ESTABLISHMENT OF COMPETITION COMMISSION OF INDIA AND

DIRECTOR GENERAL
It was established by the Central Government under Section 7 of the
Competition Act 2002 with effect from 14th October 2003. CCI consists of a
Chairperson and 6 Members appointed by the Central Government. It is the
duty of the Commission to eliminate practices having adverse effect on
competition, promote and sustain competition, protect the interests of
consumers and ensure freedom of trade in the markets of India.
The Commission is also required to give opinion on competition issues on a
reference received from a statutory authority established under any law and
to undertake competition advocacy, create public awareness and impart
training on competition issues.
Establishment of Commission (Section 7 of Competition Act 2002):
a) It provides for the establishment of commission by Central
government.The Commission shall be a body corporate by the name
aforesaid having perpetual succession and a common seal with power,
subject to the provisions of this Act, to acquire, hold and dispose of property,
both movable and immovable, and to contract and shall, by the said name,
sue or be sued.

b) The head office of the Commission shall be at such place as the

Government may decide from time to time. Currently the head office of the
Commission is in Delhi. But the Commission may establish offices at other
places in India
Composition of Commission (Section 8)
The COMPETITION ACT 2002 initially provided that the commission shall
consist of a chairperson and not less than two and more than ten other
members to be appointed by the Central Government It was only vide the
Competition (Amendment) Act, 2007 that the upper limit of the strength was
reduced from ten to six members. This reduction was carried out as the
Government did not contemplate the creation additional benches as
suggested by the Raghavan Committee, Section 8(1) of the Act provides that
CHAIRPERSON
the Commission shall consist of a Chairperson and not less than two and not
more than six other Members to be appointed by the Central Government.
In 2018, the Cabinet has approved reducing the size of the Commission
further to one chairperson and other three members .Section 8(2) of the Act
further provides that the Chairperson and every member shall be person of:
(i) Ability,
(ii) Integrity,
(iii) Having special knowledge,
 (iv) 15 years of professional experience

In international trade, economics, business, commerce, law, finance,

accountancy, management industry, public affairs or competition matters
including the competition law and policy which is in opinion of the Central
Government is useful for the purpose of a fair competition in the relevant
market. Section 8(3) makes it clear that the Chairperson and the Members of
CCI shall be whole time in service.

Selection committee for chairperson and members of CCI:[Section

9) : Section 9 of the Act provided that the appointment of Chairperson and
Members of the CCI shall be made by the Central Government on the basis of
names in a panel and the recommendations made by the duly constituted
selection committee. In terms of section 9, the composition of selection
committee shall be the following:-
(i) Chairperson: The Chief Justice of India or his nominee.
(iI) Members: Total four members:- (a) Member: the Secretary in the
Ministry of Corporate Affairs, (b) Member: the Secretary in the Ministry of
Law and Justice, (c) Members: two experts of repute who have special
knowledge of, and professional experience in international trade, and as
other qualification prescribed in section 8(2),

Term of Office of Chairperson and Other Members [Section 10):

Section 10 of the Act provides that the term of office of Chairperson and
other Members shall be five years. However, no Chairperson or any other
member shall head after he/she attains the age of 65 years In case, the
Chairperson is not able to discharge his/her functions, the senior most
member shall discharge the functions of the Chairman.

Resignation, Removal and Suspension of Chairperson and Other

Members [Section 11): Section 11 of the Act deals with the resignation,
removal and suspension of chairperson and other members. A Chairperson
or Member may be removed, if (1) at any time has been adjudged as an
insolvent, or (ii) has engaged at any time, during his term of office, in any
paid employment, or (ii) has been convicted of an offence which, in the
opinion of the Central Government, involves moral turpitude; or (iv) has
acquired such financial or other interest as is likely to affect prejudicially his
functions as a Member; or (v) has so abused his position as to render his
continuance in office prejudicial to the public interest, or (vi) has become
physically or mentally incapable of acting as a Member.

