[42. Contravention of orders of Commission.—(1) The Commission may cause an inquiry to be
made into compliance of its orders or directions made in exercise of its powers under the Act.
(2) If any person, without reasonable clause, fails to comply with the orders or directions of the
Commission issued under 3
[sections 6, 27, 28, 31, 32, 33, 42A, 43, 43A, 44 and 45 of the Act, he shall be
liable to a penalty] 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.
(3) If any person does not comply with the orders or directions issued, or fails to 4
[pay the penalty
imposed under sub-section (2)], he shall, without prejudice to any proceeding under section 39, be
1. Subs. by Act 9 of 2023, s. 26, for Explanation (w.e.f. 18-5-2023).
2. Subs. by Act 39 of 2007, s. 34, for section 42 (w.e.f. 20-5-2009).
3. Subs. by Act 9 of 2023, s. 27, for “sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine”
(w.e.f. 18-5-2023).
4. Subs. by s. 27, ibid., for “pay the fine imposed under sub-section (2)” (w.e.f. 18-5-2023).
30
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:
Provided that the Chief Metropolitan Magistrate, Delhi shall not take cognizance of any offence under
this section save on a complaint filed by the Commission or any of its officers authorised by it.]
1
[42A. Compensation in case of contravention of orders of Commission.—Without prejudice to
the provisions of this Act, any person may make an application to the Appellate Tribunal for an order for
the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by
such person as a result of the said enterprise violating directions issued by the Commission or
contravening, without any reasonable ground, any decision or order of the Commission issued 2
[under
sections 6, 27], 28, 31, 32 and 33 or any condition or restriction subject to which any approval, sanction,
direction or exemption in relation to any matter has been accorded, given, made or granted under this Act
or delaying in carrying out such orders or directions of the Commission.]
3
[43. Penalty for failure to comply with directions of Commission and Director General.—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 4
[shall be liable to a penalty] 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.]
5
[43A. Power to impose penalty for non-furnishing of information on combination.—If any
person or enterprise fails to give notice to the Commission under sub-section (2) or sub-section (4) of
section 6 or contravenes sub-section (2A) of section 6 or submit information pursuant to an inquiry under
sub-section (1) of section 20, the Commission may impose on such person or enterprise, a penalty which
may extend to one per cent., of the total turnover or assets or the value of transaction referred to in clause
(d) of section 5, whichever is higher, of such a combination:
Provided that in case any person or enterprise has given a notice under sub-section (4) of section 6
and such notice is found to be void ab initio under sub-section (6) of section 6, then a notice under
sub-section (2) of section 6 may be given by the acquirer or parties to the combination, as may be
applicable, within a period of thirty days of the order of the Commission under sub-section (6) of that
section and no action under this section shall be taken by the Commission till the expiry of such period of
thirty days.]
44. Penalty for making false statement or omission to furnish material information.—If any
person, being a party to a combination,—
(a) makes a statement which is false in any material particular, or knowing it to be false; or
(b) omits to state any material particular knowing it to be material,
such person shall be liable to a penalty which shall not be less than rupees fifty lakhs but which may
extend to 6
[rupees five crore], as may be determined by the Commission.
45. Penalty for 7
[contraventions] in relation to furnishing of information.—8
[(1) Without
prejudice to the provisions of 9
[sub-section (6) of section 6 and] section 44, if a person, who furnishes or
is required to furnish under this Act any particulars, documents or any information,—
(a) makes any statement or furnishes any document which he knows or has reason to believe to
be false in any material particular; or
1. Ins. by Act 39 of 2007, s. 35 (w.e.f. 20-5-2009).
2. Subs. by Act 9 of 2023, s. 28, for “under sections 27” (w.e.f. 10-9-2024).
3. Subs. by Act 39 of 2007, s. 36, ibid., for section 43 (w.e.f. 20-5-2009).
4. Subs. by Act 9 of 2023, s. 29, for “shall be punishable with fine” (w.e.f. 18-5-2023).
5. Subs. by s. 30, ibid., for section 43A (w.e.f. 10-9-2024).
6. Subs. by s. 31, ibid., for “rupees one crore” (w.e.f. 18-5-2023).
7. Subs. by s. 32, ibid., for “offences” (w.e.f. 18-5-2023).
8. Subs. by Act 39 of 2007, s. 38, for sub-section (1) (w.e.f. 20-5-2009).
9. Ins. by Act 9 of 2023, s. 32 (w.e.f. 18-5-2023).
31
(b) omits to state any material fact knowing it to be material; or
(c) wilfully alters, suppresses or destroys any document which is required to be furnished as
aforesaid,
such person shall be 1
[liable to a penalty] which may extend to rupees one crore as may be determined by
the Commission.]
