Statutory, regulatory & various quasi-judicial bodies

Model Answers

Composition of the Competition Commission of India (CCI)

The Competition Commission of India (CCI) is composed of one Chairman and up to six other members, all appointed by the Central Government. The eligibility criteria for these members include a minimum of 15 years of experience in fields such as international trade, economics, business, law, finance, and competition law, among others. The Chairman and members are expected to be individuals of ability, integrity, and standing, with specialized knowledge in their respective fields.

Role of CCI in Promoting Fair Competition

The CCI plays a pivotal role in ensuring fair competition in India’s markets through various functions:

1. Investigation of Anti-Competitive Practices: The CCI investigates anti-trust practices, such as cartels, bid-rigging, and abuse of dominant positions, ensuring a level playing field across industries.
2. Penalties and Enforcement: The CCI can issue cease and desist orders, as well as impose penalties for violations of the Competition Act, 2002, to deter anti-competitive behavior.
3. Promoting Consumer Welfare: The CCI ensures that competition benefits consumers, preventing monopolistic practices that harm consumer interests.
4. Approval of Mergers and Acquisitions: The CCI evaluates mergers and acquisitions for potential anti-competitive effects and grants approvals accordingly.
5. Awareness and Advocacy: The CCI organizes seminars, workshops, and publications to increase awareness of competition laws and enhance compliance.

Through these measures, the CCI contributes to a fair and conducive business environment, fostering competition and consumer protection. The recommendations of the 2019 Competition Law Review Committee and the Competition (Amendment) Bill, 2022, further aim to improve the Commission’s effectiveness (Source: Competition Commission of India Act, 2002; CCI Reports).

Model Answer

The Enforcement Directorate (ED), tasked with enforcing economic laws such as the Foreign Exchange Management Act (FEMA) 1999 and the Prevention of Money Laundering Act (PMLA) 2002, has faced significant criticisms regarding its functioning and effectiveness. These criticisms stem from concerns about its operational transparency, fairness, and accountability.

1. Low Conviction Rate

• Despite initiating a large number of investigations, ED’s conviction rate is remarkably low.
  Fact: As of March 31, 2022, ED achieved convictions in only 23 cases out of 5,422 PMLA cases, reflecting a conviction rate of less than 0.5%.
  Implication: This undermines public confidence in its ability to ensure justice and effectively combat money laundering.

2. Lack of Accountability

• The ED’s operations lack transparency, which raises concerns about fairness and due process.
  Fact: The ED is not obligated to share the Enforcement Case Information Report (ECIR) with the accused, severely hampering their defense.
  Criticism: This opacity reduces credibility and raises questions about impartiality.

3. Abuse of Wide Powers

• The ED possesses broad powers without adequate checks and balances.
  Fact: The agency can search and seize property without registering a scheduled crime with a magistrate.
  Implication: This undermines judicial oversight and compromises individual rights.

4. Discretion in Application of Law

• There are allegations of selective enforcement, often influenced by political considerations.
  Fact: Under Section 65 of PMLA, ED has discretion to apply CrPC or PMLA provisions, raising concerns about potential bias.

5. Delayed Pre-trial Processes

• Prolonged investigations and repeated summons are often perceived as harassment.
  Fact: The Supreme Court criticized ED for filing multiple charge sheets, delaying trials, and prolonging legal uncertainty.

Conclusion

While the ED plays a crucial role in maintaining India’s financial integrity, its functioning is marred by issues that undermine public trust. Improving accountability, ensuring judicial oversight, and streamlining investigative processes are essential to bolster its credibility and effectiveness.