2. SECTION 31 of MRTP
• THE MRTP Commission could, on its own
information, or on the application of the
Directorate – General of Investigation and
Registration, or on a reference from the
central government, make an inquiry into
whether a monopolistic trade practice was
being practices by any undertaking, or if such
a practice was prevalent in respect of any
goods or services.
3. • If the commission found after inquiry that the
monopolistic trade practice was likely to
operate against the public interest, it could
report that finding to the central government.
The central government may pass such orders
as it though fit to remedy or prevent any
mischief which resulted, or could result from
that monopolistic trade practice.
4. • A monopolistic trade practice is one, which has or is
likely to have the effect of:
1. maintaining the prices of goods or charges for the
services at an unreasonable level by limiting,
reducing or otherwise controlling the production,
supply or distribution of goods or services;
2. unreasonably preventing or lessening competition in
the production, supply or distribution of any goods or
services whether or not by adopting unfair method or
fair or deceptive practices;
3. limiting technical development or capital
investment to the common detriment;
5. 4. deteriorating the quality of any goods produced, supplied
or distribute; and
5. increasing unreasonably -
– the cost of production of any good; or
– charges for the provision, or maintenance, of any services; or
– the prices for sale or resale of goods; or
– the profits derived from the production, supply or distribution
of any goods or services.
6. A monopolistic trade practice is deemed to be prejudicial to
the public interest, unless it is expressly authorized under
any law or the Central Government permits to carry on any
such practice.
6. • Inquiry into Monopolistic Trade Practices
• The Commission may inquire into
• Any monopolistic trade practice,
• Upon a reference made to it by the Central
Government or
• Upon an application made to it by the Director
General or
• Upon it own knowledge or information
7. • Relief Available
a. Where the inquiry by the Commission reveals that the trade
practice inquired into operates or is likely to operate
against public interest, the Central Government may pass
such orders as it thinks fit to remedy or present any
mischief resulting from such trade practice.
b. On an inquiry report of the Commission, the Central
Government may-
– Prohibit the owner(s) of the concerned undertaking(s) from
continuing to indulge in a monopolistic trade practice; or
– Prohibit the owner of any class of undertakings or undertakings
generally, from continuing to indulge in any monopolistic trade
practice in relation to the goods or services.
8. c. The Central Government may also make an
order:
i. Regulating the production, storage, supply,
distribution, or control of any goods or services by
an undertaking and fixing the terms of their sale
(including prices) or supply;
ii. Prohibit any act or practice or commercial policy
which prevents or lessens competition in the
production, storage, supply or distribution of any
goods or services;
9. iii. Fixing standards for the goods used or produced by an
undertaking;
iv. Declaring unlawful the making or carrying out of the
specified agreement;
v. Requiring any party to the specified agreement to
determine the agreement within the specified time, either
wholly or to specified extent;
vi. Regulating the profits which may be derived from the
production, storage, supply, distribution or control of any
goods or services; or
vii. Regulating the quality of any goods or services so that
their standard does not deteriorate.
10. Exceptions
• (a) the trade practice was expressly authorised
by any enactment for the time being in force;
and
• (b) the central government, or being satisfied
that the trade practice is necessary, permit, by
a written order, the owner of any undertaking
to carry on the trade practice.
11. Before issuing this permission, the
central government was to be satisfied
that the trade practice was necessary
• (a) to meet the requirements of the defence of
India or any part of India or for the security of the
state
• (b) to ensure the maintenance of supply of goods
and services essential to the community
• (c) to give effect to the terms of any agreement to
which the central government was a party.
