INESSLAW

(b) If the person omits any material fact Which he; h

. to the case
rial s e ItO.o\\>s.
(c) If the person changes, suppresses, or . destroy 'slli
which is required to be furnished out of his/hers ao.y <:lo
. . owo. fr (!llll\
SECTION 46: POWER TO IMPOSE LESSER PENAL'!'\> ee \\,·l))

Section 46 empowers the CCI to impose a lesser Penalty

or individual than what amounts are mentioned for h On_ the ll
fled in the Act. However, the CCI can ~xe~cise . t h is Po,a,er oni''s s,.
l"ena1r Ell's g.t t be CC
is satisfied that any producer, seller, distributer, trader. Y% o tbe---
vider included in any carte1on wh 1.ch there are a11egation ' 0 r serv•''• E! artY tc
of Competition Act has made full and true disclosure in tbs of VioJQt'1
these alleged violations. Also, d isc
. 1osure of sue h inforination
vital to impose upon such person a lesser penalty.
. e resP,,tl
lllllst
.. - .
s. ~th the
1111

The CCI cannot impose a lesser penalty in the following ca,,,.

If the CCI receives the report of investigation bet ·
disclosures are made; or
. ore sll nis
If the person who is making the disclosure does not cont·
Cooperate with the CCI till the proceedings come to an •nd"'u,
If the CCI is satisfied that a producer, seller, distributor, !rad
. .~
service provider which is a part of a cartel had not cornpu,/".
the
or
condition on the basis of which the lesser penalty '-'as imp,;
c ,·
Cl
If the CCI is satisfied that a producer, seller, _distributor, trade;
service provider which is a part of a cartel had given false evidenc,, ADUJ
011)
Where the CCI realises that the information provided is not vii'
and thereby the person providing the information may be liable conteste
be tried in reSpect of that offense. r
(herein
"bitors,
SECTION 47: CREDITING SUMS REALISED BY WAY OF PENALTI
TO CONSOLIDATED FUND OF INDIA sociatio
opposite
Section 4 7 of the Competition Act, 2002 states that the amount I
the CCI receives by imposing.penalties must bi, credited to the cons
idated fund of India. led b~
Tamil
e'Opp
SECTION 48: CONTRAVENTION BY COMPANIES
on Ac·
Section 48 of the Competition Act, 2002 states that when there is aP the i:
son committing any contravention of any of ihe provisions of this .
or of any rule, regulation, order, or direction issued under this Act,
1
company; th.en, every person who is in charge of and was responsi •
t? the company for the conduct of the business of the company ~t 1 onan1
li?1e when !he contravention was committe\i along with the busme ~'!'"..;!"'~iati
will be considered as guilty of the contravention. The CCI will carTY 197
 342 BUSINESS LAW

ces
Renewal of licenses 1 cc
NOTE Inspection of factories otlf
To renew the licence o·"f a·· - - - motto s c•
factory, the following documen
should be submitted: . ts 1Jl"e
s tl]
• An application in form num- KEY PROVISIONS AND FEATU.REs OF Tlfb 95
9.2.2 .,. -r .,.
..
ber 3 (dup/icateJ rs7 -
C

• Treasury receipt cha/Ian with Since the object of the _Factories Act, 1948 is to Protect ihe . or~e1
prescribed fees k
• Original licence wor ers irr om exploitation, the Act recommends certain
. . f k stahltJ.tei-.,~st :F
sa,etY,
'" wel'"are
,; and working hours o wor, ers, apart fron, ••dar..i , "'
}lour:
• Process flowchart .. The main provisions of the Factones Act, 194 a O "et
~ 0 r1
v1s10ns.
C _ . d . 8 re as1folJo
ulsory approval, 11cens1ng an registration of" 1 orlc:
omp . 1· b '" tacto
is mandatory to obtam a icence e,<?re a factory is start 11,, .
St of,
t Government may make rules related to the Ii :d, 1
ae . ·1·1aI step towards the
censu, g, str
;~Pt,
registration of factories. As an mi
As per Section f8, it is important
for licensing, detailed plans or any class of description of
ns .
to make proper arrangements gar
for cool drinking water during
Lmust be submitted to the Chiefinspector or the State Gov Clo
iummers, if the factory employs ater. the plans and specifications of a factory and its lo er?llle
'fh•
more than 250 workers. P
'
resented . d 1orma
in the reqmre '" tm
. wn·t·mg to the Chiefcation
I
or the state government 1or Its regis ra Ion. .,.
'" . . t t· nsPec e: .
Health measures: Factories Act, 1948 is intended to enSUte h
. the conditions in facto'."'~• do not affe'.'t the health of Work1 gra
etai/s regarding the provisions adversely. Various prov,s,ons for cleanhness, dzsposaJ of \Va, kec
'safety of workers in the and effluents; ventilation and teml'.erature, lighting, •rti6e nd,
ctories Act 1948, can be taken humidification, spittoons, overcrowdmg, dust, fumes, drink; th•
m the following link:
water, latrines and urinals to ensure good Working conditions
,s://labour.gov.in/sites/ the workers. It is important to repaint the inside Walls, Partitio
IU/t/files/Factories_Act_ 1948.
ceiling or top of rooms, passages and staircases once in eve
years. No person Uj the factory shall be allowed to spit at any pl
rupeesthan
other be paid. In case of violation, fme of not more tha
shallspittoons.

