June 29, 2014 1:22:47 am
The Competition Commission of India (CCI) has imposed Rs 1 crore penalty on three entities, including Thomas Cook and Sterling Holiday Resorts, for carrying out certain market purchases related to their deal before seeking the fair trade regulator’s approval.
The imposition of penalty by CCI was disclosed by Thomas Cook (India) in a regulatory filing on Saturday.
A penalty has also been imposed on Thomas Cook Insurance Services (India) Ltd, a party to the deal. The Rs 870-crore deal involving merger of Sterling Holiday Resorts (India) with travel firm Thomas Cook (India) has already been cleared by the CCI.
The fine relates to market purchases carried out as part of the deal between February 10-12. Thomas Cook Insurance Services (India) Ltd acquired more than 90.26 lakh shares, representing 9.93 per cent stake of Sterling Holiday Resorts (India) Ltd. The entities sought CCI nod two days after purchases were made.
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