Institutional Guidelines Adopted by CCI



Institutional Guidelines Adopted by CCI

As mandated under the Competition Act, 2002, the Competition Commission of India may impose penalties, and/or issue cease & desist order in appropriate cases. However, while imposing penalties under section 27 of the Act, the Commission takes into account the aggravating and mitigating factors before arriving at the fair and judicious quantum of such penalties.


Penalties are imposed in order to eliminate practices having adverse effect on competition, as well as for promoting and sustaining competition, primarily to protect the interests of consumers.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

*****

Companies Registered Under Companies Act


The Number of Companies registered under the Companies Act during the year 2014-15 is 64,395. The number of Companies listed  in stock exchange during the year 2014-15 is 66.

The total authorised capital of public and private limited companies registered during the year 2014-15 is Rs.8,826.80 crore and 22,953.93 crore respectively.

The details regarding area of operations of the companies registered during the year 2014-15, State/UT-wise is at Annexure.

Annexure
Details of area of operations of the registered companies


State/UT
Agriculture
Industry
of which Manufacturing
Services
 Total
Andaman and Nicobar Islands
                 3
                  1
                                    -  
                            25
                             29
Andhra Pradesh
             136
              750
                                 326
                       1,300
                       2,186
Arunachal Pradesh
                -  
                  5
                                     1
                               2
                               7
Assam
               17
                66
                                   36
                          116
                          199
Bihar
               58
              647
                                 243
                          914
                       1,619
Chandigarh
                 2
              112
                                   77
                          298
                          412
Chhattisgarh
               20
              114
                                   70
                          194
                          328
Dadar Nagar Haveli
                -  
                  8
                                     7
                               6
                             14
Daman and Diu
                 1
                  1
                                    -  
                               5
                               7
Delhi
             116
          1,933
                             1,244
                       9,027
                     11,076
Goa
                 2
                30
                                   13
                          126
                          158
Gujarat
               97
          1,268
                                 968
                       1,785
                       3,150
Haryana
               42
              480
                                 323
                       2,034
                       2,556
Himachal Pradesh
                 5
                66
                                   29
                          140
                          211
Jammu and Kashmir
                 4
                55
                                   28
                          129
                          188
Jharkhand
               16
              366
                                   65
                          286
                          668
Karnataka
               97
          1,040
                                 613
                       3,888
                       5,025
Kerala
               57
              361
                                 173
                       1,229
                       1,647
Madhya Pradesh
             107
              448
                                 262
                          787
                       1,342
Maharashtra
             459
          2,400
                             1,464
                       8,161
                     11,020
Manipur
                 3
                13
                                     7
                            27
                             43
Meghalaya
                 2
                  7
                                     3
                            10
                             19
Mizoram
                -  
                  1
                                     1
                               4
                               5
Nagaland
                 2
                  3
                                    -  
                               5
                             10
Orissa
               42
              299
                                 117
                          495
                          836
Pondicherry
                -  
                23
                                   20
                            51
                             74
Punjab
               39
              180
                                 137
                          532
                          751
Rajasthan
               55
              563
                                 299
                       1,073
                       1,691
Tamil Nadu
             152
          1,158
                                 682
                       3,557
                       4,867
Telangana
             108
          1,016
                                 507
                       2,637
                       3,761
Tripura
                 1
                  3
                                     2
                            14
                             18
Uttar Pradesh
             204
          1,418
                                 711
                       4,367
                       5,989
Uttarakhand
               14
                72
                                   41
                          248
                          334
West Bengal
             139
              690
                                 329
                       3,326
                       4,155
Grand Total
         2,000
        15,597
                             8,798
                    46,798
                     64,395










Source-MCA-21

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
*****

Activities by Companies Under CSR


The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules made thereunder have been notified on 27.02.2014. These notifications are available on the Ministry’s website (www.mca.gov.in). The salient features of CSR provision inter-alia, are as follows:

