Piyush Gupta Head of Aviation & Competition and India practices
Competition Commission of India Taking Strides Towards Penalising Individuals
In a recent development within the competition law circles in India, the Central Board of Direct Taxes (‘CBDT’) has authorized the Indian tax authorities to share ‘relevant’ information with the Competition Commission of India (‘CCI’). It has been has clarified that only ‘relevant and precise information will be shared and that too by maintaining appropriate confidentiality’.
Now why is this development important?
This is important because the CCI requires financial information of entities (companies as well as individuals) to investigate potential violations under the Indian Competition Act (‘Act’). With the aforementioned development, it seems that the CCI intends to (finally!) penalise individuals involved in the contravening acts on behalf of the concerned company on a more proactive basis.
Under the inherent powers provided to the CCI, the regulator can collect all information (whether financial in nature, or otherwise) from any company, but the collection of ‘financial information’ from individuals has historically been quite tricky.
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