The competition act 2002

The competition Act 2002

The competition Bill became an act on 13Jan 2003. It was amended in 2007 and 2009. The act extends to whole of India except J&K.   It provides the establishment of :-

1. Competition commission of India :- which is the expert body and function as a market regulator for preventing anti-competitive practices.
   1. Performs advisory and advocacy functions also.
   2. Can also impose penalty in certain cases.
2. Competition Appellate Tribunal  which is constituted of 3 members , headed by a person who had or has been a judge of SC/HC   to hear the appeals and adjudicate upon them.
   1. It can also pass order for recovery of compensation .
   2. Or for any other loss occurred due to contravention of the provisions of the act.

Competition commission of India  :-

Intro:_

Section 7 defines the competition commission of India. It has perpetual existence. Head office place is defined by the CG.

Composition:- section 8

Competition commission should consist of minimum 2 members and maximum 6 members.

The chairman and other member should have :-

• Ability , Integrity and wisdom
• Atleast 15 years experience in International Trade, business, economics,management, Industry  etc…
• Chairman and other members would be selected by central govt from the panel of names recommended by selection of committee.
• The selection committee comprises of  :-
  •  Chief justice of India or his nominee :- chairperson
  • Secretary in ministry of corporate affairs :- Member
  • Secretary in  ministery of law and justice :- members
  • 2 other members who have special expertise with 15 years of experience

Term of the office of chairperson and other members ( section 10)

1.  Term will be of  5 years and the same are eligible for re-appointment
2. Any vacancy caused by resignation or removal or by death will be filled by fresh appointment in accordance with section 8 and 9 , ( section 11).
3. The senior most member will act as chairperson until the new chairperson appointed in that case.
4. Any person can leave the office by giving notice in writing for resignation except in case of CG grants that the person should hold office for atleast 3 months or until any successor is appointed or until the expiry of his term or whatever is earlier.
5. Central govt may remove chairperson or any other member by order , if it finds that :-
   1. The person is termed as insolvent
   2. Caught red-handed in moral turptitude
   3. Holding any other office during his tenure as paid employment
   4. Acquired financial or other benefits of his post.

Restrictions  on employment of chairperson or other members in certain cases ( section 12)

The chairperson or any other member can’t hold office for a period of 2 years from the date , they cease to hold office,  in which the the enterprise / management/administration was a party preceding before the commission.

But this rule don’t apply to  any employment under CG/SG/or any other statutory authority/local authority or any other established under these acts or a govt company as defined by section  617 of companies act 1956.

Regards

Renu