The Competition Commission of India (CCI) has moved a significant step near to getting statutory powers with the Lok Sabha clearing the relevant Bill on Thursday.
However, the competition watchdog may still take at least a year before it becomes operational, according to its acting chairman and member Vinod Dhall.
The Bill is one of the very few that has been cleared in the tumultuous monsoon session, till now. The Bill was passed amid uproar in the House over the Indo-US nuclear deal, without any debate. It will now be tabled in the Rajya Sabha.
Dhall said new appointments have to be made and the enforcement sections of the Bill have to be notified. “The CCI is to have three members and the government has to appoint two more. Apart from this, the government has to approve posts within the commission so that we can take up recruitments,” he said.
With the formation of CCI, Indian companies engaging in major mergers, acquisitions and amalgamations will need to report to the body within 30 days of the deal or face hefty fines by the government. The new Bill makes it contingent for notification of combinations (M&As, amalgamations, dominant positions etc.) within 30 days to the CCI above prescribed threshold levels. The Bill stipulates a penalty of up to 1% of the total turnover or the assets, whichever is higher, on a person or enterprise that fails to inform CCI within 30 days.