Recently, the Competition Commission of India (CCI) has imposed a penalty of ₹5 lakh on Platinum Trust and TPG Upswing with regard to their stake acquisition in UPL Sustainable Agri Solutions Ltd (UPL SAS) for Gun Jumping. Previously, it imposed a penalty of ₹40 lakhs on Axis Bank for the same on its 9.91 percent stake buy in CSC e-governance.
What is Gun Jumping? No, no, it is not a new sport or the name of the next movie in the James Bond franchise.
Here, Gun Jumping is all about competition and merger control. India is not the only country that is tackling gun jumping. Many countries are imposing very high fines to discourage this practice. India, too, is not far behind. Over the years, the CCI has levied penalties on many such transactions.
What does CCI do if parties are found to be ‘gun jumping’? There are many cases, like the Jet-Etihad case; Hindustan Colas Private Ltd; UltraTech Cement Limited; Adani Transmission; Adani Green Limited; Bharti Airtel.
K.R. Srivats explains all you need to know about this Gun Jumping.