Competition Act on Coal India Limited: Supreme Court
The court rejected the argument that the organisation, which operates coal mines under the Coal Mines Nationalisation Act, was exempt from the new economic regime.
New Delhi: Coal India Limited, a public sector undertaking, has come under the ambit of the Competition Act, 2002, as ruled by the Indian Supreme Court.
The court rejected the argument that the organisation, which operates coal mines under the Coal Mines Nationalisation Act, was exempt from the new economic regime.
The decision means that state monopolies in distribution must comply with the anti-monopoly law, and abuse of dominant position by an enterprise or group is prohibited under the Competition Act.
The competition regulator had earlier imposed a significant penalty on Coal India for imposing unfair conditions in Fuel Supply Agreements with power producers. This ruling is a significant step towards ensuring free and fair competition in India.
What is Competition Act, 2002 ?
The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic Monopolies and Restrictive Trade Practices Act, of 1969. Under this legislation, the Competition Commission of India was established to prevent activities that have an adverse effect on competition in India. This act extends to whole of India.
It is a tool to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market. Competition law is equally applicable on written as well as oral agreement, arrangements between the enterprises or persons.
The Competition Act, 2002 was amended by the Competition (Amendment) Act, 2007 and again by the Competition (Amendment) Act, 2009.