Competition Bill better suited

CII has welcomed the passage of the Competition Bill in the Rajya Sabha, reports our New Delhi bureau.
According to the confederation, “The new Competition Act is more relevant to the current competitive environment in which Indian industry operates. While the erstwhile MRTP Act prevented companies from investing and growing, the new legislation will allow companies to grow, while preventing any abuse of market power.�
However CII expressed its concerns on the very low threshold above which all merger and acquisition activity will be scrutinised. This, CII fears, could be abused and might spell the beginning of another Licence-permit Raj. The grounds on which a merger may be disqualified are also not adequately spelt out, leaving considerable room for discretion.