New Delhi, January 8, 2026 — The Competition Commission of India (CCI) has imposed a fine of INR 50 lakh (approximately $54,984) on Allcargo Logistics Limited for completing a transaction that took Allcargo from joint control to sole control of Gati Express & Supply Chain Private Limited without filing a mandatory notice in advance.
The order concerns Allcargo’s acquisition of the remaining 30% stake in the target (then Gati-Kintetsu Express) from KWE-Kintetsu World Express (S) Pte. Ltd. and KWE Kintetsu Express (India) Private Limited. Allcargo’s subsidiary, Allcargo Gati Limited, already held 70%.
The deal was approved by Allcargo’s board in November 2022, the share purchase agreement was signed in March 2023, and the transaction was concluded on June 8, 2023, resulting in Allcargo owning 100% of the target directly or indirectly.
The regulator said it reviewed the deal after noting information in the public domain suggesting the transaction had been completed. After seeking information from the group, the regulator concluded the transaction met the jurisdictional thresholds under the law and was not eligible for the commonly used Schedule I Item 2 exemption, which can apply where a buyer already holds more than 50%, except where the deal shifts control from joint to sole.
In its analysis, the regulator said the seller’s 30% holding created a presumption of “negative control” because it could block special resolutions under company law. It also found the seller held veto rights on reserved matters under the shareholders’ agreement, reinforcing joint control before the deal and a move to sole control after it.
Allcargo argued it already exercised decisive control and viewed the seller as a passive investor, with no change in how the business was run and no market harm. The regulator rejected that approach, saying notification is separate from any later assessment of market effects and that veto rights and other control-conferring protections mattered for determining whether a filing was required.
Source: https://www.cci.gov.in/combination/order/details/order/1688/0/orders-section43a_44
