New Delhi: Companies will have to inform the Competition Commission of India (CCI) in case of mergers and acquisitions within 30 days and can be penalised in case they fail to do so if a bill tabled in Parliament today is passed by the lawmakers.
The Competition (Amendment) Bill, 2007, seeks to give statutory powers to CCI, established in 2003, and ultimately replace the existing Monopolies and Restrictive Trade Practices Commission. The Bill provides for the CCI as a market regulator for preventing anti-competitive practices.
The bill, introduced by Corporate Affairs Minister P C Gupta in Lok Sabha, has a provision for a three-member quasi-judicial body Competition Appellate Tribunal to hear appeals against any direction issued by the Commission.
It also seeks to empower the CCI to impose penalty of up to Rs25 crore or up to three-year imprisonment or both in cases of continued contravention of its orders if the Chief Metropolitian Magistrate of Delhi deems fit.
According to the Bill, every entity must inform the Commission about mergers within 30 days, otherwise it could impose a penalty of up to one per cent of the total turnover or the assets, whichever is higher.
MRTPC will continue to deal with the pending cases even two years after the establishment of CCI and will be dissolved thereafter. However, MRTPC 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.