The Hindu Business Line : Competition Bill referred to House panel

Proposed Bill
The CCI is to be an expert body with 2-7 members functioning as a market regulator for preventing anti-competition practices and would also have advisory and advocacy functions.
CCI would not adjudicate on disputes between two or more parties but would be competent to pass orders.

New Delhi , May 19

The Competition Commission of India (CCI) may have to wait for some time before it is made fully functional as the Bill to bring in amendments to the Competition Act has been referred to Parliament's Standing Committee on Finance.

The Competition (Amendment) Bill, 2006, which proposes to transform the Competition Commission of India into an expert body that would function as a market regulator performing advisory and advocacy activities, was introduced in the Lok Sabha in March.

The Bill seeks to amend the existing provisions of Competition Act, 2002, based on the directions of the Supreme Court. The CCI was established in October 2003 but could not be made functional because of a petition before the Supreme Court. In January 2005, the apex court disposed of the petition after giving certain directions.

The CCI, as per the amendment Bill, is to be an expert body with 2-7 members functioning as a market regulator for preventing anti-competition practices and would also have advisory and advocacy functions.

The Bill proposes to delete the provision of the existing Act, which envisions the CCI as one with judicial members and decision-making made through Benches.

Further, as per the proposed amendments, the CCI would not adjudicate on disputes between two or more parties but would be competent to pass orders, including cease and desist orders, and impose monetary penalties.

In effect, it would work as a collegium and its decisions would be based on simple majority, Mr Prem Chand Gupta, Minster for Company Affairs, had said while introducing the Bill in the Lok Sabha.

Appeals against orders

The Bill also proposes that appeals against the orders of the CCI could be made before the Competition Appellate Tribunal (CAT). The CAT is proposed to be a three-member quasi-judicial body headed by a retired judge of the Supreme Court or Chief Justice of a High Court.

The Appellate Tribunal would adjudicate on compensation claims that may arise on the findings of the CCI or the orders of the Tribunal.

Further, the orders of the Tribunal would be implemented as a decree of a Civil Court. Appeals against the orders of the Tribunal would lie with the Supreme Court.

MRTPC to continue

It seeks to facilitate the continuation of the Monopolies and Restrictive Trade Practices Commission (MRTPC) for two more years to try pending cases.

All cases pending even after the two-year period would be transferred to the Appellate Tribunal or National Commission of Consumer Protection, according to the Bill. Moreover, all staff of MRTPC would be absorbed in the Appellate Tribunal and the CCI.

As regards selection of the members of the CCI and Appellate Tribunal, the amendment Bill stipulates that the Chairman and members of the Commission would be experts picked by a selection committee.

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