Companies that refuse to pay monetary penalties set by the Competition Commission of India (CCI) are likely to be tried.
According to a proposal being considered by the government, the CCI may decide to refer such cases to the income tax authorities for recovering tax arrears.
The companies may also be tried under the Income Tax Act if the CCI is of the view that doing so would help recover the penalty faster.
The penalised companies, which default on tax payment, will be considered assessees.
The monetary penalty will be recovered from them as tax due under the I-T Act. Tax authorities will initiate proceedings against the companies, in a manner similar to that used for tax defaulters. The tax recovery officer and the tax recovery commissioner will be responsible for recovering the penalty amount.
The proposal, if accepted, will be included in the planned amendments to the Competition Act. Recovering penalties, as arrears of income tax will, however, be an additional procedure with the CCI, which would be used only if the usual methods used by the commission fail.
Sources said the government hoped the proposal would give more teeth to the CCI and ensure that companies took their
decisions seriously as well as pay up on time.
The CCI can impose monetary penalties on companies in mainly three kinds of cases.
Cases where companies engage in anti-competitive agreements and behaviour, abuse their dominant position in the market or unregulated behaviour by certain ?combinations? for buying shares, acquiring of control and mergers and amalgamation between and amongst enterprises will be tried by the competition panel, once it becomes operational.
In case companies are found guilty, imposing a monetary fine is one of the options with the CCI.
It can also discontinue any anti-competitive agreements or order. Alternatively, it can award compensation to an aggrieved person or recommend a ?division of enterprise enjoying dominant position? to the Centre.