Lok Sabha Question No. 3821 (UNSTARRED), answered on 2025-03-24
Subject: Competition Commission of India
Ministry: CORPORATE AFFAIRS
Asked by: Shri Jagdambika Pal, Shri Ramesh Awasthi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 3821

ANSWERED ON MONDAY, MARCH 24, 2025/ CHAITRA 3, 1947 (SAKA)

## Competition Commission of India QUESTION

3821. Shri Ramesh Awasthi: Shri Jagdambika Pal:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the outcome of investigations initiated by the Office of Director General, Competition Commission of India during the last three years;
- (b) the measures taken by the Government to remedy cartelization in various sectors during the last three years; and
- (c)  the  measures  are  being  taken  by  the  Government  to  address  anticompetitive practices by the Competition Commission of India?

## ANSWER

MINISTER  OF  STATE  IN  THE  MINISTRY  OF  CORPORATE  AFFAIRS  AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

(SHRI HARSH MALHOTRA)

- (a) The Competition Commission of India (CCI) caused investigation under Section 26(1) of the Competition Act, 2002(the 'Act') in 49 cases in last three (03) Financial Years i.e. 2021-22 to 2024-25 (till 13.03.2025). Out of these 49 cases, the Director General (DG) has submitted its investigation report in 31 cases and 18 cases are pending for investigation before the DG. Out of the 31 cases for which the investigation report has been received, the Commission has passed the final order in 11 cases and 20 cases are under consideration before the Commission.
- (b) Twenty One (21) cases pertaining to cartelization in various sectors such as Civil Aviation, Financial Services, Health & Pharma, Iron & Steel, Power,

Railway,  Misc  etc.  were  sent  for  investigation  to  the  DG  in  the  last  three Financial Years i.e. 2021-22 to 2024-25 (till 13.03.2025).  Out of these cases, investigation  report  in  11  cases  has  been  received  &  10  cases  are  under investigation before the DG.  Final order in 01 case has been passed and 10 cases are under consideration before the Commission.

The  Competition  (Amendment),  Act,  2023  introduced  the  concept  of 'lesser  penalty  plus'  within  the  framework  of  Section  46  of  the  Act. Consequently,  on  20.02.2024,  the  CCI  (Lesser  Penalty)  Regulations,  2024 were  notified,  replacing  the  2009  regulations  and  introducing  a  'lesser penalty plus' (LPP) mechanism to incentivize disclosure of cartels.  The LPP mechanism was introduced to incentivize an existing lesser penalty applicant in respect of a cartel to give full true, and vital disclosures about another cartel, hitherto not in the knowledge of the CCI.

To further  widen  the  scope  of  cartel  investigation,  Hub  &  Spoke mechanism has been incorporated by introducing the proviso in Section 3(3) of  the  Competition  Act,  2002  through  the  Amendment    Act,  2023  which provides  that  an  enterprise  or  association  of  enterprises  or  a  person  or association of persons though not engaged in identical or similar trade shall also be presumed to be part of the agreement under this sub-section if it participates or intends to participate in the furtherance of such agreement.

- (c) The  Competition  Act,  2002  prohibits  anti-competitive  agreements (Section  3),  abuse  of  dominant  position  (Section  4)  and  provides  for regulation of combinations i.e., mergers and acquisitions (Sections 5 & 6). The Competition Commission of India (CCI) has been established under the Act  to  enforce  these  provisions  and  empowers  CCI  to  issue  appropriate remedies for such anti-competitive behavior.  Since its inception, CCI has been enforcing the Act and promoting fair competition in the markets.  It has issued  various  decisions  and  orders  against  firms  that  have  violated  the provisions of the Act and has imposed penalties and issued other remedies on firms engaging in anti-competitive conduct.

Further, CCI, through its enforcement and advocacy mandate, seeks to promote  and  sustain  competition  in  the  markets,  besides  carrying  out market corrections to eliminate distortions.

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