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The Centre is considering urging the Competition Commission of India (CCI) to strengthen rules for engaging professionals to prevent potential conflict of interest when they later move to the corporate sector after working at the competition watchdog.
This intervention comes following an official complaint from InGovern Research Services to Finance and Corporate Affairs Minister Nirmala Sitharaman, said sources familiar with the development.
InGovern had recently alleged that a member of the CCI investigation team’s move to Flipkart may have compromised the investigation against the e-commerce giant. To address such concerns, the Centre is contemplating the introduction, through the CCI, a cooling-off period for professionals hired by the competition watchdog, a standard practice that restricts certain activities for a specified time after leaving a job to prevent the misuse of confidential information, sources added.
A cooling-off period of two years only applies to the Chairperson and Members of CCI, who are restricted from taking up employment related to cases they adjudicated before superannuation. The Centre recently expanded these restrictions under the Competition (Amendment) Act 2023, in the case of CCI Chairperson and Members. However, there is no cooling-off period provision for professionals engaged by the CCI in their engagement terms.
Terms may vary
The specific terms and conditions of cooling-off periods can vary widely depending on employment contracts, industry norms, and legal regulations.
Cooling-off periods are typically defined in employment contracts or non-compete agreements, and their legality and enforceability can vary by jurisdiction.
InGovern Research had raised concerns about Flipkart hiring a former CCI official, Anku Sharma, in March 2023, which cast doubts on the impartiality of CCI investigations into Flipkart-Walmart. The CCI had been actively investigating e-commerce players for alleged market monopolization and anti-competitive practices. This hiring raised concerns about potential conflicts of interest.
This isn’t the first time such issues of conflicts of interest have arisen, as a former CCI Secretary, Archana Gulati, had previously taken employment with Google India after working on digital communications policy matters at NITI Aayog. CCI has been investigating various aspects of Google’s business conduct in recent years.
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