In a stern warning to companies indulging in anti-competitive practices, fair trade watchdog CCI has said the enterprises must understand it is keeping an active vigil and any penalty is not "an end in itself".
Asserting that recovery of fines is only incidental in the overall efforts to curb anti-competitive business practices, Competition Commission of India (CCI) Chairman Ashok Chawla said the penalties are imposed as a deterrent and should serve as a signal to the companies to mend their ways.
"Penalties are only a deterrent and is a signal to other enterprises to try and change their behaviour. It is not an end in itself, it is a means to an end," Chawla said.
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"What is really important is that once there is a feeling that there is a body which is actively looking at the potential and possible violations of the Competition Act, and it is better not to fall foul of that, then the culture of compliance with competition laws will be more widespread," Chawla told PTI in an interview.
He also dismissed suggestions that a poor recovery of fines imposed by CCI could be a dampener for the regulator as many companies end up getting stay orders on the penal action.
"The curbing of (anti-competitive) practices is only partly depend on the monetary penalty.
"Penalties are only a deterrent and is a signal to other enterprises to try and change their behaviour. It is not an end in itself, it is a means to an end," Chawla said.
CCI has managed to recovery less than one per cent of the over Rs 866 crore penalties imposed by it on 153 entities for fair trade norm violations.
