New Delhi: India’s six-month-old competition watchdog doesn’t have enough staff to tackle cases.
The Competition Commission of India, probing complaints against companies such as HDFC Bank Ltd, Jet Airways (India) Ltd and even a division of the ministry of external affairs, hasn’t been able to make much progress.
Questioning authority: Kingfisher Airlines has filed a writ petition in the Bombay high court challenging the jurisdiction of the Competition Commission to conduct an inquiry against airlines. Mint
It also seems headed for long-drawn battles with some companies that are challenging its authority.
CCI has had nine cases pending since May, when it started operating.
“There are just 15 of us handling everything, from administration to looking into cases,” said a senior official familiar with the developments. “In fact, in two cases, the director general (DG) of CCI has asked for extension of three months each for investigation.”
The complaints pertain to cartelization or the abuse of a dominant position intended to eliminate or deter a competitor. Mint couldn’t independently verify the nature or the accuracy of the charges.
“The main reason for cases not being disposed of is lack of officials at CCI,” said a senior official at the ministry of corporate affairs (MCA), CCI’s parent ministry. “Besides, handling such cases need expert hands and the ministry will soon appoint experts from legal, economic and finance backgrounds at different levels to help handle cases of cartelization.”
CCI is armed with more powers than its predecessor, the Monopolies and Restrictive Trade Practices Commission (MRTPC) but has been strapped for staff.
It had planned to hire at least 240 professionals in economics, finance and law in the first year.
“Unlike that under MRTPC, CCI has the power to impose penalty and give leniency to the whistle blower, who deviates from the cartel and informs the competition authority,” said G.R. Bhatia, partner at Luthra and Luthra Law Offices. “In fact, I would say if nine cases have come to CCI, that itself suggests people are developing faith in CCI. But then I also feel cracking the first case and imposing deterrence on companies forming cartels will take time.”
The lack of manpower and expertise have even precluded the ministry from notifying sections relating to mergers and acquisitions (M&As), the ministry official said. Once notified, the CCI would have to look into M&As above a set threshold and give its approval.
The commission has now advertised vacancies for six senior posts, including the positions of director, joint directors and deputy directors. “Even the director general, who is supposed to deal with the cases, is just an acting DG (K.K. Sharma),” said another CCI official.
Graphics: Yogesh Kumar / Mint
For at least two years after it got statutory powers, CCI could play only an advisory role as it looked to hire a chairman and five senior members, delaying the start of its operations.