BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

Competition panel moots govt nod for mergers

The committee on formulation of competition policy in the country headed by Commerce Secretary S V S Raghavan has submitted its report to the Prime Minister Atal Bihari Vajpayee. The committee has come up with sweeping structural, legal and policy changes.

The committee has suggested that the Monopolies and Restrictive Trade Practices Commission, or MRTPC, be replaced with an omnibus Competition Commission with powers to scrutinise mega mergers and decisions of all other regulatory bodies.

It has also recommended framing of a competition law, dereservation of items under small scale industries in a phased manner and privatisation of all public sector enterprises, except in defence. It has recommended enactment of an Indian Competition Act, the draft of which it would submit to the government later.

It has suggested that under the proposed Indian competition law, a competition law authority christened as Competition Commission of India, or CCI, may be established to implement the Indian Competition Act.

It will hear competition cases and also play the role of competition advocacy. The committee has suggested that all the cases of unfair trade practices before the MRTPC may be transferred to the concerned consumer courts under the Consumer Protection Act,1986. The pending monopolies and restrictive trade practices cases in the MRTPC may be taken up for adjudication by the CCI from the stages they are in.

The committee has suggested that the CCI would be a multi-member body representing by the persons of integrity from judiciary, economics, law, commerce, accountancy, public affairs and administration. The commission's investigative, prosecutional and adjudication functions will be separate.

The committee has suggested headquarters of the proposed commission to be housed in a metropolitan city other than the national capital with permanent benches at Delhi, Calcutta, Bombay and Madras with further benches to be decided by the government from time to time. Two members of the CCI will constitute the mergers commission.

The CCI will have not less than ten members including chairperson. Each bench would have a judicial member. The trial before the CCI would be summary in nature. It would also have powers to review the orders of other regulatory authorities on the touchstone of competition. All complaints would be made only to the CCI. The Director General (Investigation And Prosecution) would only take up cases referred to him by CCI. He will not have suo moto powers of investigation.

The committee has recommended that its report be dealt with as a whole and not in parts as competition dimension is the veneer running right through.

The committee has suggested several pre-requisites for a competition policy, contours of competition policy, do's and don'ts, agreement among enterprises, abuse of dominance and mergers to be dealt with by the proposed commission.

The government has also decided that the report of the committee would be available on the website of Department of Company Affairs that is www.nic.in/dca for generating public debate on the proposed competition law from the corporate sector in general.

UNI

Business