·         companies above the specified threshold of  turnover or net worth or net profit are required to spend at least two per cent of their average net profits earned during three immediately preceding financial years on CSR activities;
·         each such company is required to constitute a CSR committee of the Board;
·         the Board of each such company is required to have the company’s CSR policy formulated and monitor its implementation;
·         the Board's report shall include an annual report on CSR containing particulars specified in prescribed format;
·         the Board’s report shall specify the reasons for not spending the specified amount, if the company fails to spend such amount;
·         companies may implement their CSR Policy through trusts or societies or Section 8 companies etc.;
·         indicative activities which can be undertaken by a company under CSR have been specified in Schedule VII of the Act;

CSR expenditure of 460 listed companies, which have placed their annual reports on their website, indicates that 51 Public Sector Undertakings (PSUs) and 409 private sector companies together spent about Rs. 6337 crores on CSR during 2014-15 as summarized below:

Sl. No.
Company Type
No. of companies
Actual CSR expenditure (in Rs. Crore) (2014-15)
1.
PSUs
51
2386.60
2.
Private  Sector Companies
409
3950.76
           Total
460
6337.36

Of these 460 companies, company-wise CSR expenditure of top 20 companies may be seen at Annexure – I. State /UT-wise number of CSR projects undertaken is at Annexure –II. Information on CSR expenditure on various developmental work by companies is at Annexure- III.

(As per Section 135 (3) & (4) of the Companies Act, 2013 Board of the company is empowered to select programmes / projects / activities to be undertaken and monitor the same. Ministry of Corporate Affairs has no role to play in this regard.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

Annexure – I

TOP 20 COMPANIES BY ACTUAL CSR SPEND DURING FY 2014-15 (In Rs. Crore)

Sl. No. 
NAME OF THE COMPANY
Actual CSR Expenditure
1
RELIANCE INDUSTRIES LIMITED
760.58
2
OIL AND NATURAL GAS CORPORATION LIMITED
495.23
3
INFOSYS LIMITED
239.54
4
TATA CONSULTANCY SERVICES LIMITED
219.00
5
ITC LIMITED
214.06
6
NTPC LIMITED
205.18
7
NMDC LIMITED
188.65
8
TATA STEEL LIMITED
171.46
9
OIL INDIA LIMITED
133.31
10
WIPRO LIMITED
132.70
11
INDIAN OIL CORPN. LIMITED
113.79
12
BHARAT HEAVY ELECTRICALS LIMITED
102.06
13
MAHINDRA AND MAHINDRA LIMITED
83.24
14
HINDUSTAN UNILEVER LIMITED
82.35
15
LARSEN AND TOUBRO LIMITED
76.54
16
GAIL (INDIA) LIMITED
71.69
17
CAIRN INDIA LIMITED
70.36
18
NORTHERN COALFIELDS LIMITED
61.77
19
MAHANADI COALFIELDS LIMITED
61.30
20
HINDUSTAN ZINC LIMITED
59.28

GRAND TOTAL
3542.09

Annexure – II
State/UT-wise CSR Projects undertaken during FY 2014-15

Sl. No.
States
No. of Projects
Sl. No.
States
No. of Projects
1
Maharashtra
202
19
Jharkhand
41
2
Gujarat
111
20
Bihar
38
3
Tamil Nadu
97
21
Kerela
37
4
Karnataka
95
22
Himachal Pradesh
34
5
Rajasthan
89
23
Goa
23
6
Uttar Pradesh
80
24
Manipur
23
7
Andhra Pradesh
79
25
Arunachal Pradesh
22
8
West Bengal
79
26
Chandigarh
21
9
Madhya Pradesh
71
27
Meghalaya
20
10
Delhi
66
28
Sikkim
20
11
Haryana
66
29
Tripura
20
12
Orissa
54
30
Nagaland
19
13
Jammu & Kashmir
52
31
Pondicherry
19
14
Chattisgarh
48
32
Andaman & Nicobar Islands
18
15
Telangana
47
33
Dadar & Nagar Haveli
18
16
Uttarakhand
47
34
Daman & Diu
17
17
Punjab
43
35
Lakshadweep
17
18
Assam
42
36
Mizoram
15




