The Competition Commission of India (“CCI” or “Commission”) in exercise of powers conferred under Section 64(2)(g) read with Section 36 and Section 39(1) of the Competition Act, 2002, vide Notification No. F. No. CCI/Reg.-R.R./2024-25[1] issued the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2025 (“Manner of Recovery Regulations”) dated February 25, 2025. With the issuance of the Manner of Recovery Regulations, the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011 now stand repealed.
The salient features of the Manner of Recovery Regulations are as outlined below:
I. Issuance of Demand Notice
- Upon the imposition of a penalty, the Secretary shall issue a demand notice in Form I of the Manner of Recovery Regulations to the concerned enterprise or person, along with a copy to the recovery officer and the order imposing the penalty.
- A minimum of 60 (sixty) days from the date of receipt of the Commission’s order shall be provided to deposit the penalty.
- The penalty shall be paid via a challan in Form II attached to the Manner of Recovery Regulations to the Pay & Accounts Officer, Ministry of Corporate Affairs.
- The enterprise or person shall submit a copy of the challan to the recovery officer within 7 (seven) days of payment.
II. Extension of Time and Payment in Instalments
- Enterprises or persons may apply to the Commission before the due date for an extension of time or payment by instalments, with conditions as the Commission deems fit. However, if such extended payment period or instalments shall not be adhered to, the enterprise or person shall be deemed in default, and the entire penalty shall become due immediately.
III. Interest on Penalty
- A simple interest of 1% (one percent) per month or part thereof shall be levied on any outstanding penalty after the period specified in the demand notice. The Commission may reduce or waive such interest if default is due to circumstances beyond the control of the enterprise or person.
IV. Issuance of Recovery Certificate
- If an enterprise or person fails to pay the penalty, the Commission may issue a recovery certificate to be executed by the recovery officer.
- The recovery certificate shall specify the amount due and the recovery mechanisms, with a 15 (fifteen) day window to deposit the penalty..
V. Functions of the Recovery Officer
- The recovery officer shall ensure the demand notice to be served, and in case of non-payment or default, shall inform the Secretary and ensure issuance of the recovery certificate.
- The recovery officer shall maintain a penalty recovery register which shall be updated regularly.
VI. Modes of Recovery
- If the penalty remains unpaid, the recovery officer may demand payment from any enterprise or person holding money for the defaulter, or their legal heirs in case of death.
- The Commission may proceed with the attachment and sale of movable and immovable property to recover the penalty.
- Recovery may also include proceedings under the Income-tax Act, 1961, and attachment of movable/ immovable property in line with the Second Schedule of the Income-tax Act.
VII. Reference to Income-Tax Authority
The Commission may refer penalty recovery to the Income-tax authority for enforcement under the Income-tax Act, 1961.
VIII. Refund of Excess Penalty
- A penalty may be reduced or ruled out by higher courts (National Company Law Appellate Tribunal, High Court, or Supreme Court). In such event, the excess penalty paid shall be refunded by the Secretary.
IX. Power to Determine Procedure
- In the cases not covered under these Manner of Recovery Regulations, the Commission shall have the authority to determine the procedure for specific matters.
- The Commission shall always have the final say in case any doubt or difficulty arises during the implementation of these Manner of Recovery Regulations.
[1] https://cci.gov.in/images/whatsnew/en/gazette-notification17406542541740655036.pdf