Safety measures: · FOllowing are the some of the import

B
IS Act 1948, it is Provisions under these sections regarding the safety of workers
Itta appoint asafety
rths occupier In case: Dangerous
curely machinery such as electric generators must be
fenced.
, 1000 or more warke 0
linarily emp/oyed
Work n or near machinery in motion must be carried out o
thfi stats gavernms ,-
opinion that man clothes.
by specially trained adult male Workers wearing tightly fitti
rProces, lnvo
of risks
'
All floors,_ steps, stairs, passage and gangways shall be of sou
.c ~n:ruhctJon and Properly maintained. Handrails shall be P
tvi
0
t he e Place
w erewhere
necessary.
th Safe k means
• of access shall be provid
No Worker shall be e Wor
d er W11l carry on any work.
h
un
. IllJury.
• . ma e to carry a. load so heavy as lo ca
 . ration amongst themselves as the 1'd
sales vo1ume et ea be·
control over the mark . ltl.g .
· tomer/products/territories or a11t1
Allocate t:u:r market-sharing: At times, two o~atket d.'
agreem;n into an agreement with one another ~ore bll./Vis1 •
.-
~aty enseorf customers they serve, the products tho share ~1:s
1n erm h ey p ••1a
the territories they serve. In _ot er word~, businesses rocill.1!1: t~ I
.
, .
their sales of goods and services to certa1? geographi;iay tes:. • •• ••-
•
Iea ds to the development of monopoly which is an ant·1-corn_
areas Ii
·
activity. \ · 1)1:tit\ •
8.4.3 CARTELS
A cartel refers to an associat~on of organisations that Work in th
industry and they collude with each other for preventing - e_ sa
NOW · · · compe t·t·
reducing or ehminabng · agre' re str1l!t'1n
1 10n. S uc h a co11us1ve
·ganisations . . . . . ernent ll\
gement are
be exphc1t or tacit in nature.
Businesses involved in a cartel take decisions or steps whi h
help them to dominate the market_ and control market pri~es~;~
collusive decisions lead tq the creation of a monopoly or a duopoly.
acq
Most cartels and collusive agreements ar~ illegal. When cartel the sup]
able ~o convert the perfectly competitive market into a man: a
or a duopoly, they gain control over all critical business areas ~: the follo~
as pricing and market contr_ol. Collusive agreements usually lead
anti-competitive practices such as price-fixing and market-sharin ixing
Such practices are aimed at reducing output and raising prices. agreem
Cartels may also indulge in making decisions that lead to misalloc ive dist
tion of resources. For instance, cartels may willfully create an artifici
shortage of goods or servi.ces demanded by customers.

Most cartels are illegal; however, export cartels in most countries

at international level are legal. For example, the .Organfaation oft
Petroleum Exporting Countries (OPEC) is a legal international cart

8.4.4 BID RIGGING

Bid rigging is an illegal practice or agreement created between diffe

t ent organisations or persons that are engaged in production of ide~
le
cal or similar products-or trading of services which leads to eliminat
IS or reducing competition for bids. It adversely affects or manipula:
st the bidding process. Under bid rigging different competing parb Ill
collude with each other and choose a wi~ner of the bidding.process
e th
making all competitors submit uncompetitive bids.
on~
Rigged bidding creates an illusion of real bidding even though _t to
!
result 0 bidding is already predetermined. Due to this manipU~~~~
competitors do nnt a,:i.t r... . . - L - - __ I' •• • •• _ JliP bl !-
C01
 case of the complainant. If the CCI agrees With th
of the DG, it shall close the matter and pass nee • ••co'¾,
"t examining
f tl 'f., a,,·er
ever,, . . all the objections
. -, o,deti...i"'I
and su essar-,.
CCI . , h .
o 1e opinion t at the matter reqmres further inv . 011s tLe~·
ggesti
may order the DG to conduct
. further enquity.est1g
If ha t·on,
' •1elQ
DG finds that there has been a contravention of the P 1 •. '•!lo~"'1
1

Competition
d1 Act, then the CCI may order further inqr~v1sio%i)!lf1
nee or sue h further inquiry.
f' Uii-y if .t fe !lf t
1
. eISt
8.5.6 ANTI-COMPETITIVE ACTS TAKING PL,\cl!
, OUTSIDE INDIA BUT HAVING ADVERSI! l!Fp
COMPETITION IN INDIA (SECTION 32) l!C]: O~
The CCI has the power to inquire into an anti-competitiv
or agreement that involves the abuse of d ommant
. Positioe agre'""
hment with respect to combinations I·r sueh an agreement;n ora . gr
ave an appreciable adverse
' e r·e ·t
1ec on compe ion
t"t•
1 in th s11ke1Y
market in India. This is applicable even if: e telev

An anti-competitive agreement has been entered into out .

India
. Side
Any party to such agreement is outside India
ualorc
Any enterprise abusing the dominant position is outside India (orca
A combination has taken place outside India clia. J

Any party to combination ·is outside In~ia al (

dea
Any other matter or practice or action arising out of such agre,in h C
or dominant position or combination i~ outside India el,
di1
8.5. 7 JNFORCEMENT POWERS OF CCI .

vu~ The CCI has the authority to impose monetary penalty on a defaulti
party/person. If a person fails to pay the monetary penalty impos
J
1 the CCI has the authority to recover such penalty in accordance
~lud{ng .
1
the regulations specified by regulations.
ilionlawJ,
lffltmav
fthe CCI,
:omfJfllition ff SELF ASSESSMENT QUESTIONS

J 9. The Competition Commission of India (CCI) is the regulalo

authority th<:1t oversees _____ in the Indian market.
10. No member of the CCI can remain a member of this body aft
reaching 65 years of age. f
a. True
b. False t·