Competition Commission explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Competition Commission of India (Determination of Monetary Penalty) Guidelines, 2024 (No. 01 of 2024) set out how the Commission goes about fixing the amount of monetary penalty for contraventions of the Competition Act, 2002. They were notified on 6 March 2024 under Section 64B(1) read with Section 64B(3) and, as printed, came into force on the date of their publication in the Official Gazette. They are guidelines, not regulations, and the text calls its numbered parts "paragraphs". Later amendments should be checked.
The Guidelines have eight paragraphs in seven Chapters. For an enterprise under Section 27(b) the Commission begins with an amount up to thirty percent of the average relevant turnover or average income, then adjusts it for listed factors within the legal maximum. Cartel cases use profit after tax under the proviso. Persons under Section 48 are capped at ten percent of average income; failure to notify a combination under Section 43A has its own factors, with the one percent ceiling in the Act.
What the Guidelines cover and why they matter
As per the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, Section 64B(3) requires the Commission to publish guidelines on the appropriate amount of penalty, and Section 64B(4) requires it to consider them when imposing penalty under Section 27(b), Section 43A or Section 48, and to give reasons for any divergence. Guidelines are not binding on the Commission under Section 64B(2). The Guidelines implement that framework; see Sections 64A and 64B. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Facing a possible penalty? Our legal dispute resolution team can model the likely range and prepare the submissions on the listed factors.
Structure, paragraph by paragraph
| Chapter | Paragraph | Subject | Key figures, as printed |
|---|---|---|---|
| I Preliminary | 1 | Short title and commencement | In force on publication in the Official Gazette |
| I | 2 | Definitions | "Relevant turnover", "legal maximum", "repeated contravention" (more than once, of the same or any other provision), "year" means financial year |
| II Enterprises under Section 27(b) | 3 | Methodology | Up to thirty percent of average relevant turnover or income; adjusting factors; average of three years preceding the year in which the Director General's report is received |
| III Proviso to Section 27(b) | 4 | Cartels | Profit after tax considered |
| IV Persons under Section 48 | 5 | Methodology | Not more than ten percent of average income of the last three preceding financial years |
| V Section 43A | 6 | Failure to notify a combination | Up to one percent of total turnover or assets or deal value, whichever is higher |
| VI Sections 42, 43, 44 and 45 | 7 | Methodology | Minimum and maximum in each provision considered |
| VII Residuary powers | 8 | Divergence | Reasons recorded in writing; lesser penalty guided by the Lesser Penalty Regulations |
Enterprises under Section 27(b) (paragraph 3)
Paragraph 3(1) says the Commission "to begin with" considers an amount up to thirty percent of the average relevant turnover or average income, as the case may be, having regard to the nature and gravity of the contravention, the nature of the industry or sector affected and its implications for the economy, and any other factor. "Relevant turnover" means the turnover derived by an enterprise directly or indirectly from the sale of products and/or provision of services to which the contravention relates (paragraph 2(1)(h)).
Paragraph 3(2) allows adjustment of that amount, subject to the legal maximum, having regard to: duration of the contravention or involvement; role in orchestrating the conduct; recourse to coercive or retaliatory measures; repeated contravention; admission of contravention and the stage of admission; cogent evidence that involvement was substantially limited; extent of cooperation during the Director General's investigation or the Commission's proceedings; voluntary termination of the conduct under intimation to the Commission; implementation of a competition compliance programme; and any other factor.
Paragraph 3(3) says the average may be taken from the relevant turnover or income of three years preceding the year in which the Director General's investigation report is received, and a proviso allows, for reasons recorded in writing, the three years preceding the contravention. Paragraph 3(4) and (5) require turnover or income to be based on audited financial statements furnished by a certificate from a statutory auditor (or a Chartered Accountant) with an affidavit, or the amount so certified if audited statements are not available. Paragraph 3(6) allows global turnover where relevant turnover cannot be determined, and paragraph 3(7) allows a further increase, subject to the legal maximum, if the amount does not create deterrence. For how turnover and income are measured see the Turnover or Income Regulations overview.