Total
1790































 Annexure - III

ANNEXURE REFERED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 656

Development Sector wise CSR expenditure (FY 2014-15)

Sl. No
Subjects in Schedule VII
CSR Expenditure  (in Rs. Crore)
1
Eradicating Hunger, Poverty & Health Care
1421.66
2
Education/ Vocational skills / livelihood enhancement
1462.6
3
Women / Old Age / Children
219.27
4
Environment sustainability
1188.69
5
Art & Culture
539.83
6
Sports promotion
454.91
7
PMNRF etc.
125.32
8
Rural Development
724.32
9
Slum Development
114.14
10
Swatch Bharat Kosh
42.64
11
Clean Ganga Fund
15.49
12
Others
28.5

Grand Total
6337.36




























*****

Corporate Frauds

From 2012-13 up to 31-01-2016 the Ministry has ordered investigations through Serious Fraud Investigation Office (SFIO) of this Ministry into the affairs of 258 companies allegedly indulging in fraudulent/ illegal activities. Of these, 116 investigations have been completed and reports submitted to the Ministry, while in 08 cases, investigations have been stayed by the Courts. Further, out of the completed investigations, Ministry has ordered filing of prosecutions in 102 cases, against companies/ directors/ officers in default on account of various non-compliances/ offences committed under the Companies Act, 1956 and other Statutes, as recommended in the investigation reports.

Steps taken by the Ministry include:

the term “Fraud” has been defined in the Companies Act, 2013;

Stricter norms of Corporate Governance and their implementation in the Companies Act, 2013;

Statutory status to the Serious Fraud Investigation Office (SFIO);

Increasing application of technology for early detection of frauds through data mining and Forensic Audit, etc.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

*****

Assessment and Functioning of CCI


Competition Commission of India (CCI) is a Statutory Body established under the Competition Act, 2002 to prevent practices having adverse effect on competition, to promote and sustain competition in markets while protecting the interests of the consumers.  The Commission prepares and forwards to the Central Government an annual report giving a full account of its activities during the previous year, which is laid before each Houses of Parliament.   The number of cases of cartelisation/unethical business practices reported to CCI in the last three years and current year under provisions of the Competition Act, 2002 are given below: -

Year
Number of Cases reported to CCI
2012-13
94
2013-14
115
2014-15
128
2015-16 (Up to 23.02.2016)
113

(Source : CCI)
The details of cases reported, action taken/penalty imposed by CCI on such companies during each of the last three years and the current year, company-wise/sector-wise are indicated in the Annexure – I to Annexure - IV.
Under the provisions of the Competition Act, 2002 the CCI is mandated, inter-alia, to impose penalties and/or issue cease and desist orders in cases of unethical practices such as anti-competitive agreements and abuse of dominance.  
This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
Annexure - I
Financial Year 2012-13

