Competition Commission of India: establishment, composition, meetings and the Competition Fund

1. Establishment: section 7

The Central Government, by notification, established the Competition Commission of India (section 7(1)); it was set up in October 2003. It is a body corporate with perpetual succession and a common seal, with power to acquire, hold and dispose of property, to contract, and to sue and be sued in its own name (section 7(2)). Its head office is where the Government decides (section 7(3)), now New Delhi, and it may set up offices elsewhere in India (section 7(4)). The Commission did not start full enforcement until 2009, after Brahm Dutt v. Union of India (2005) and the 2007 amendment that answered it.

2. Composition and qualifications: section 8

• A Chairperson and not less than two and not more than six other Members, appointed by the Central Government (section 8(1)). The original Act allowed up to ten.
• Each must be a person of ability, integrity and standing with special knowledge of, and professional experience of not less than fifteen years in, international trade, economics, business, commerce, law, finance, accountancy, management, industry, technology (added 2023), public affairs or competition matters including competition law and policy (section 8(2)).
• All are whole-time Members (section 8(3)).

3. Selection: section 9

Appointments are made from a panel recommended by a Selection Committee consisting of:

• the Chief Justice of India or his nominee — Chairperson;
• the Secretary, Ministry of Corporate Affairs — Member;
• the Secretary, Ministry of Law and Justice — Member;
• two experts of repute with special knowledge and experience in the fields listed in section 8(2) — Members.

The term of the Committee and the manner of selection are prescribed by rules (section 9(2)). The judicial element in selection was part of the response to Brahm Dutt.

4. Tenure, resignation and removal: sections 10 to 12

• Term: five years, eligible for reappointment, but no one may hold office after the age of 65 (section 10(1)). Oath of office and secrecy (section 10(3)). The senior-most Member acts as Chairperson in a vacancy or absence (section 10(4), (5)).
• Resignation: by writing to the Central Government, with three months’ notice unless released earlier (section 11(1)).
• Removal by the Central Government (section 11(2)) if the person is adjudged insolvent, engages in paid employment, is convicted of an offence involving moral turpitude, acquires a prejudicial financial or other interest, so abuses the position as to make continuance prejudicial to public interest, or becomes physically or mentally incapable. For the two grounds of prejudicial interest and abuse of position, removal requires a Supreme Court inquiry and report on a reference by the Government (section 11(3)).
• Cooling-off (section 12, substituted 2023): for two years after leaving office, no employment, consultancy or connection with the management of an enterprise that has been a party to proceedings before the Commission, or of anyone who has appeared before it; and no former Member may ever represent any person before the Commission. Government employment is excepted.

5. Administration and staff: sections 13 to 17

• The Chairperson has general superintendence, direction and control of administrative matters and may delegate them (section 13).
• Salaries and conditions are prescribed and cannot be varied to a Member’s disadvantage after appointment (section 14) — a guarantee of independence.
• No act or proceeding is invalid merely because of a vacancy, a defect in constitution or appointment, or a procedural irregularity not affecting the merits (section 15).
• The Director General is appointed to assist in investigation; since 2023 the Commission appoints with the prior approval of the Central Government (section 16).
• The Commission appoints a Secretary, officers and staff, and may engage experts and professionals (section 17).

6. Meetings of the Commission: section 22

• The Commission meets at the times and places, and follows the procedure for business, provided by its regulations (section 22(1)) — the Competition Commission of India (Meeting for Transaction of Business) Regulations.
• If the Chairperson cannot attend, the senior-most Member present presides (section 22(2)).
• All questions are decided by a majority of the Members present and voting (section 22(3)). The Chairperson’s second or casting vote on a tie was removed by the 2023 amendment.
• Quorum: three Members (proviso to section 22(3)).
• The Act once provided for Benches, including Mergers Benches (sections 22 to 25 as enacted); the 2007 amendment replaced this with plenary meetings.

7. Finance: the Competition Fund and audit (sections 50 to 53)

The Central Government may make grants to the Commission after appropriation by Parliament (section 50). Section 51 constitutes the Competition Fund, to which are credited:

• all Government grants received by the Commission;
• the fees received under the Act;
• the interest accrued on those amounts; and
• since 2023, sums from such other sources as the Government may decide.

The Fund is applied to the salaries and allowances of the Chairperson and Members, the administrative expenses including salaries and pensions of the Director General and staff, and other expenses of the Commission in discharging its functions. It is administered by a committee of Members determined by the Chairperson (section 51(3), (4)).

Penalties do not go to the Fund. All sums realised by way of penalties are credited to the Consolidated Fund of India (section 47), as are settlement amounts (section 48A(8)). This prevents the Commission from having a financial interest in the penalties it imposes. Accounts are audited by the Comptroller and Auditor-General and laid before Parliament, but the Commission’s orders, being appealable, are not subject to audit (section 52). The Commission sends returns and an annual report to the Central Government, laid before both Houses (section 53).

How this is examined

June 2025: “Discuss the establishment, composition and duties of Competition Commission of India” (essay), “Composition of Competition Commission” and “Meetings of Commission” (notes). January 2026: “Write a note on ‘competition fund’”. For the essay, take sections 1 to 4 here and add the duties under section 18 from the next note. For the fund, section 7 is the whole answer; the point that penalties go elsewhere is what distinguishes a good answer.