Mergers should be intimated to Competition Commission: Govt

New Delhi, Aug 29 (UNI) The government today introduced in the Lok Sabha the Competition (Amendment) Bill, 2007 which seeks to empower the Competition Commission to impose on companies a penalty of one per cent of their total turnover or assets, whichever is higher, for failing to intimate the commission about mergers within 30 days.

The proposed law would enable the establishment of the Competition Appellate Tribunal which would be a three-member quasi judicial body headed by a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court to hear and dispose of appeals against any direction issued by the commission.

The Competition Commission of India was established on October 14, 2003 but could not be made functional due to filing of a writ petition before the Supreme Court.

Disposing of the petition on January 20, 2005, the apex court had held that if an expert body was to be created, it might be appropriate for the government to consider the creation of two separate bodies, one with expertise for advisory and regulatory functions and the other for adjudicatory functions.

The Bill, introduced by Corporate Affairs Minister Prem Chand Gupta, also aims at continuation of the Monopolies and Restrictive Trade Practices Commission (MRTPC) for two years after the constitution of the Competition Commission for trying pending cases.

MRTPC would not entertain any new cases.

The House allowed the withdrawal of the Competition (Amendment) Bill, 2006 which had been referred to the Standing Committee. The new Bill incorporates the suggestions of the committee.

UNI