An overview of provisions relating to competition laws & consumers protection laws in India
“The main objective of the Competition Law is to promote economic efficiencies using competition as one of the means of assisting the creation of market responsive to consumer preferences.” – Supreme Court of India
Competition can be defined as a process wherein cost efficient production is achieved in a structure having reasonable number of players (producers and consumers) with simple entry and exit procedures and where exists a close substitution between products of different players in a given industry.
Competition refers to a market situation in which sellers independently strive for buyer’s patronage in order to achieve the business objectives of profit, sales turnover and market share. In other words, it is the act of competing by an enterprise against other business enterprises for the purpose of achieving dominance in the market or attaining a reward or goal. It is the foundation on which a market system works. For market economy to function effectively, this competition has to be free and fair. Such a competition stimulates innovation and productivity and thus leads to the optimum allocation of resources in the economy; guarantees the protection of consumer interests; reduces costs and improves quality; accelerates growth and development and preserves economic and political democracy.
In the absence of adequate safeguards, enterprises may undermine the market by resorting to unfair practices for their short term gains. As a result, marketdistortionary practices and anti-competitive forces may restrict the working of healthy competition in an economy. Thus, there arises the need to have a proper regulatory environment which can ensure a healthy competition so that all business enterprises can grow and expand and stimulate economic development of the country. Legislation of an effective competition law should contain short term and long term policy options that can regulate the competition leverage to run the economy on a safe track with sustaining speed.
Most competition laws seek to increase economic efficiency, enhance consumer welfare, ensure fair trading, and prevent abuse of market power. The three areas of enforcement that are provided for in most competition laws are–
(i) Anti-competitive agreements
(ii) Abuse of dominance, and
(iii) Mergers which have potential for anti-competitive effect.
The reasons for adoption of competition laws vary across countries; these are usually on account of concerns about high level of market concentration, formation of cartels, state monopolies, privatization and deregulation, meeting with the requirements of bilateral and plurilateral trade agreements and in addition, to take care of cross border competition dimensions and concerns.
To READ MORE download free e-book written by CA Rajkumar S. Adukia, which covers the following topics :-
1. Introduction
2. Historical background of Competition Law
3. Evolution of Competition law in India
4. Monopolies and Restrictive Trade Practices Act, 1969 – An overview
5. Consumer Protection laws in India
6. Competition Policy
7. Competition Act, 2002 – An overview
8. Analysis of key concepts and issues of competitive law
a. Anti-Competitive Agreements
b. Abuse of Dominant Position
c. Regulation of Combinations
d. Competition Advocacy
9. Competition Commission of India (CCI)
10. Competition Appellate Tribunal
11. Penalties
12. Important Cases
13. Competition legislations in other countries
14. Professional Opportunities
15. Important websites
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Author Bio
Cheer to home buyers! At last relief to home buyer! Builders are not the holy cows! Builder can not use buyers money to make his own profit! etc. Were the slogans in judgment and Newsletter. RERA Act had been coming to ears of poor buyer who had invested there life long earned money with builder Mafias.some are paying interest and some have resolved there movable assets on quater of the price 8-10 years back to get dream house. Children of there who were students are now to start their new life. Means next generation too is effected by Builder Mafias. But judicial system says that every case cannot be given same judgment according to supreme court. Lower courts are welcome known that going to supreme court is quite expensive for common man for appeal. They twist the case mentioning’s of supreme court in one certain case. Judiciary is not even thinking of distortion of home of common man while having unjustified judgments. Now after taking refund at 18% it does not want to understand if builder would have taken money from Nationalized bank, he would have to pay for every single day compounded daily for the money he owes to home buyer.Secondly hike in service tax and stamp duty within this time shall be paid by him to new developer to whom he shall go after taking refund, Thirdly where cost escalation price is justified by Revised PRICE LIST of developer and further can be calculated by Cost inflation Index used by government of India in levying taxes can be added is too not given. But the buyer who had got refund had to pay escalated price to New developer. So his dream house keeps dream for passed generation.
Advocate are running there business by assuring judgments as per their contacts. On 1st May 2016 It was said implementation of RERA Act. But new judgment are taking MOFA Act 1963. Nothing is clear. Builders are strong enough for legislation and judicial system to change accordingly. Future of India is to come to worst if this does not stop. People are loosing faith in judiciary. A day will come when courts will be empty and Advocate and Judiciary shall be seen in PVR or Malls to spend time. Mafia person have just to say is Contacts and common man shall surrender. HAMARA DESH MAHAN?