Competition panel member in a limbo

The fate of the existing member of the Competition Commission hangs in the balance, with the company affairs ministry and the law ministry having sharp differences on the matter.

The Union Cabinet, which last month approved the Competition (Amendment) Bill for introduction in Parliament, had left the issue to be resolved by both the ministries.

The company affairs ministry is of the view that the service conditions of a member who had been selected as per the process prescribed in the Competition Act cannot be altered.

The law ministry, on the other hand, is of the opinion that the Amendment Bill to be placed in Parliament should specifically provide for review of selection of an existing member by the selection board.

"The law ministry wants the Amendment Bill to specify that the selection of the existing member would be open to review. The company affairs ministry does not want any such provision to be brought into the Amendment Bill," a senior official in the Ministry of Company Affairs told Business Standard.

The matter assumes importance as the Competition Act, 2002 has already been subject to long delay due to litigation in the Supreme Court over its legal sanctity. Although the government is keen to see the Bill through in the Budget session, both the ministries have stuck to their respective stance.

The Competition Commission, at present, has one member, who has a remaining tenure of three years. Only one member could assume office under the Competition Act before a writ petition was filed against the legislation.

The Amendment Bill, which specifies various changes to incorporate the view of the Supreme Court, also provides for a selection process for members, but it is being debated whether the selection of an existing member can be subjected to review.