The Hindu Business Line : Lok Sabha nod for Bill to amend Competition Act

The Bill, which seeks to give powers to the Competition Commission of India (CCI), would make it mandatory for the companies to inform the CCI about mergers and acquisitions above a prescribed threshold limit within 30 days.

Those failing to do so would be penalised. For non-compliance with the orders of the Commission, the Bill empowers the CCI to impose penalty of up to Rs 25 crore or up to three-year imprisonment or both in cases of continued contravention of its orders if the Chief Metropolitan Magistrate of Delhi deems fit. The Bill will now be tabled in the Rajya Sabha for approval.

To sustain competition

The Corporate Affairs Minister, Mr Prem Chand Gupta, said: “the Government has enacted the Competition Act 2002 so that Indian market may be geared to face competition from within the country and outside. The Act provides for establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect consumers’ interest and to ensure freedom of trade carried on by other participants in markets.”

The CCI could not be made fully functional till date due to filing of a writ petition before the Supreme Court against certain provisions of the Act.

The Supreme Court in January 2005 closed the petition leaving it to the Government to make amendments to the Act as appropriate to address the legal issues as had been brought up during the proceedings of the petition.

“Keeping in view the developments and the new ideas that have come to the notice of the Government, these amendments have been proposed so that the Act can be implemented in the country,” Mr Gupta said.

Will replace MRTPC

The CCI will ultimately replace the Monopolies and Restrictive Trade Practices Commission (MRTPC). The Commission was established way back in 2003. The Bill has a provision for a three-member quasi-judicial body — the Competition Appellate Tribunal — to hear appeals against any direction issued by the Commission.

MRTPC will continue to deal with pending cases even two years after the establishment of CCI and will be dissolved thereafter. However, it would not entertain any new cases after the CCI is constituted. Cases pending with MRTPC after two years of setting up of CCI will be transferred to the latter.

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