Companies undertaking mergers and acquisitions within India with assets worth more than Rs 1,000 crore or a turnover of Rs 3,000 crore, will now have to mandatorily inform the Competition Commission of India (CCI) within 30 days of signing the deal.This measure is part of the new Competition (Amendment) Bill, 2007 introduced in the Lok Sabha today by Minister of Corporate Affairs Prem Chand Gupta. The bill seeks to give statutory powers to CCI, which was established in 2003, and aims to ultimately replace the Monopolies and Restrictive Trade Practices Commission (MRTPC).The bill, which will replace the existing Competition (Amendment) Bill, 2006, provides for CCI as a market regulator for preventing anti-competitive practices.It also seeks to empower CCI to impose a penalty of up to Rs 25 crore or an imprisonment of up to three-year or both in cases of continued contravention of its orders, if the Chief Metropolitian Magistrate of Delhi deems fit.According to the bill, every entity must inform the commission about mergers within 30 days, otherwise it could impose a penalty of up to one per cent of the total turnover or assets, whichever is higher.MRTPC will continue to deal with the pending cases even two years after the establishment of CCI, and will be dissolved thereafter. However, MRTPC would not entertain any new cases after CCI is fully constituted. Cases pending with MRTPC after two years of setting up of CCI will be transferred to the latter.The selection committee of CCI will be headed by the Chief Justice of the Supreme Court of India. The new bill also suggests that the commission have four members including Secretary (Law) and Secretary (MCA) instead of two at present.
