Discuss the duties of Director General under Competition Act, 2002. If a person fails to comply without reasonable cause with a directions given by the Commission or the Director-General, what punishment can be given und

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2020
Discuss the duties of Director General under Competition Act, 2002. If a person fails to comply without reasonable cause with a directions given by the Commission or the Director-General, what punishment can be given under the Competition Act, 2002.

Answer & Explanation:

The Competition Act, 2002 provides that the Director General when so directed by the Competition Commission of India, is to assist the Commission in investigation into any contravention of the provisions of the Act. Section 42 Competition Act provides that if any person, without reasonable clause, fails to comply with the orders or directions of the Commission issued under sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine which may extend to rupees one lakh for each day during which such non-compliance occurs, subject to a maximum of rupees ten crore, as the Commission may determine. Further, if any person does not comply with the orders or directions issued, or fails to pay the fine imposed above, he shall, without prejudice to any proceeding under section 39, be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to rupees twenty-five crore, or with both, as the Chief Metropolitan Magistrate, Delhi may deem fit. According to Section 43 of the Competition Act, if any person fails to comply, without reasonable cause, with a direction given by—(a) the Commission under sub-sections (2) and (4) of section 36; or (b) the Director General while exercising powers referred to in sub-section (2) of section 41, such person shall be punishable with fine which may extend to rupees one lakh for each day during which such failure continues subject to a maximum of rupees one crore, as may be determined by the Commission.

Topics: Competition Act, 2002

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