Cartels (paragraph 4)
Where the contravention is an anti-competitive agreement entered into by a cartel, the Commission may impose penalty under the proviso to Section 27(b); "profit after tax shall be considered", and the factors in paragraph 3(2) may be considered.
Persons under Section 48 (paragraph 5)
Paragraph 5(1): the penalty under Section 48(1) or 48(3) "shall not be more than ten percent of the average income of the person for the last three preceding financial years". Paragraph 5(2) lists factors: nature and gravity of the company's contravention, the person's role, extent and duration of involvement, cooperation, repeated contravention, cogent evidence of substantially limited involvement, and other factors. Paragraph 5(3): average income is based on the gross total income per returns filed under the Income Tax Act, 1961 and rules (named as printed; check the current law and see our income-tax guides), excluding income from house property and capital gains, for the same years as the company. Paragraph 5(4): if returns are not available, total income certified by a Chartered Accountant and supported by an affidavit. Paragraph 5(5): for cartels, the proviso to Section 48(1) or 48(3), with the paragraph 5(2) factors. See Section 48.
Section 43A (paragraph 6)
Paragraph 6(1) repeats the triggers of Section 43A (failure to give notice under Section 6(2) or (4), contravention of Section 6(2A), or submitting information in an inquiry under Section 20(1)) and the ceiling of one percent of total turnover or assets or the value of transaction referred to in clause (d) of Section 5, whichever is higher. Paragraph 6(2) lists factors: consummation or part consummation without notice; violation of standstill obligations before or after filing; non-furnishing of information during an inquiry under Section 20(1); voluntary filing; conduct including voluntary disclosures and cooperation; and other factors. See Section 43A.
Sections 42 to 45 (paragraph 7)
Paragraph 7(1): the Commission "shall consider the minimum and maximum penalty leviable as per the respective provision of the Act". Paragraph 7(2) lists: extent and reasons of non-compliance or non-cooperation; nature of misleading information; knowledge of the person that the information was untrue or incomplete; repeated contravention; other factors. See Sections 42 and 42A and Sections 43, 44 and 45.
Departure and lesser penalty (paragraph 8)
Paragraph 8(1) permits the Commission, "considering the particularities of a given case and in exceptional circumstances", to divert from the Guidelines. Paragraph 8(2): the reasons for divergence from the general methodology under Section 27(b), Section 43A and Section 48 "shall be recorded in writing". Paragraph 8(3): any reduction in the penalty amount for Section 46 is guided by the Lesser Penalty Regulations, 2024; see that overview.
Where other instruments use the Guidelines
The Settlement Regulations, 2024 define "Penalty Guidelines" as guidelines under Section 64B(3) and say the base amount for settlement is determined guided by them: see Settlement. The Guidelines in turn rely on the Turnover or Income Regulations for the meaning of "income" and "turnover".
Need help with a penalty submission?
Where the Commission starts, how it adjusts, and what you can say on each factor affect the final figure. Our legal dispute resolution team can prepare the turnover evidence, structure the submission and plan around the factors in paragraphs 3, 5, 6 and 7.
Key takeaways
- Eight paragraphs in seven Chapters, notified on 6 March 2024; check later amendments.
- Starting point under Section 27(b): up to thirty percent of average relevant turnover or income.
- Cartels: profit after tax. Persons under Section 48: not more than ten percent of average income. Section 43A: one percent ceiling in the Act.
- The Commission may depart in exceptional circumstances but must record reasons in writing.
- Audited statements or certified figures with an affidavit support every figure.
Read next
- Sections 64A and 64B: making of regulations and penalty guidelines
- Section 27: orders and penalty after inquiry
- Section 43A: penalty for not notifying a combination
- Penalties under the Competition Act for cartels and abuse
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.