Sl. No.
Name of Case
Sector
Penalty Imposed
(In Rs.)
1
Kannada Grahakara Koota & Shri Ganesh Chetan
FILM & ENTERTAINMENT
                         20,24,621
2
KCEA
FILM & ENTERTAINMENT
                         40,29,277
3
Anil Kumar
REAL ESTATE
 No Penalty Imposed
4
Atos Worldline India Pvt. Ltd.
FILM & ENTERTAINMENT
                       4,48,40,236
5
Three D Integrated Solutions Limited
REAL ESTATE
 No Penalty Imposed
6
IFTRT
FILM & ENTERTAINMENT
                         14,24,521
7
Rohit Medical Store
HEALTH & PHARMACEUTICAL
                           2,93,699
8
M/s Silarpuri Colonizers Private Limited
REAL ESTATE
Not Applicable
9
Advertising Agencies Guild
INFORMATION TECHNOLOGY
Not Applicable
10
Dr. Deepa Narula
REAL ESTATE
Not Applicable
11
Shri M. Rajendran. Kovai Cable Vision
INFORMATION TECHNOLOGY
Under Conisderation
12
Tamarai Technologies Private Limited
MISCELLENEOUS
Under Conisderation
13
Shri Ashok Vijhay Jain
REAL ESTATE
Not Applicable
14
Lt. Col. (Retd.) Dr. Mohinder Kumar Yadav
REAL ESTATE
Not Applicable
15
Smt. Raj Rani Chandhok & Shree Poneet Chandhok
REAL ESTATE
Not Applicable
16
Shri Shivang Agarwal
REAL ESTATE
Not Applicable
17
DGCOM
REAL ESTATE
Not Applicable
18
CUTS
INFORMATION TECHNOLOGY
Under Conisderation
19
Sanjay Kumar Gupta
REAL ESTATE
Not Applicable
20
Sh. Subhash Yadav
AUTOMOBILES
Not Applicable
21
Ms. Nalini Gupta
MISCELLENEOUS
Not Applicable
22
Mr. Tarsem Chand & Mrs Kanta Devti Mittal
REAL ESTATE
Not Applicable
23
IAAI
CIVIL AVIATION
Not Applicable
24
BIG CBS & RTPL
FILM & ENTERTAINMENT
Not Applicable
25
Sreeram Mushty
BANKING & INSURANCE
Not Applicable
26
All India Genset Manufacturer Association
MISCELLENEOUS
Not Applicable
27
M/s Swastik Stevedores Pvt. Ltd.
MISCELLENEOUS
                           3,86,492
28
Mr. Khiani Hiro Rattanlal
MISCELLENEOUS
Not Applicable
29
Mr. Manoj Hirasingh Pradeshi
HEALTH & PHARMACEUTICAL
Not Applicable
30
CINEMAX INDIA LTD.
FILM & ENTERTAINMENT
                         55,20,315
31
Mr. A.K. Jain
REAL ESTATE
Not Applicable
32
Dr. Naveen Karnwal
MISCELLENEOUS
Not Applicable
33
Mineral Enter Ltd.
SHIPPING & TRANSPORT
Not Applicable
34
PDA Trade Fairs
MISCELLENEOUS
Not Applicable
35
N.S. Rao & Fatima Taher
BANKING & INSURANCE
Not Applicable
36
Sh. Kushal K. Rana
REAL ESTATE
Not Applicable
37
ACCAB
MISCELLENEOUS
Not Applicable
38
Exclusive Motors Pvt. Ltd.
AUTOMOBILES
Not Applicable
39
S. Bhargava
REAL ESTATE
Not Applicable
40
Merino Products Ltd.
CHEMICAL & FERTILIZER
Not Applicable
41
ACPMA and its members
CEMENT
Not Applicable
42
Dr. Anoop Bhagat
HEALTH & PHARMACEUTICAL
Not Applicable
43
Faridabad Industries Association

