Lok Sabha Question No. 326 (STARRED), answered on 2025-03-24
Subject: Cases of Carterlisation Investigated by CCI
Ministry: CORPORATE AFFAIRS
Asked by: Shri Mukeshkumar Chandrakaant Dalal

## MINISTRY OF CORPORATE AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## STARRED QUESTION NO. 326

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

## CASES OF CARTELISATION INVESTIGATED BY CCI QUESTION

*326.   Shri Mukeshkumar Chandrakaant Dalal:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  the  sector-wise  data  on  the  number  of  cases  of  cartelization investigated by the Competition Commission of India during the last five years;
- (b) the details of the bilateral or multilateral agreements signed by the Government to address cross-border cartelization issues;
- (c) the details of mechanisms in place to monitor and detect instances of cartelization among companies in various industries;
- (d)  the  measures  taken/being  taken  by  the  Government  to  protect small businesses and startups from the adverse effects of cartelization by dominant market players; and
- (e) whether the Government is proposing or taking efficient steps to increase awareness about cartelization and its negative impacts on businesses, consumers and trade associations and if so, the details thereof?

## ANSWER

THE MINISTER OF FINANCE (SHRIMATI NIRMALA SITHARAMAN) AND CORPORATE AFFAIRS

(a) to (e) A statement is laid on the Table of the House.

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STATEMENT REFERRED TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 326 FOR 24.03.2025 REGARDING CASES OF CARTELISATION INVESTIGATED BY CCI

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- (a) Sector-wise data on the number of cartel cases investigated by the Competition Commission of India (CCI) during the last five financial years (till 13.03.2025) is as follows:
- (b) The Competition Commission of India (CCI) has signed Bilateral/Multilateral Memorandum of Understanding (MoU) with Egypt, Mauritius,  Japan,  Brazil,  BRICS  (Brazil,  the  Russian  Federation, People's Republic of China and the Republic of South Africa), Canada, European  Commission,  Australia  and  United  States  Department  of Justice  (DOJ)  for  cooperation  in  the  field  of  competition  law  and policy.  These  MOUs  include  provision  for  enforcement  cooperation between CCI and its MoU partners, subject to their respective legal framework, constraints, enforcement interests and available resources.

| S.No   | Sector             |   Number of cartel cases |
|--------|--------------------|--------------------------|
| 1      | Civil Aviation     |                        1 |
| 2      | Power              |                        1 |
| 3      | Coal               |                        2 |
| 4      | Financial Services |                        2 |
| 5      | Iron & Steel       |                        2 |
| 6      | Railway            |                        4 |
| 7      | Health & Pharma    |                        5 |
| 8      | Misc.              |                       18 |
|        | Total              |                       35 |

In addition, India has signed 14 Free Trade Agreements (FTAs) with its trading partners. Some of these FTAs have a separate Chapter on Competition, according to which each Party shall, in accordance with  its  laws  and  regulations,  take  measures  which  it  considers appropriate against anticompetitive activities, in order to facilitate trade  and  investment  flows  between  the  Parties  and  the  efficient functioning of its market. (c) The Commission has a Division for trend analysis and conducting research in various sectors of the economy to have a holistic view and to detect any anti-competitive activities. (d) 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  disclosures  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. (e)  CCI,  through  its  enforcement  and  advocacy  mandate,  seeks  to promote and sustain competition in the markets by conducting market studies  and  advocacy  events,  imparting  training  about  competition issues besides carrying out market corrections to eliminate distortions. The CCI conducted 1446 advocacy programmes during the last five financial years (till 19.03.2025).

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