With the impending superannuation of incumbent member BS Bishnoi on Wednesday, the Competition Commission of India (CCI) is set to become inquorate once again. This is likely to affect M&A approvals, and foreign direct investment (FDI) proposals are at risk of facing regulatory bumps.

With Bishnoi’s retirement, all eyes are now on the government to see if a new Member will get appointed in the next few days, sources said.

Currently, CCI has a Chairperson and two members. The other member, Sangeeta Verma, is also due to demit office next month.

Some sources, however, pointed out that CCI, on the last occasion, invoked the doctrine of necessity after getting an opinion from the Attorney General and continued to process M&A approvals despite a lack of quorum. “The doctrine is a nebulous proposition, and the validity of CCI approvals can be challenged in court if orders lack quorum”, added another source.

In the open market economy that India has adopted, the CCI plays a crucial role in promoting fair competition and preventing anti-competitive practices.

It ensures that businesses compete on a level playing field, which benefits consumers by leading to better choices, improved quality, and competitive pricing.

The CCI enforces the Competition Act, 2002, by investigating cases of abuse of dominance, anti-competitive agreements, and combinations that may have adverse effects on competition.

This helps create an environment that encourages innovation, efficiency, and economic growth while safeguarding consumers’ interests.

It may be recalled that after the erstwhile Chairman Ashok Kumar Gupta demitted office on October 25 last year, the CCI had been inquorate for seven months until the new Chairperson Ravneet Kaur assumed office in May this year.

The Chief Justice of India, DY Chandrachud-led Panel, had shortlisted candidates in May 2023 for the three CCI members’ posts. This came on the heels of the Centre appointing Ravneet Kaur, an IAS officer, as the full-time Chairperson of CCI.

The Corporate Affairs Ministry (MCA) had, on January 23, this year, invited applications for the three CCI member posts and kept the last date for submitting applications at March 9. However, in April this year, this last date for receiving applications was extended to May 1.

Interestingly, in a U-turn, the MCA advertisement of April 2023 clearly specified that applications from the judges of the High Court and district judges would be accepted for the purpose of appraisal, evaluation, and shortlisting the candidates for personal interaction.

However, these applications must be accompanied by copies of 10 judgments pronounced by them on commercial and complex civil matters, the MCA said in April.

This is significant, as MCA had in January this year kept the judges away from the zone of consideration for the post of member in CCI.

In another important move, the MCA stipulated in its April advertisement that applications from advocates, chartered accountants, cost accountants, and company secretaries must be accompanied by copies of income tax returns for the last three years and copies of 10 judgments where they have either argued or provided assistance.

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