CCI Clears Canara Bank: No Dominance Abuse Found

The Competition Commission of India (CCI) on Monday dismissed allegations of anti-competitive conduct against Canara Bank, a prominent public sector lender. The complaint accused the bank of abusing its dominance in multiple loan transactions, including imposing arbitrary interest rates and colluding with property valuers to intentionally undervalue assets.

The CCI clarified that it found no prima facie contravention of sections 3 and 4 of the Competition Act, which address anti-competitive agreements and abuse of dominant positions, respectively. KSD Zonne Energie LLP, the complainant, alleged that Canara Bank had obstructed attempts to transfer loans to other banks by withholding necessary collateral documents.

However, the regulator concluded that Canara Bank's 5.73 per cent market share does not constitute dominance in India's competitive banking sector. The CCI stated that without dominance, there can be no abuse. Additionally, no evidence was found of any collusion between property valuers and the bank.

(With inputs from agencies.)