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

21 Feb 2024

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

Must Read
NCERT Notes For UPSC UPSC Daily Current Affairs
UPSC Blogs UPSC Daily Editorials
Daily Current Affairs Quiz Daily Main Answer Writing
UPSC Mains Previous Year Papers UPSC Test Series 2024

 

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 123
45678910
11121314151617
18192021222324
25262728293031

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

      
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
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
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

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.