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Cci Introduces Leniency “Plus” Regime In India- Will It Suffice March 1, 2024
Published in: Articles
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India’s fair market watchdog, Competition Commission of India (“CCI”), after due consultations, has finally notified the “leniency plus” mechanism to further strengthen cartel detecting framework in India.
CCI, in exercise of its powers underpowers conferred by sub- section (1) and clauses (ga),(gb) and (gc) of sub-section (2) of section 64, read with section 46 and clause (b) of section 27 of the Competition Act, 2002 (12 of 2003) ( “the Act”) , has notified the Competition Commission of India (Lesser Penalty) Regulations, 2024 (“2024 Regulations”) through a Gazette Notification dated 20 February 2024.
Under the 2024 Regulations, the leniency plus facility has been introduced to provide a leniency applicant (“existing applicant”) of an existing cartel, an incentive to share information about a second cartel that is not known to the CCI. Under this facility an existing leniency applicant will get an additional reduction in monetary penalty up to 30% of the penalty imposed with regard to the first cartel, besides obtaining benefit of reduction in penalty up to or equal to 100% in respect of newly disclosed cartel. Further, the 2024 Regulations have bought certain corresponding changes in the Competition Commission of India (Lesser Penalty) Regulations, 2009 (“2009 Regulations”) now repealed by 2024 regulations.
Legal Framework of newly enacted leniency plus mechanism
The new leniency plus regime has been introduced in furtherance to sub-section (4) to Section 46, which was inserted through the Competition (Amendment) Act, 2023. Under this mechanism, if during the course of cartel investigation any enterprise , which is part of a such cartel makes disclosure of another cartel which has alleged to have violated Section 3 of the Act, and pursuant to such disclosure the CCI is able to form Prima facie opinion under sub-section (1) of Section 26 of the Act about existence of another cartel then in such situation such existing applicant would be considered as eligible for the leniency plus benefit and would be granted additional monetary reduction in penalty to be imposed by CCI., provided that such enterprise or an individual , involved in the cartel on behalf of the enterprise , is already a leniency applicant in the previous cartel.
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Article authored by:
Mr. MM Sharma
Head of Competition Law
E: [email protected]
and
Mr. Ankit Singh Rajput
Associuate
E: [email protected]