(2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such other
order as it deems fit.
2
[46. Power to impose lesser penalty.— (1) The Commission may, if it is satisfied that any producer,
seller, distributor, trader or service provider included in any cartel, which is alleged to have violated
section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is
vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as may be
specified by regulations, than leviable under this Act or the rules or the regulations made under this Act:
Provided that lesser penalty shall not be imposed by the Commission in cases where the report of
investigation directed under section 26 has been received before making of such disclosure:
Provided further that lesser penalty shall be imposed by the Commission only in respect of a
producer, seller, distributor, trader or service provider included in the cartel, who has made the full, true
and vital disclosures under this section:
Provided also that lesser penalty shall not be imposed by the Commission if the person making the
disclosure does not continue to co-operate with the Commission till the completion of the proceedings
before the Commission:
Provided also that the Commission may, if it is satisfied that such producer, seller, distributor, trader
or service provider included in the cartel had in the course of proceedings,—
(a) not complied with the condition on which the lesser penalty was imposed by the
Commission; or
(b) had given false evidence; or
(c) the disclosure made is not vital,
and thereupon such producer, seller, distributor, trader or service provider may be tried for the
contravention with respect to which the lesser penalty was imposed and shall also be liable to the
imposition of penalty to which such person has been liable, had lesser penalty not been imposed.
(2) The Commission may allow a producer, seller, distributor, trader or service provider included in
the cartel, to withdraw its application for lesser penalty under this section, in such manner and within such
time as may be specified by regulations.
(3) Notwithstanding anything contained in sub-section (2), the Director General and the Commission
shall be entitled to use for the purposes of this Act, any evidence submitted by a producer, seller,
distributor, trader or service provider in its application for lesser penalty, except its admission
(4) Where during the course of the investigation, a producer, seller, distributor, trader or service
provider who has disclosed a cartel under sub-section (1), makes a full, true and vital disclosure under
sub-section (1) with respect to another cartel in which it is alleged to have violated section 3, which
enables the Commission to form a prima facie opinion under sub-section (1) of section 26 that there exists
another cartel, then the Commission may impose upon such producer, seller, distributor, trader or service
provider a lesser penalty as may be specified by regulations, in respect of the cartel already being
investigated, without prejudice to the producer, seller, distributor, trader or service provider obtaining
lesser penalty under sub-section (1) regarding the newly disclosed cartel.]
47. Crediting sums realised by way of penalties to Consolidated Fund of India.—All sums
realised by way of penalties 3
[and recovery of legal costs by the Commission] under this Act shall be
credited to the Consolidated Fund of India.
1. Subs. by Act 9 of 2023, s. 32, for “punishable with fine” (w.e.f. 18-5-2023).
2. Subs. by s. 33, ibid, for section 46 (w.e.f. 20-2-2024).
3. Ins. by s. 34, ibid., (w.e.f. 10-9-2024).
32
1
[48. Contravention by companies.— (1) Where a person committing contravention of any of the
provisions of this Act or of any rule, regulation, order made or direction issued thereunder is a company,
every person who, at the time the contravention was committed, was in charge of, and was responsible to
the company for the conduct of the business of the company, as well as the company, shall be deemed to
be in contravention of this Act and unless otherwise provided in this Act, the Commission may impose
such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of the average
of the income for the last three preceding financial years:
Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into
by a cartel, the Commission may unless otherwise provided in this Act, impose upon such persons
referred to in sub-section (1), a penalty of up to ten per cent. of the income for each year of the
continuance of such agreement.
(2) Nothing contained in sub-section (1) shall render any such person liable to any penalty if he
proves that the contravention was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such contravention.
