Industry to be consulted in forming rules: Competition Commission of India

The Competition Commission of India (CCI) has said it will consult all stakeholders for formulating regulations in response to the growing demand from India Inc for taking it on board prior to formulating rules on fair trade practices.

"There has been a demand and I think it is very fair and appropriate that stakeholders should be consulted when regulations are made. So in future, whatever regulations will be made, we will do in consultations with the people concerned," CCI chairman Ashok Chawla told journalists on the sidelines of a Confederation of Indian Industry (CII) summit here on Friday. However, Chawla stated that regulators have been taking suggestions from stakeholders in the past adding, " But sometimes they are not taken so specifically." On the issue of compliance, Chawla said that there is now awareness about compliance.

"We are pushing it through various trade bodies and associations. But what is individual level of compliance in actual operating entities is not for us to comment on. Compliance is like the truth, and not a mathematical formula to match the juggle. The industry must develop this culture and encourage competition. I welcome the initiatives and efforts of CII towards creating awareness on the same amongst the industry." With the objective of improving awareness and providing a platform to educate the India Inc on the issues, CII signed a memorandum of understanding with Indian Institute of Corporate Affairs on Friday. Chawla cautioned, " There are penalties and fines for noncompliance.

The companies also lose credibility if found violating competition compliance. So, the costs of violation are extremely high. Cross- country literature suggests a correlation between the degree of compliance and overall welfare of the society.

India's GDP has tripled in two decades with growth of businesses and hence, the compliance is the need of hour," he added.

Courtesy: Mail Today