MAKE COMPETITION ACT IN INDIA MORE STRINGENT : EXPERS SAYS

MAKE COMPETITION ACT IN INDIA MORE STRINGENT : EXPERS SAYS Stressing on making the Competition Act in India more stringent, an international expert on Competition Acts said these measures were necessary to attract more foreign investments in the country and to make the environment more liberal and competitive. Speaking at a meeting organised by the Gujarat Chamber of Commerce and Industry on the Competition Act of India, Varsha Kale said powerful companies in the country are abusing the present situation by forming cartels. These cartels indulge in predatory pricing, control supply of goods and services and even manipulate share markets. In view of this, it is necessary to give power to the Competition Commission to levy heavy penalty on the cartels indulging in malpractices and control merger process. Ms Kale, who is an Associate Director of the Berwin Leightn Paisner LLP in UK, said unlike the Competition Acts in 90 countries across the world, India’s Competition Act of 2002 is weak compared to the similar acts prevailing in Britain and other European countries. Citing several instances of heavy penalties imposed on reputed companies and cartels including the British Airways in the UK and Europe, she said the Competition Commission of India is not empowered to impose such heavy deterrent penalties. GCCI honorary secretary Ashish Guru said despite the liberalisation of economy since 1991, the business scenario is still not truly competitive in the country due to several factors like unpredictable government policies, deficient infrastructure and inadequate consumer orientation among others, he added. UNI

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