The Competition Appellate Tribunal has upheld a fine of Rs 200 million imposed on banks found guilty of forming a cartel, and has dismissed the appeals filed by commercial banks.
The tribunal rejected the appeals of seven major banks and the Pakistan Banking Association against penalties imposed by the Competition Commission of Pakistan. It confirmed the commission’s decision to levy a Rs200 million fine for cartelisation by the banks.
The ruling brings to an end one of the longest pending cases against the Competition Commission, which had remained unresolved for 18 years.
In April 2008, the Competition Commission had held the Pakistan Banks Association (PBA) and seven major banks responsible for jointly fixing the markup rate on enhanced savings account. The commission concluded that the coordinated fixing of rates amounted to the formation of a cartel and imposed financial penalties accordingly.
With the dismissal of the appeals, the tribunal has maintained the Competition Commission’s original order and the fine remains in force.