                     25,67,27,640
44
Madhya Pradesh Power Generating Comapnay Ltd
COAL
 No Penalty Imposed
45
Madhya Pradesh Power Generating Comapnay Ltd
COAL
 No Penalty Imposed
46
M/s Next Tenders (India) Private Limited
MISCELLENEOUS
Not Applicable
47
M/s Vijay Rice & General Mills
MISCELLENEOUS
Not Applicable
48
Ms. Lalita Ramakrishnan and Mr. V Ramakrishnan
REAL ESTATE
Not Applicable
49
Mr. Ajay Devgan Films
FILM & ENTERTAINMENT
Not Applicable
50
UPSE Securities Ltd.
BANKING & INSURANCE
Not Applicable
51
Mr. Manjit Singh Sachdeva
CIVIL AVIATION
Not Applicable
52
Indian Exhibition Industry Association
MISCELLENEOUS
                       6,75,03,540
53
Sponge Iron Manufacturers Association
IRON & STEEL
Not Applicable
54
Prasar Bharti
FILM & ENTERTAINMENT
Under Conisderation
55
Bengal Chemist and Druggist Association
HEALTH & PHARMACEUTICAL
                     18,38,56,470
56
M/s Shahi Exports Pvt. Ltd.
TEXTILE
Not Applicable
57
Mr. Karan Sehgal. Proprietor, M/s Karan Ores & Specials
MISCELLENEOUS
Not Applicable
58
Dr. Chintamoni Ghosh, Director
HEALTH & PHARMACEUTICAL
 Penalty imposed but case was clubbed along with SM2 of 2012 so penalty in that case was applicable.
59
Mr. Saifudheen-E
CEMENT
Under Conisderation
60
Mr. Nirmal Kumar Manshani
MISCELLENEOUS
Under Conisderation
61
Mr. Jitendra P. Agarwal
REAL ESTATE
Not Applicable
62
Mr. Ramakant Kini
MISCELLENEOUS
                       3,81,58,303
63
 The Air Cargo Agents Association of India
MISCELLENEOUS
Not Applicable
64
HLS Asia Limited
MISCELLENEOUS
Not Applicable
65
Official Beverages
MISCELLENEOUS
Not Applicable
66
Raaj Kamal Films Internation
FILM & ENTERTAINMENT
Under Conisderation
67
Mr. Kuldeep Singh
REAL ESTATE
Not Applicable
68
Mr. Ajit Mishra
REAL ESTATE
Not Applicable
69
M/s Oracale Drugs & other
HEALTH & PHARMACEUTICAL
Not Applicable
70
M/s Arora Medical Hall
HEALTH & PHARMACEUTICAL
                       2,05,42,953
71
Dr. Adla Satya Narayan Rao.
REAL ESTATE
Under Conisderation
72
Indian Railways Patiala
RAILWAYS
 No Penalty Imposed
73
Mr. Krishnan
PETROLEUM & GAS
Not Applicable
74
Sale of Sugar Mills by UPRCGVNL & UPSSCL
MISCELLENEOUS
Under Conisderation
75
M/s Transparent Energy Systems Pvt. Ltd. (TESPL)
MISCELLENEOUS
Not Applicable
76
Shri Shantaram Walvalkar
BANKING & INSURANCE
Not Applicable
77
Shri Anil Gambhir
MISCELLENEOUS
Not Applicable
78
 Puri VIP Floor Owners Association
REAL ESTATE
Not Applicable
79
Shri Tkushar Kanti Dhingra
REAL ESTATE
Not Applicable
80
 Associaton of Indian Mini Blast Furnaces (AIM)
IRON & STEEL
Not Applicable
81
AdCept Technologies Pvt. Ltd.
COAL
Not Applicable
82
a'XYKno Capital Services Ltd.
COAL
Not Applicable
83
Shri Vineet Kumar
CIVIL AVIATION
Not Applicable
84
Quadrant EPP Surlon India Ltd.
MISCELLENEOUS
Not Applicable
85
Saint Gobain Glass India Ltd.
PETROLEUM & GAS
Not Applicable
86
India Glycols Limited
CHEMICAL & FERTILIZER
Under Conisderation
87
Mr. Kanwal Jit Singh, Proprietor, M/s Kanwal Automobiles
AUTOMOBILES
Not Applicable
88
M/s Dipak Nath
PETROLEUM & GAS
Not Applicable
89
Mr. Sumit Sahni and Mrs. Anumita Sahni
FILM & ENTERTAINMENT
Not Applicable
90
Essel Shyam Communication Ltd
MISCELLENEOUS
Under Conisderation
91
Petroleum Companies Fixing of Petrol Prices
PETROLEUM & GAS
Under Conisderation
92
Gujarat State Electricity Corporation Limited
COAL
                17,73,05,00,000
93
Mr. A.V. Murlidharan, Director
MISCELLENEOUS
                       6,53,18,000
94
Mr. Dinesh Trehan
REAL ESTATE
 No Penalty Imposed

****
Annexure – II
Annexure referred to Lok Sabha Un-starred Question No. 521 answered on 26.02.2016
Financial Year 2013-14


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