The Parliamentary Public Accounts Committee (PAC), headed by Congress MP KC Venugopal, is likely to review the performance of the Competition Commission of India (CCI) amidst accusations that the regulator has been lenient in clearing deals of Gautam Adani’s conglomerate.
This comes in the wake of Congress leader Jairam Ramesh’s recent vocal criticism, where he accused the CCI of systematically favoring Adani’s interests by greenlighting acquisitions that have allegedly enabled the Group to establish monopolies across several industries, including ports, airports, and power.
“The CCI is legally required to approve mergers and acquisitions that exceed a certain threshold. Yet, all acquisitions by the Adani Group have been approved, even as the company builds monopolies in sectors like ports, airports, power, and cement—industries at high risk of market failure and anti-competitive practices—often through threats and intimidation that have the backing of the powers-that-be”, posted Jairam Ramesh on X recently.
“In recent years, the CCI has not hesitated to impose penalties on both domestic and global firms for alleged abuse of dominance. Yet, a five-fold increase in User Development Fees (UDF) paid by passengers at Lucknow and Mangalore airports has been allowed by the Union Government”, added Jairam Ramesh.
The expected performance review could also delve into the CCI’s failure to recover significant penalties from violators. Over the years, the Commission has imposed penalties, but the actual recovery remains minuscule—raising eyebrows over its effectiveness in delivering tangible outcomes in its regulatory duties.
The pressure on the CCI has mounted ever since Hindenburg Research published its damning report accusing the Adani Group of regulatory favourtism , which further fuelled the debate over the CCI’s role in clearing conglomerate’s acquisitions. The timing of the PAC’s scrutiny is also being linked to the upcoming political discourse surrounding India’s economic future, particularly on the concentration of wealth and power in the hands of a few large business conglomerates.
Sources said that the PAC has approached Ministry of Corporate Affairs to garner information on the M&A deals after the Congress’s public allegations.