In February 2024, the CCI (Lesser Penalty) Regulations, 2009 ("Erstwhile Regulations") have been replaced by the CCI (Lesser Penalty) Regulations, 2024 ("LP Regulations"). The key additions/changes made by the LP Regulations in comparison to the Erstwhile Regulations:
- Before rejecting the lesser penalty/lesser penalty plus application of the applicant, the Commission is to provide an opportunity of being heard to such applicant. (Reg. 3(6) of the LP Regulations)
- If an applicant, who had earlier made any disclosures in respect of an alleged contravention, makes such disclosure in respect of existence of another cartel which enables the Commission to form a prima facie opinion regarding the existence of a newly disclosed cartel, such applicant may be granted an additional reduction in monetary penalty upto to the prescribed thresholds. Additionally, whilst determining the penalty, the Commission is required to consider (a) likelihood of the newly disclosed cartel being detected without such disclosure; and (b) any other factor deemed relevant by the Commission. (Reg. 5 of the LP Regulations read with Section 46(4) of the Act)
- The procedure for grant of lesser penalty plus has been demarcated. As per the process, an applicant is to furnish a written application containing all material information which can be used as evidence by the Commission. (Reg. 7 of the LP Regulations)
- An applicant can withdraw an application made under the LP Regulations any time prior to the receipt of the report of the investigation by the Commission. However, withdrawal of an application does not limit the Commission from using the information or evidence submitted. (Reg. 10 of the LP Regulations
Originally publsihed 05 April 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.