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 (Lesser Penalty) Regulations, 2024 (No. 02 of 2024) set out how a cartel member can apply for a reduction in penalty under Section 46 of the Competition Act, 2002, and what the Commission requires in return. They were notified on 20 February 2024 and, as printed, came into force on the date of their publication in the Official Gazette. Later amendments should be checked.
There are 12 regulations and two Schedules. The first applicant with vital disclosure may get a reduction up to or equal to one hundred percent; the second in priority up to or equal to fifty percent; the third and later up to or equal to thirty percent. Lesser penalty plus gives an additional reduction up to or equal to thirty percent on the first cartel for disclosing a second cartel. Applications must be made before the Director General's report is received. The 2009 Lesser Penalty Regulations are repealed.
What the regulations cover
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 46 provides for lesser penalty on a full, true and vital disclosure and leaves the scale, the withdrawal procedure and the second-cartel reduction to regulations. These regulations are made under Section 64(1) and clauses (ga), (gb) and (gc) of Section 64(2), read with Section 46 and clause (b) of Section 27. The section is explained in Section 46; the penalty it reduces is in Section 27 and Section 48. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked. For the existing general introduction see leniency under the Competition Act.
A cartel member weighing a disclosure should take advice before approaching the Commission. Our legal dispute resolution team can assess the position.
Structure, regulation by regulation
| Regulation | Subject | Key periods and amounts, as printed |
|---|---|---|
| 1 | Short title and commencement | In force on publication in the Official Gazette (20 February 2024 notification) |
| 2 | Definitions | "Vital disclosure", "priority status", "newly disclosed cartel", "designated authority", "admission" |
| 3 | Conditions for lesser penalty or lesser penalty plus | Cease participation; vital disclosure; cooperate genuinely, fully, continuously and expeditiously; no concealment or false evidence; names of individuals; rejection only after a hearing |
| 4 | Grant of lesser penalty | Up to or equal to one hundred percent (first); fifty percent (second); thirty percent (third or later) |
| 5 | Grant of lesser penalty plus | Additional reduction up to or equal to thirty percent in the first cartel |
| 6 | Procedure for lesser penalty | Matter put up within ten working days; written application within fifteen days after an intimation |
| 7 | Procedure for lesser penalty plus | Same periods; before the Director General's report in the first cartel |
| 8 | Confidentiality | Identity and information treated as confidential, with exceptions |
| 9 | Inspection and certified copies | Non-confidential version, after the Director General's findings are forwarded |
| 10 | Withdrawal | Any time before the investigation report is received |
| 11 | Removal of difficulty | Decision of the Commission binding |
| 12 | Repeal and savings | 2009 Lesser Penalty Regulations repealed |
| Schedule I | Contents of the application for lesser penalty | Particulars (a) to (m) |
| Schedule II | Contents of the application for lesser penalty plus | Particulars (a) to (f) |
Conditions (regulation 3)
An applicant must cease further participation in the cartel from the time of disclosure unless the Commission directs otherwise; provide vital disclosure; provide all relevant information, documents and evidence; "co-operate genuinely, fully, continuously and expeditiously throughout the investigation and other proceedings"; not conceal, destroy, manipulate or remove relevant documents; and not give false evidence or omit material information (regulation 3(1)). "Vital disclosure" means full and true disclosure sufficient to enable the Commission to form a prima facie opinion about the existence of a cartel or which helps to establish the contravention of Section 3 (regulation 2(1)(k)). The applicant must give the names of individuals involved (regulation 3(2)). The Commission may reject an application for failure to give full and true disclosure or to comply with conditions, after giving an opportunity of being heard (regulation 3(3), (5) and (6)). Even if an application is rejected, the Commission and the Director General are at liberty to use the information, documents and evidence submitted in the ongoing matter, in accordance with Section 46 (regulation 3(7)); and the applicant may be inquired into for the contravention (regulation 3(8)). The Commission's discretion on the reduction is exercised having due regard to the stage at which the applicant comes forward, the evidence already held, the quality of information and the fulfilment of conditions (regulation 3(9)).