Restriction on Employment of Chairperson and other Members

[Section 12]: Section 12 of the Act provides that the Chairperson and other
Members shall not, for a period of two years from the date on which they
cease to hold office, accept any employment in, or connected with the
management of administration of any enterprise that has been a party to a
proceeding before the Commission under this Act.
DIRECTOR-GENERAL [SECTION 16]
The term "Director Generaf" has been defined in section 2(g) of the
Competition Act, 2002 and his appointment is made in accordance with the
provisions of section 16 of the Competition Act, 2002
Section 16(1) of the Act provides that the Central Government may by
notification appoint a Director General (DG) for the purposes of- (a) assisting
the CCI in conducting inquiry into contravention of any of the provisions of
the Act, and
(b) performing such other functions as are, or may be, provided by or under
this Act.
The office of Director General is responsible for investigations under
Competition Act 2002 in India. The Director General is appointed by Central
Government but reports to the Commission
AAPPOINTMENT OF DIRECTOR GENERAL [SECTION 16].
The Central Government may, by notification, appoint a Director General for
the purposes of
1. Assisting the Competition Commission of India (hereinafter ‘Commission’)
in conducting inquiry into contravention of any of the provisions of the
Competition Act 2002 (hereinafter ‘Act’) and
2. For performing such other functions as are, or may be, provided by or
under the Act.
 The number of other Additional, Joint, Deputy or Assistant Directors
General or such officers or other employees in the office of Director
General and the manner of appointment of such Additional, Joint,
Deputy or Assistant Directors General or such officers or other
employees shall be such as may be prescribed.

 Every Additional, Joint, Deputy and Assistant Directors General or such

officers or other employees, shall exercise his powers, and discharge
his functions, subject to the general control, supervision and direction
of the Director General.

 The salary, allowances and other terms and conditions of service of the
Director General and Additional, Joint, Deputy and Assistant Directors
General or, such officers or other employees, shall be such as may be
prescribed.
  The Director General and Additional, Joint, Deputy and Assistant
Directors General or such officers or other employees, shall be
appointed from amongst
1. persons of integrity and
2. outstanding ability and
3. who have experience in investigation, and
4. knowledge of i. accountancy, ii. management, iii. business, iv. public
administration, v. international trade, vi. law or vii. economics and
5. such other qualifications as may be prescribed.
Duties of Director-General [Section 41]
The Act devotes Chapter V entitled 'Duties of Director General', which has
only one Section ie., Section 41 dealing with the powers of the DG to
investigate contraventions under the Act as ordered by the CCL.
Broadly for the purpose of investigation, the DG has been vested with (1)
certain powers of the Civil Courts under the Code of Civil Procedure, 1908
and (i) powers of Inspector relating to production of documents and
evidences and seizure of documents under the Companies Act, 1956 The
Regulations framed under the Act, more or less state the powers of the DG
during investigation in taking evidence on record including issuance of
commissions for examination of witnesses and document However, the Act
also provides that every procedure shall be guided by the principles of
natural justice.
Section 41 provides as follows:-
Section 41(1) provides that the Director General shall, when so directed by
the Commission, assist the Commission in investigating into any
contravention of the provisions of this Act or any rules or regulations made
thereunder.
Section 41(2) provides that the Director General shall have all the powers as
are conferred upon the Commission under sub-section (2) of Section 36.
Section 41(3) provides that without prejudice to the provisions of sub-section
(2), sections 240 and 240A of the Companies Act, 1956, so far as may be,
shall apply to an investigation made by the Dirvet or any other person
investigating under his authority, as they apply to an inspector appointed
under that Act.
Explanation: For the purposes of this section,-
(a) the words "the Central Government" under section 240 of the Companies
Act, 1956 shall be construed as "the Commission":
(b) the word "Magistrate" under section 240A of the Companies Act 1956
shall be construed as "the Chief Metropolitan Magistrate, Delhi
POWERS OF THE DIRECTOR GENERAL

Section 41 of the Competition Act, 2002 (Competition Act) empowers the

Director General (DG) with wide-ranging powers to assist CCI, when directed
to do so, in investigating into any contravention of the provisions of the
Competition Act or any rules and regulations made thereunder. In terms of
Section 41(2) of the Competition Act, the DG, while carrying out the
investigation, shall have all such powers of a "Civil Court" under the Code of
Civil Procedure, 1908 as are conferred upon CCI under Section 36(2) of the
Competition Act.