(3) Notwithstanding anything contained in sub-section (1), where a contravention of any of the
provisions of this Act or of any rule, regulation, order made or direction issued thereunder has been
committed by a company and it is proved that the contravention has taken place with the consent or
connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other
officers of the company, such director, manager, secretary or other officers shall also be deemed to be in
contravention of the provisions of this Act and unless otherwise provided in this Act, the Commission
may impose such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of
the average of the income for the last three preceding financial years:
Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into
by a cartel, the Commission may, unless otherwise provided under this Act, impose upon such person a
penalty as it may deem fit which shall not exceed ten per cent. of the income for each year of the
continuance of such agreement.
Explanation.—For the purposes of this section,—
(a) “company” means a body corporate and includes a firm or other association of individuals;
(b) “director”, in relation to a firm, means a partner in the firm;
(c) “income”, in relation to a person, shall be determined in such manner as may be specified by
regulations.
48A. Settlement.—(1) Any enterprise, against whom any inquiry has been initiated under
sub-section (1) of section 26 for contravention of sub-section (4) of section 3 or section 4, may, for
settlement of the proceeding initiated for the alleged contraventions, submit an application in writing to
the Commission in such form and upon payment of such fee as may be specified by regulations.
(2) An application under sub-section (1) may be submitted at any time after the receipt of the report
of the Director General under sub-section (4) of section 26 but prior to such time before the passing of an
order under section 27 or section 28 as may be specified by regulations.
(3) The Commission may, after taking into consideration the nature, gravity and impact of the
contraventions, agree to the proposal for settlement, on payment of such amount by the applicant or on
such other terms and manner of implementation of settlement and monitoring as may be specified by
regulations.
(4) While considering the proposal for settlement, the Commission shall provide an opportunity to the
party concerned, the Director General, or any other party to submit their objections and suggestions, if
any.
(5) If the Commission is of the opinion that the settlement offered under sub-section (1) is not
appropriate in the circumstances or if the Commission and the party concerned do not reach an agreement
1. Subs. by Act 9 of 2023, s. 35, for section 48 (w.e.f. 6-3-2024).
33
on the terms of the settlement within such time as may be specified by regulations, it shall, by order,
reject the settlement application and proceed with its inquiry under section 26.
(6) The procedure for conducting the settlement proceedings under this section shall be such as may
be specified by regulations.
(7) No appeal shall lie under section 53B against any order passed by the Commission under this
section.
(8) All settlement amounts, realised under this Act shall be credited to the Consolidated Fund of
India.
48B. Commitment.—(1) Any enterprise, against whom any inquiry has been initiated under subsection (1) of section 26 for contravention of sub-section (4) of section 3 or section 4, as the case may be,
may submit an application in writing to the Commission, in such form and on payment of such fee as may
be specified by regulations, offering commitments in respect of the alleged contraventions stated in the
Commission's order under sub-section (1) of section 26.
(2) An offer for commitments under sub-section (1) may be submitted at any time after an order under
sub-section (1) of section 26 has been passed by the Commission but within such time prior to the receipt
by the party of the report of the Director General under sub-section (4) of section 26 as may be specified
by regulations.
(3) The Commission may, after taking into consideration the nature, gravity and impact of the alleged
contraventions and effectiveness of the proposed commitments, accept the commitments offered on such
terms and the manner of implementation and monitoring as may be specified by regulations.
(4) While considering the proposal for commitment, the Commission shall provide an opportunity to
the party concerned, the Director General, or any other party to submit their objections and suggestions, if
any.
(5) If the Commission is of the opinion that the commitment offered under sub-section (1) is not
appropriate in the circumstances or if the Commission and the party concerned do not reach an agreement
on the terms of the commitment, it shall pass an order rejecting the commitment application and proceed
with its inquiry under section 26 of the Act.
(6) The procedure for commitments offered under this section shall be such as may be specified by
regulations.
(7) No appeal shall lie under section 53B against any order passed by the Commission under this
section.
48C. Revocation of the settlement or commitment order and penalty.—If an applicant fails to
comply with the order passed under section 48A or section 48B or it comes to the notice of the
Commission that the applicant has not made full and true disclosure or there has been a material change in
the facts, the order passed under section 48A or section 48B, as the case may be, shall stand revoked and
withdrawn and such enterprise shall be liable to pay legal costs incurred by the Commission which may
extend to rupees one crore and the Commission may restore or initiate the inquiry in respect of which the
order under section 48A or section 48B was passed.]