Lok Sabha Question No. 2417 (UNSTARRED), answered on 2021-12-13
Subject: Cartelisation by Paper Manufacturers
Ministry: CORPORATE AFFAIRS
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2417 ANSWERED ON MONDAY, THE 13 TH  DECEMBER, 2021 [AGRAHAYANA 22, 1943 (SAKA)] CARTELISATION BY PAPER MANUFACTURERS

## QUESTION

2417.  SHRI RAVNEET SINGH BITTU:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

(a) whether  it  is  a  fact  that  certain  paper  manufacturers  have  been  found  to  be indulging  in  cartelisation  in  fixing  the  prices  of  writing  and  printing  paper  and  if  so,  the details thereof; (b) whether it is a fact that the Competition Commission of India has imposed penalty on such paper manufacturers for indulging in cartelisation and if so, the details thereof; (c) whether  the  Government  proposes  to  take  some  measures  and  enforce  strong regulation to prevent such practices by some paper manufacturers in the future; and (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER  OF STATE (INDEPENDENT  CHARGE) OF THE MINISTRY  OF  PLANNING;  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF  CORPORATE AFFAIRS. (RAO INDERJIT SINGH) (a) & (b): In a case initiated suo motu by Competition Commission of India ( ' Commission ' )  (Case  NO.  5  of  2016),  ten  (10)  paper  manufacturing  firms  and  one association, were found to have contravened the provisions of Section 3 of the Competition Act,  2002  ( ' Act ' ),  which  prohibits  anti-competitive  agreements,  including  cartels.    The Commission passed a final order on 17.11.2021 and imposed a penalty of Rs. 5 Lakhs upon the aforesaid ten (10) contravening manufacturing firms and a penalty of Rs. 2.5 Lakh on the Association of Paper Manufacturers, for providing its platform for such anti-competitive activities.      Further,  one  paper  manufacturer,  however,  was  granted  benefit  of  100% reduction  in  penalty  imposed  as  it  approached  the  Commission  under  the  provisions  of Section 46 of the Competition Act, 2002 by filing a lesser penalty/leniency application. (c) & (d): Section 3 of the Act prohibits certain agreements including cartels which are anti-competitive in nature. Whereas Section 19 of the Act provides for inquiry into certain anti-competitive  agreements  including  cartels,  Section  26  of  the  Act  provides  for  the procedure of such inquiries.    Further,  under  Section  27  of  the  Act,  the  Commission  may pass  an  order  including  imposition  of  penalty  against  the  parties  involved  in  such  anticompetitive agreements including cartels. In  addition  to  above,  the  Commission  also  undertakes  various  proactive  measures  from time to time to ensure effective competition and fair play in the market. These, inter-alia, include conducting market studies on relevant sectors, undertaking competition assessment  of  Model  Concession  Agreements  in  the  public  service  delivery  sectors, extensive and intensive advocacy outreach initiatives such as conducting workshops/conferences/webinars/ roadshows on competition laws & practices etc. These measures  result  in  greater  sensitization  and  understanding  of  different  stakeholders including Industries, Academia, Public Sector Undertakings (PSUs), Trade Associations etc.

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