Competition Commission faces staff crunch

Even as Parliament has passed the long-pending Competition (Amendment) Bill, 2007, that empowers the Competition Commission of India (CCI) to act as the competition regulator, the commission is facing a severe staff crunch.

The Bill, moved by minister of corporate affairs Prem Chand Gupta, was passed in the Rajya Sabha today amidst an uproar by opposition NDA members over the Indo-US nuclear deal. Last week, the Lok Sabha had cleared the Bill and sent it to the upper house for its approval.

Against an initial requirement of 120 professionals, the CCI currently has only 26 staffers, including member and acting chairman Vinod Dhall.

As against this, Indian Institute of Management-Bangalore, in a study about the ideal structure of the Commission, had recommended a strength of 480 professionals, including lawyers, financial analyst and economists, for the Commission.

This was based on an analysis of the staff structure of various Competition Commission's overseas.

When asked about the shortage of staff, Dhall said, "We have already sent our proposal to the government. We are awaiting its approval, as it is critical and urgent requirement for actual enforcement work of the Commission."

In the event of this clearance taking time, delays may occur and it is likely that the Commission would start functioning only by mid-2008.

Dhall said the CCI would hire trained professionals, who are experts in fields like law, finance, and economics.

"We have asked the government to sanction our plan to hire and train them and start operations of the Commission." The Competition (Amendment) Bill, which will shortly be notified as an Act, says the CCI would have four members, with the chairman being the Chief Justice of India or his nominee.

The Bill also has a provision for a three-member quasi-judicial body Competition Appellate Tribunal. It would be headed by a person who is or has been a justice of the Supreme Court or the chief justice of a High Court and would hear appeals against any direction issued by the commission.

The CCI will replace the Monopolies and Restrictive Trade Commission (MRTPC), which dealt with anti-competitive practices.

However, the MRTPC would continue till two years after the constitution of CCI, for trying all pending cases under the MRTP Act, 1969, after which it would be dissolved.

Under the new law, companies will have to inform CCI about mergers and acquisitions within 30 days. Companies could be penalised in case they fail to do so.

It also seeks to empower the CCI to impose penalty of up to Rs 25 crore or up to three-year imprisonment or both in cases of continued contravention of its orders if the Chief Metropolitan Magistrate deems fit.