The reductions (regulations 4 and 5)
| Position | Reduction, as printed |
|---|---|
| First applicant: first to make a vital disclosure by submitting evidence enabling a prima facie opinion on a cartel, where the Commission lacked sufficient evidence (regulation 4(a)); also first to submit evidence establishing the contravention in a matter under investigation (proviso) | Up to or equal to one hundred percent |
| Second in the priority status, with significant added value (regulation 4(b), (c)(i)) | Up to or equal to fifty percent of the penalty imposed |
| Third or subsequent (regulation 4(c)(ii)) | Up to or equal to thirty percent of the penalty imposed |
| Lesser penalty plus: an earlier lesser penalty applicant discloses another cartel, enabling a prima facie opinion under Section 26(1) (regulation 5(1)) | Additional reduction up to or equal to thirty percent of the penalty imposed in the first cartel, besides up to or equal to one hundred percent in the newly disclosed cartel |
The reduction applies to the amount leviable under clause (b) of Section 27 and Section 48, as the Commission may decide. "Significant added value" means the extent to which the evidence enhances the Commission's or the Director General's ability to establish the existence of the cartel.
The printed illustration under regulation 5(1): in Cartel A, X and Y are lesser penalty applicants with first and second marker status, with reductions of up to or equal to one hundred percent and fifty percent respectively; Y, aware of Cartel B, reports it under regulation 7; subject to the conditions, Y is eligible for an additional reduction of up to or equal to thirty percent in respect of Cartel A, besides first marker status in respect of Cartel B. Regulation 5(3) lists the likelihood of the newly disclosed cartel being detected without a lesser penalty plus application among the factors.
Procedure (regulations 6 and 7)
An application containing the Schedule I material, or a written intimation by person, e-mail or fax to the designated authority, is put up before the Commission within ten working days (regulation 6(1)). An application can be made at any time during inquiry "but not after the report of investigation directed under section 26 of the Act has been received by the Commission" (proviso). The Commission marks the priority status and tells the applicant that this alone does not entitle it to lesser penalty (6(3)). If only an intimation is received, the written application must follow within a period not exceeding fifteen days, failing which priority status stands forfeited (6(4) and (5)). The next applicant is not evaluated until the evidence of the first has been evaluated (6(6)); if the first is not granted the benefit, the next moves up (6(7)). Regulation 7 applies a similar procedure to lesser penalty plus, which may be filed any time before the Director General's report in the first cartel is received.
Confidentiality, inspection, withdrawal and repeal
The identity of the applicant and the information it furnishes are treated as confidential, subject to disclosure required by law, written agreement or public disclosure by the applicant, and a Director General's power, with reasons and prior approval of the Commission, to disclose to a party for investigation (regulation 8). Non-confidential versions become available for inspection after the Director General's findings are forwarded to the party concerned, and recipients must not use them other than for proceedings under the Act (regulation 9). An applicant may withdraw before the investigation report is received, and the Director General or the Commission remain at liberty to use the evidence except the admission (regulation 10), matching Section 46(2) and (3). Regulation 12 repeals the 2009 Lesser Penalty Regulations with savings.
References to the 2009 General Regulations
Regulations 8 and 9 refer to the Competition Commission of India (General) Regulations, 2009, citing for example regulations 35, 37 and 50. Those 2009 regulations are not in the sources consulted. Regulation 57 of the General Regulations, 2024 repeals them and says a reference to them is deemed a reference to the corresponding provisions of the 2024 regulations; the numbers are quoted as printed and not mapped here. See the General Regulations overview.
Need help with a lesser penalty application?
Priority is decided by the date and time of receipt recorded by the designated authority, and a missed fifteen-day window forfeits it. Our legal dispute resolution team can prepare the Schedule I material and advise on the conditions.
Key takeaways
- 12 regulations and two Schedules, notified on 20 February 2024; check later amendments.
- Reductions by priority: up to or equal to one hundred percent, fifty percent, thirty percent.
- Lesser penalty plus: additional reduction up to or equal to thirty percent on the first cartel.
- Apply before the Director General's report; fifteen days to follow an intimation with a written application.
- Applicants must cooperate throughout; the 2009 regulations are repealed.
Read next
- Section 46 of the Competition Act, 2002: lesser penalty for cartel disclosure
- Section 48: liability of those in charge of a company
- How penalty is computed under the Monetary Penalty Guidelines, 2024
- 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.