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The Tax Publishers Competition Act, 2002--Press Release Press Release, dtd. 24-2-2024 FAQs on Lesser Penalty Regime Press Release, dtd. 24-2-2024 Q.1 What is meant by Lesser Penalty? Ans. Lesser Penalty means reduction in the amount of penalty imposed upon a person (enterprise or an individual or an association of enterprises or association of persons) by the Competition Commission of India (CCI) for contravention of certain provisions of the Competition Act, 2002 (Act). Lesser Penalty is an incentive provided to infringers of law to come forward and disclose information, documents and evidence with respect to their cartel conduct, in return for grant of reduction in the penalty which may be levied on them. Q.2 What is meant by Lesser Penalty Plus? Ans. Lesser Penalty Plus provides an incentive to existing Lesser Penalty applicants to come forward and disclose information, documents and evidence with respect to their participation in another cartel. Such disclosure would not only entitle the Lesser Penalty Plus applicant for grant of reduction in penalty which may be levied on it in the second cartel, but also for grant of additional reduction in penalty which may be levied on it in the first cartel. Q.3 What are the applicable provisions of the Act and Regulations which govern the Lesser Penalty regime of CCI? Ans. The Lesser Penalty regime of CCI is provided under Section 46 of the Act and is governed by the Competition Commission of India (Lesser Penalty) Regulations, 2024, more commonly known as the LPR, which are available on the website of CCI and can be accessed at https://cci.gov.in/legal-framwork/regulations. Q.4 Do Lesser Penalty and Leniency mean the same thing? Ans. Yes, in common parlance, programs/regimes similar to the Lesser Penalty regime of CCI available under the Competition/Antitrust Laws of various other jurisdictions are referred to and known as "Leniency Programs". Q.5 Who can apply for Lesser Penalty and/or Lesser Penalty Plus and for what kind of conduct? Ans. Under the Lesser Penalty regime of CCI, an application for Lesser Penalty and/or Lesser Penalty Plus may be made by any producer, seller, distributor, trader or service provider included in any cartel or by one who though is not engaged in identical or similar trade, if it participates or intends to participate in the furtherance of such cartel. Such applicant may be an (a) enterprise who is or was a member of a cartel, or (b) association of enterprises or association of persons, or (c) individual who is or was involved in the cartel on behalf of such enterprise or association. To become a Lesser Penalty Plus applicant, one should already be a Lesser Penalty applicant. An application for Lesser Penalty and/or Lesser Penalty Plus may, however, be made only with respect to cartel conduct, i.e., producers, sellers, distributors, traders or service providers coming together and agreeing amongst themselves to limit, control or attempt to control production, distribution, sale, price or trade in goods or provision of services (including bid-rigging and collusive bidding). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Competition Act, 2002--Press Release

Press Release, dtd. 24-2-2024

FAQs on Lesser Penalty Regime Press Release, dtd. 24-2-2024

Q.1 What is meant by Lesser Penalty?

Ans. Lesser Penalty means reduction in the amount of penalty imposed upon a person (enterprise or an individual or an association of enterprises or association of persons) by the Competition Commission of India (CCI) for contravention of certain provisions of the Competition Act, 2002 (Act). Lesser Penalty is an incentive provided to infringers of law to come forward and disclose information, documents and evidence with respect to their cartel conduct, in return for grant of reduction in the penalty which may be levied on them.

Q.2 What is meant by Lesser Penalty Plus?

Ans. Lesser Penalty Plus provides an incentive to existing Lesser Penalty applicants to come forward and disclose information, documents and evidence with respect to their participation in another cartel. Such disclosure would not only entitle the Lesser Penalty Plus applicant for grant of reduction in penalty which may be levied on it in the second cartel, but also for grant of additional reduction in penalty which may be levied on it in the first cartel.

Q.3 What are the applicable provisions of the Act and Regulations which govern the Lesser Penalty regime of CCI?

Ans. The Lesser Penalty regime of CCI is provided under Section 46 of the Act and is governed by the Competition Commission of India (Lesser Penalty) Regulations, 2024, more commonly known as the LPR, which are available on the website of CCI and can be accessed at https://cci.gov.in/legal-framwork/regulations.

Q.4 Do Lesser Penalty and Leniency mean the same thing?

Ans. Yes, in common parlance, programs/regimes similar to the Lesser Penalty regime of CCI available under the Competition/Antitrust Laws of various other jurisdictions are referred to and known as "Leniency Programs".

Q.5 Who can apply for Lesser Penalty and/or Lesser Penalty Plus and for what kind of conduct?

Ans. Under the Lesser Penalty regime of CCI, an application for Lesser Penalty and/or Lesser Penalty Plus may be made by any producer, seller, distributor, trader or service provider included in any cartel or by one who though is not engaged in identical or similar trade, if it participates or intends to participate in the furtherance of such cartel. Such applicant may be an (a) enterprise who is or was a member of a cartel, or (b) association of enterprises or association of persons, or (c) individual who is or was involved in the cartel on behalf of such enterprise or association. To become a Lesser Penalty Plus applicant, one should already be a Lesser Penalty applicant.

An application for Lesser Penalty and/or Lesser Penalty Plus may, however, be made only with respect to cartel conduct, i.e., producers, sellers, distributors, traders or service providers coming together and agreeing amongst themselves to limit, control or attempt to control production, distribution, sale, price or trade in goods or provision of services (including bid-rigging and collusive bidding).