criteria of Combination) Rules, 2024.
* **Overlap Assessment:**
* The Commission identifies/maps overlaps in combination cases, including Green Channel route cases, considering the Ultimate Controlling Person (UCP) on a case-to-case basis.
* The introduction of UCP in the Competition (Criteria of Combination) Rules, 2024, aims to provide clarity and consistency in assessing overlaps.
* FAQs related to these rules are published on the CCI website.
**Impact Analysis**
**Stakeholder: Businesses undertaking Mergers, Acquisitions and Amalgamations**
* **Impact:** Businesses can benefit from an automatic approval route if they meet Green Channel criteria, leading to potentially faster and more efficient approvals for non-problematic transactions.
* **Action Required:** Businesses should carefully assess potential overlaps, considering the Ultimate Controlling Person (UCP), and consult the Competition (Criteria of Combination) Rules, 2024, along with related FAQs on the CCI website before making Green Channel filings.
**Stakeholder: Competition Commission of India (CCI)**
* **Impact:** Responsible for the assessment of Green Channel filings.
* **Action Required:** The CCI should continue assessing applications based on the extant provisions of the Competition Act, 2002, and the Competition (Criteria of Combination) Rules, 2024.
**Stakeholder: Stakeholders**
* **Impact:** The implementation of UCP and Competition (Criteria of Combination) Rules, 2024 provides greater clarity and consistency in assessing overlaps for all parties involved in merger, acquisition and amalgamation transactions.
* **Action Required:** Assess overlaps.
Key Entities Referenced
Competition Commission of India (CCI): The regulator responsible for assessing the applicability of Green Channel Filings.
Competition Act, 2002: The primary legislation governing competition in India, with sections 6(4) and 6(5) relevant to Green Channel.
Green Channel: An automatic system of approval for certain mergers, amalgamations, and acquisitions (combinations) with no business overlaps.
Competition (Criteria of Combination) Rules, 2024: Rules defining the criteria for combinations, including changes related to Ultimate Controlling Persons (UCP) and their impact on Green Channel filings.
Ministry of Corporate Affairs: The Ministry responsible for matters related to companies and competition, overseeing the CCI.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 223
ANSWERED on MONDAY, 01 December, 2025/AGRAHAYANA 10, 1947 (SAKA)
CCI GREEN CHANNEL FILINGS
223. Dr. Shashi Tharoor:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the percentage of green channel filings before the CCI
reduced from 2021 to 2024 according to the annual report for
financial Year 2023-24;
(b) if so, the reasons therefor, if assessed by the Government;
(c) whether CCI has opted for a strict interpretation of green channel
rules where they reject the applicability of the green channel route
in non-problematic transactions where the parties had minimal or
technical overlaps and whether this strict interpretation is the
reason for a reduction in green channel filings;
(d) if so, the details thereof;
(e) whether the changes in green channel rules made in September
2024, which consider the Ultimate Controlling Persons (UCP) of the
acquirer group for mapping overlaps with the target(s) to qualify for
a green channel filing, would further reduce green channel filings;
and
(f) if so, the steps taken by the Government to overcome this hurdle?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS.
(SHRI HARSH MALHOTRA)
(a) &(b): The number of Green Channel filings as a percentage of total
combination notice filings from 2020-2021 and 2023-2024 are as under:Financial Year No of Green % of Green
Channel Filings Channel filings
2020-21 17 19%
2021-22 24 27%
2022-23 25 25%
2023-24 25 22%
The number of Green Channel filings as a percentage of total
combination notice filing during the Financial Years 2020-2021 and
2023 -2024 has increased from 19% to 22%.
(c) & (d) Green Channel is an automatic system of approval, which is
available to only those mergers, amalgamations and acquisitions
(combinations) where there are no business overlaps of any kind, be it
horizontal, vertical or complementary in nature, between the parties to
combination. The provisions for Green Channel are provided under
Section 6(4) and 6(5) of the Competition Act, 2002 (Act) read with the
Competition (Criteria of Combination) Rules, 2024 (Green Channel
Rules). Accordingly, the Commission assesses the applicability of
Green Channel Filings as per the extant provisions of the Act and rules
/ regulations thereunder.
(e)&(f): The Commission has been identifying/mapping overlaps in
combination cases including the cases filed under Green Channel route
considering Ultimate Controlling Person (UCP) on a case-to-case basis
even prior to September 2024. The introduction of UCP in Green
Channel Rules i.e. The Competition (Criteria of Combination) Rules,
2024 alongwith the related frequently asked questions(FAQs)published
in the website of the Competition Commission of India (CCI)
(https://www.cci.gov.in/images/publications_booklet/en/faqs-on-combinations-
english1747725949.pdf),provides greater clarity and consistency, thereby
facilitating stakeholders in assessing overlaps.
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