1. The duty of party being investigated is to render cooperation/

assistance, preserve, and produce requisite information.

Section 41(3) of the Competition Act sets out a two-fold duty of all officers,
other employees, and agents of a party [ that is under investigation. First, the
duty to preserve and furnish to the DG, or any person authorised on this
behalf, all information, books, papers, and other documents/ records of, or
relating to, the party in their custody or power. Second, the duty to render all
possible assistance in connection with the ongoing investigation to the DG.

Section 41(4) of the Competition Act clarifies that the DG may require any
person other than a party referred to in Section 41(3) to furnish additional
information before the DG or any other authorised person if deemed relevant
or necessary for the purposes of the investigation.

2. Retention of the documents : In terms of Section 41(5) of the

Competition Act, the DG is empowered to retain in his custody any
information, books, papers, other documents, or records produced under
Section 41(3) or Section 41(4) for a period of 180 days. Beyond the 180-day
timeline, the DG is mandated to return the documents to the person by
whom or on whose behalf the documents were produced.

A proviso to Section 41(5) of the Competition Act adds that the DG, if
needed, is empowered to call for and retain documents for a further period
of 180 days in addition to the originally stipulated 180 days by way of an
order in writing. Also, the party or on whose behalf the documents were
produced has the option of procuring the certified copies of such documents
at their own cost.

3. Examination on oath : In the course of investigation, the DG may, in

terms of Section 41(6) of the Competition Act examine on oath: (i) any of the
officers and other employees and agents of the party being investigated; and
(ii) with the prior approval of CCI, any other person in relation to the affairs
of the party being investigated. For the purpose of administering the oath,
the DG may require any of the persons being investigated to appear
personally.

Section 41(7) of the Competition Act mandates that the examination

conducted under Section 41(6) by the DG would be recorded in writing and
shall be read over to or by, and signed by, the person examined and may
thereafter be used as evidence.

4. Search and seizure of Documents : In terms of Section 41(8) of the

Competition Act, when the DG in course of investigation has "reasonable
grounds to believe" that information, books, papers, other documents or
records of, or relating to, any party or person, may be destroyed, mutilated,
altered, falsified or secreted, the DG may make an application to the Chief
Metropolitan Magistrate, Delhi for an order for seizure of such information,
books, papers, other documents or records.

For the purpose of seizing the documents, the DG may make requisition of
the services of any police officer or any officer of the Central Government to
assist him. It shall be the duty of every such officer to comply with the
requisition]

After considering the application filed under Section 41(8) of the Competition
Act and hearing from the DG, the Chief Metropolitan Magistrate Delhi may by
order authorise the DG:

1. to enter, with such assistance, as may be required, the place or places

where such information, books, papers, other documents are kept;
2. to search that place or places in the manner specified in the order; and
3. to seize information, books, papers, other documents or records as it
considers necessary for the purpose of investigation.

The documents obtained from the search and seizure operation conducted
by the DG shall be retained only until the conclusion of the investigation and
thereafter, the same shall be returned to the party or person from whose
custody they were seized. However, the DG is permitted to take copies of the
documents before returning the same.

5. Procedure for conducting search and seizure

Every search or seizure made under Section 41 of the Competition Act shall
be conducted and carried out in accordance with the provisions of the Code
of Criminal Procedure, 1973 relating to search or seizure.