Lok Sabha Question No. 2466 (UNSTARRED), answered on 2021-12-13
Subject: Investigations by CCI
Ministry: CORPORATE AFFAIRS
Asked by: Srinivas Kesineni

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2466 ANSWERED ON MONDAY, THE 13 TH  DECEMBER, 2021 [AGRAHAYANA 22, 1943 (SAKA)]

## INVESTIGATIONS BY CCI QUESTION

2466.  SHRI KESINENI SRINIVAS:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of the number of investigations undertaken by the Competition Commission of India (CCI) during each of the three years;
- (b) the reasons for the declining trend if any, in the number of investigations undertaken by the CCI each year;
- (c) whether  the  Government  is  aware  of  the  drastically  declining  budgetary allocation to CCI and if so, the reasons therefor;
- (d) whether the Government is aware of the recent revelations of large scale anti-competitive practices undertaken by firms in the alcohol beverage industry, if so, the measures being planned by the Government to strengthen the capacity of the CCI to thwart such anti-competitive practices in business; and
- (e) 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): The  details  of  the  number  of  investigations  undertaken  by  the Competition Commission of India ( ' Commission ' )  during  each  of  the  three  years are as follows:

| Year    |   Number of Investigations ordered by the Commission in respect of anti-competitive agreements & abuse of dominant position |   Number of Inquiries undertaken and disposed of, by the Commission in Combination Notices |
|---------|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| 2018-19 |                                                                                                                          22 |                                                                                         89 |
| 2019-20 |                                                                                                                          20 |                                                                                         81 |
| 2020-21 |                                                                                                                          17 |                                                                                         90 |

Since the  Commission  became  functional, it has taken 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 of  the  economy,  undertaking  competition  assessment  of  the  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 have resulted in greater sensitization and understanding of different stakeholders including end-consumers as to the purport and import of competition law regime and accordingly, pure consumer disputes having no competition concerns, have declined.  Further,  with  the  enactment  of  the  Real  Estate  (Regulation  and Development)  Act  2016,  filings  before  the  Commission  in  respect  of  pure consumer disputes related to real estate sector have also declined.  Furthermore, the  Commission has sought to imbibe a  culture  of  competition  compliance  and self-regulation  amongst  the  market  participants.  Thus,  such  initiatives  and advocacy  measures  have  supplemented  and  complemented  the  enforcement functions of the Commission, resulting in fostering competition in the markets exante and thereby lessening the need for enforcement actions.

- (c): The  details  of  the  budgetary  allocation  to  the  Commission  during  the financial years 2016-17 to 2020-21 is given below: -

(Amount in Rs. crores)

| Financial Year      |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   2020-21 |
|---------------------|-----------|-----------|-----------|-----------|-----------|
| Grant-in-Aid to CCI |      92.1 |    119.27 |    151.56 |     55.49 |     46.15 |

The increase in Grants-in-Aid to the Commission during the Financial Years 201718 to 2018-19 was due to requirement of funds for a new office complex of the Commission, which the Commission has already occupied.

(d) & (e): The Commission has received cases alleging anti-competitive practices  by  firms  in  alcohol  beverages  industry  and  has  issued  appropriate orders, including imposition of monetary penalties.

In order to strengthen the capacity of the Commission  to  address  anticompetitive  practices  by  firms,  the  Commission  has  a  dedicated  in-house Capacity  Building  Division  which  undertakes  capacity  building  initiatives  on regular basis by organising trainings/workshops, etc. These  programs  are conducted  with  the  help  of  international  experts  from  overseas  multilateral agencies and competition authorities as well as domestic experts and organisations specialising in the field of law, economics, finance etc. In addition, the  Commission  conducts  in-house  trainings  as  well  as  Peer-to-Peer  sessions, where  inter-divisional  sharing  of  knowledge  and  information  takes  place.  Also, the  Commission  deputes  its  officers  for  training  by  way  of  secondments  with counterpart anti-trust agencies.

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