CCI seeking inputs for effective implementation of ‘Manner of Recovery of Monetary Penalty’ regulations
The Competition Commission of India recently proposed certain amendments to CCI (Manner of Recovery of Monetary Penalty) Regulations, 2011, based on the experience gained during implementation of these regulations over the years, to streamline the process of recovery, strengthen its enforcement framework and enhance penalty recovery rates.
This is a crucial step in addressing longstanding challenges in the collection of fines imposed on entities violating competition laws. The proposed amendments aim to close gaps in the recovery process, strengthen compliance, and ensure that penalties act as a credible deterrent against anti-competitive practices.
Key changes in the draft amendments introduce more precise definitions, including terms like “enterprise in default” and “person in default,” which are designed to simplify the identification of defaulters and enhance accountability. The amendments also propose a more structured process for issuing demand notices, with specific timelines for penalty payments and automatic accrual of interest at a rate of 1.5 percent per month on overdue amounts. This clarity aims to eliminate ambiguities around payment deadlines and strengthen the penalty’s enforceability. The regulations propose a central role for the recovery officer, who will be responsible for monitoring compliance, issuing recovery certificates, and executing recovery actions in cases of default. These actions can now include attachment and sale of both movable and immovable assets. In cases where penalties remain unpaid, the CCI may initiate proceedings to secure recovery by attaching the assets of the defaulting enterprise or individual, including those located abroad, through collaboration with international authorities where reciprocal agreements exist. Additionally, the draft amendments introduce a dedicated penalty recovery register, designed to track recovery progress and record enforcement actions systematically.
Comments may be submitted by 06th December, 2024.
