Fair trade regulator CCI has told top companies that non-compliance with competition laws could damage their reputation and lead to heavy fines.
The Competition Commission of India (CCI) has the mandate to keep a tab on anti-competitive practices in the market place across various sectors.
CCI held deliberations with representatives of top companies late last month to sensitise them about competition norms in the country. During the meeting, it apprised them of the possible fallouts if entities are found to be non-compliant with the fair trade rules.
According to a presentation made by CCI at the meeting, the consequences of non-compliance could be "damage to reputation, loss of business, heavy cost of fighting competition law infringement cases".
Other consequences could be "cease and desist orders, heavy fines, director disqualification orders, division of the dominant enterprise, awarding of compensation by tribunal.”
The Commission has said that competition compliance can help in reducing unnecessary legal disruption to business and even provides "competitive advantage in availing leniency treatment".
CCI has also asked companies to have a Competition Compliance Programme (CCP) in place, which would, among others, help in ensuring that the Competition Act is not infringed upon.
Top 100 Indian companies, based on their market capitalisation were invited for the meeting held on January 24, on the topic 'Competition Compliance for Good Corporate Governance'.
Representatives of trade and industry associations such as Assocham, Ficci and CII also participated.
During the meeting, Corporate Affairs Minister Sachin Pilot asked companies to ensure fair trade practices in their markets and restrain from anti-competitive activities that hurt consumers.
To spread awareness about healthy competition in market place, Pilot along with CCI officials met senior executives of country's top companies.
Image: Corporate Affairs Minister Sachin Pilot