the party consummated LHR transaction," the order said.
The airlines sought CCI nod for the Rs 2,060-crore deal on May 1.
The parties approached the Commission pursuant to an an Investment Agreement (IA), a Shareholder's Agreement (SHA) and a Commercial Co-operation Agreement (CCA). These were executed on April 24.
Under the Competition Act, entities proposing to enter into a combination are required to give notice to the Commission disclosing the details of the proposed combination, within the time prescribed therein.
"In the instant case, the parties consummated LHR Transaction without giving notice to the Commission," the order said.
According to the fair trade regulator, the parties agreed that CCA shall come into force on April 24, whereas the notice was given only on May 1.
Moreover, the parties even pursued certain actions, both before and after giving notice, that are in conjunction with the obligations envisaged under the CCA, without waiting for the approval of the Commission, it added.
"In view of the foregoing, it is concluded that Etihad Airways failed to give notice under sub-section (2) of Section 6 of the Act of LHR Transaction and CCA and the parties implemented LHR transaction and CCA without giving notice as well as without awaiting the approval of the Commission," the order said.
As per the Commission, the parties had been mending and changing transaction terms and conditions as per the the advise/requirements of different regulators from time to time.
"This fact is also evident that one of the parties to the combination was in dire need of financial support being provided by the other party to the combination and it seems to have shown its willingness and bona-fides by taking steps in accordance with CCA during pendency of approval itself," the order said.
In these kind of cases, the Commission can impose a penalty that may extend to one per cent of the total turnover or the assets, whichever is higher, of such a combination.
In this case, one percent of the combined value of turnover of the parties is more than Rs 400 crore and one percent of the combined value of asset of the parties is more than