Penalties Under Competition Act 2002

Penalties under the Companies Act 2002 are:

Commission can whole sole set up an enquiry to see and judge the compliance of various orders under Competition Act 2002, by a business entity. In case the person or entity fails to comply with the orders and/or directions set up under the Competition Act 2002, he is liable to be punished with a monetary fine which could extend up to one lakh rupees for each day of non-compliance. However, this penalty cannot be more than ten crore rupees in a single instance. This is especially applicable towards sections 27, 28, 31, 32, 33, 42A, and 43A of the Competition Act 2002. In case the person breaches the orders and directions of the Competition Act 2002 under subsection (2) of Section 42, then he shall be punished with imprisonment for a term which may extend up to three years and /or with a monetary penalty of twenty-five crores as the Chief Metropolitan Magistrate of Delhi may deems fit.

However, a person or entity under this Act is empowered to make an application to Appellate Tribunal about recovery of compensation for any loss or damage that have been done due to such a non-compliance by another person or entity. And the Commission then can either approve, sanction or exempt the non-compliant company in this relation and order them to fulfill the losses.

1. Penalty for failure to comply with the directions of commission and Direct General-

In any case, if a person or entity fails to comply with the direction given by the Commission under the sub-section 2) and 4) of section 36 or the directions given by the Director General while exercising the powers referred to in sub section 2) of section 41, and that too without any reasonable cause, then such a person will be punishable and shall have to fulfill a fine which could extend up to the sum of one lakh rupees for each dayof non-compliance. However, this sum of penalty could not exceed one crore rupees.

2. Penalty for non-furnishing of Information on Combinations-

In case any person or entity fails to give notice to the Commission under sub-section (2) of section 6, then such a Commission shall be imposed by a penalty which may extend up to one percent of the total turnover of the assets of such a combination.

3. Penalty for making false statement or omission to furnish the material Information-

In case a person or a party makes a statement which is false in any material or they know that they are furnishing a false material and/or omits to submit the material towards compliance of the Competition Act 2002, then such a person is liable to a penalty of not less than fifty lakh rupees and it may extend maximum to one crore rupees as may be determined by the Commission.

4. Penalty for the Offences in relation to furnishing the Information-

In case a person who is required to furnish information under the Competition Act 2002 in form of any or documents or any other kind and makes a statement which he knows is falls and/or omits some of the material information, or willfully alter them or try to suppress or destroy any such document then such a person is liable to be punished with a monetary fine which may extend up to one crore rupees.

Dive Deeper:
What is Competition Commission of India?
Objectives of Competition Act