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.

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.

News Source: The Hindu