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MCA Unveils the “Leniency Plus” Regime to Crack Down on Cartels

Context: 

The Ministry of Corporate Affairs has notified the introduction of the “Leniency Plus” regime to revolutionise AntiTrust enforcement in the country

What Is Leniency Plus?

  • Leniency Plus is an incentive program introduced by the Ministry of Corporate Affairs (MCA) in India to encourage companies to disclose their involvement in cartels and cooperate with authorities in their investigations.
  • It essentially works by offering companies reduced penalties or even immunity from prosecution in exchange for their cooperation.
Cartels

  • Cartel is a group of independent market participations colluding to improve their profits and dominate the market.
  • A Cartel is an organisation formed by producers to limit competition and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas.

It Aims to Strengthen the Fight Against Cartels in India by

  • Motivating companies to self-report their involvement in cartels.
  • Providing valuable information to authorities for more effective investigations.
  • Deterring future cartel activity by increasing the risks and reducing potential rewards.

Feature of Leniency Plus

  • Additional Penalty Reduction: Companies that have already filed a leniency application for a cartel and subsequently disclosed another cartel can receive an additional reduction of up to 30% in the penalty for the first cartel. 
  • Encouraging Disclosure: Under the regime, companies under investigation for one cartel would be encouraged to report other unknown cartels to the Competition Commission of India.
  • Enhanced Discovery: Such a program helps competition authorities discover secret cartels and obtain insider evidence of the infringement.
  • Wider Scope: The program covers a wider range of anti-competitive agreements than the standard leniency program.
  • International Recognition: The regime is already recognised in jurisdictions like the UK, US, Singapore, and Brazil.
Also Read: Farmers Protest 2.0: Are Farmers Demands Unjustified?

News Source: The Hindu

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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