Various provisions inter alia Section 27 and Chapter VI of the Act, empower the Commission to impose upon enterprises and/or persons, monetary penalties, for indulging into anti-competitive conduct(s). Section 39(1) of the Act provides for a smooth execution of such orders by prescribing the manner in which such amounts shall be recovered.
CCI vide a notification dated 27 February 2025 enforced the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2025, thereby repealing and replacing the long standing 2011 Regulations. The most significant features are mentioned below:
- Time Period for submission of Penalty & Interest: A demand notice may be issued under immediately after the final order is issued and a period of 60 days is provided to deposit the penalty. Delayed payment is subject to simple interest at 1% per month (12% per annum) until payment. Where the penalty is stayed on appeal (subject to a minimum deposit of 25% as per Section 53 of the Act) but the penalty finally confirmed by the appellate court(s), the interest on the penalty continues to run from the initial date regardless or how many years may have passed in the interim. If the penalty is modified/reduced, the interest is modified/reduced accordingly, again from the initial date.
- Legal Heir: For clarity, the Regulations have now defined who a 'legal heir' of the person in default (person in default means a person who has not paid the penalty imposed upon it within the stipulated time despite the demand notice duly served upon – also newly introduced) may be, and has been introduced as an additional person for recovery of money, in the event the culpable person/entity is not available.
- Two parallel recovery proceedings are sine die deferred: The new Regulations state that where the income-tax authority to which a reference under Regulation 11(1) has been made by the Commission initiates recovery proceedings, the recovery proceedings initiated by the Commission shall stand sine die deferred.
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