Jairam Ramesh’s ‘Closest Friend’ Jibe At PM Modi Amid CCI Concerns Over Reliance-Disney Merger
Congress leader Jairam Ramesh raised sharp concerns about regulatory institutions’ role in India, particularly the Competition Commission of India’s (CCI), in relation to major mergers and acquisitions. He referred to a recent report by The New Indian Express which highlighted the CCI’s concerns over the proposed $8.5 billion Reliance-Disney merger. According to Ramesh, while the CCI showed interest in scrutinising this deal, it has consistently overlooked similar behaviour from other conglomerates ‘closely linked to Prime Minister Narendra Modi’.
In a post shared online, Ramesh reflected on how the CCI, despite its legal responsibilities, has allowed some conglomerates, particularly those linked to industrialist Gautam Adani, to build monopolies across crucial sectors such as ports, airports, power, and cement. He claimed that these industries are vulnerable to anti-competitive practices and that the Adani Group’s dominance in these areas poses significant risks to the market. Ramesh remarked that the CCI has approved every acquisition by the Adani Group without any significant scrutiny, suggesting an environment of intimidation and government backing.
The Congress leader drew attention to the contrast between the treatment of Adani and the Reliance-Disney merger. He pointed out that the CCI has penalised other firms for abuse of dominance but has remained silent on what he described as the Adani Group’s monopoly-building activities. Citing a five-fold increase in User Development Fees (UDF) at Lucknow and Mangalore airports, Ramesh highlighted how these airports were awarded to Adani under altered rules that favoured the company, despite objections from both the NITI Aayog and the Ministry of Finance.
The Competition Commission of India (CCI) has reportedly raised concerns that the proposed Reliance-Disney merger could stifle competition. It is a good time to reflect on how the CCI should have also had the courage to address how the non-biological PM’s other favourite business…
— Jairam Ramesh (@Jairam_Ramesh) August 21, 2024
Ramesh questioned the absence of regulatory action when it comes to the Adani conglomerate, suggesting that institutions like SEBI and the CCI have been passive in the face of actions by what he termed as the “non-biological Prime Minister’s closest friend.”
He remarked: “Why do India’s regulatory institutions, including SEBI, disappear when transactions involve the non-biological Prime Minister’s closest friend?” He also added, “Why have these typically proactive institutions remained passive as this friend has built monopolies in critical infrastructure sectors, raising prices at the expense of consumers?”
The New Indian Express report that prompted Ramesh’s comments detailed how the CCI had raised concerns over the potential anti-competitive effects of the Reliance-Disney merger, particularly in relation to their dominance over cricket broadcasting rights. The merger is set to create an entity controlling 120 TV channels and two streaming platforms, with the potential to control the pricing power of advertisers and content.
