KSD Zonne Energie LLP Vs Canara Bank Limited (Competition Commission of India)
Competition Commission of India (CCI) has dismissed allegations of anti-competitive practices and abuse of dominant position brought by KSD Zonne Energie LLP against Canara Bank Limited. The solar energy firm had accused the public sector bank of arbitrarily altering interest rates, imposing hidden charges, and obstructing loan transfers, among other claims. The CCI, however, found no prima facie case of contravention of the Competition Act, 2002.
KSD Zonne Energie, a Limited Liability Partnership involved in solar power generation, filed information under Section 19(1)(a) of the Competition Act, 2002, alleging violations of Sections 3 and 4 of the Act by Canara Bank. The Informant stated that Canara Bank, as a public sector undertaking, falls within the definition of ‘enterprise’ under the Act.
The core of KSD Zonne Energie’s complaint centered on financial support sought for a 3 MW solar plant project. The Informant claimed that Canara Bank sanctioned a term loan of Rs. 13.25 crores on July 12, 2016, but disbursed only Rs. 12.62 crores. Initially assured a favorable interest rate of 11.50%, the Informant alleged that the bank imposed a higher rate of 16.20%, later adjusting it to 14.20% without full transparency. While a concession to 11% was granted on March 6, 2018, the Informant contended that on January 11, 2021, the bank retrospectively increased the interest rate to 14.45% for the period September 4, 2018, to July 16, 2020, demanding an additional Rs. 76,75,894/- as back interest, citing an error on the bank’s part.
