Sections 12-15 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.
Sections 12 to 15 of the Competition Act, 2002 deal with four connected matters: what the Chairperson and Members may not do after they leave office (Section 12), the Chairperson's administrative powers (Section 13), the terms of service of Members (Section 14), and the rule that a vacancy or defect in the Commission does not invalidate its acts (Section 15). The Competition (Amendment) Act, 2023 substitutes Section 12 and leaves Sections 13 to 15 unchanged.
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. For two years after leaving office the Chairperson and Members may not accept employment in, advise as a consultant, retainer or in any other capacity, or be connected with the management of an enterprise that is or has been a party before the Commission, or any person who appears or has appeared before it under Section 35. They also may not represent any person or enterprise before the Commission after ceasing to be in service. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 12 after the 2023 Act
The 2023 Act (its Section 11) substitutes a new Section 12. In its words:
"12. (1) The Chairperson and other Members shall, for a period of two years from the date on which they cease to hold office, not accept any employment in or advise as a consultant, retainer or in any other capacity whatsoever, or be connected with the management or administration of— (a) any enterprise which is or has been a party to a proceeding before the Commission under this Act; or (b) any person who appears or has appeared before the Commission under section 35.
(2) Notwithstanding anything contained in section 35, the Chairperson or any other Member after retirement or otherwise ceasing to be in service for any reason shall not represent for any person or enterprise before the Commission:
Provided that nothing contained in this section shall apply to any employment under the Central Government or a State Government or local authority or in any statutory authority or any corporation established by or under any Central, State or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013."
The proviso is printed after sub-section (2) in the gazette but speaks of "this section"; we read it as applying to the whole section. The Companies Act, 2013 is quoted as printed; check the current company law for the corresponding provision.
If you are a company that wants to engage a former official, or are advising one, a legal consultation before the engagement is sensible.
Before the 2023 Act, in one line
The consolidated text barred the Chairperson and Members, for two years from ceasing to hold office (the 2007 amendment replaced "one year"), from accepting "any employment in, or connected with the management or administration of, any enterprise which has been a party to a proceeding before the Commission", with a proviso for employment under the Government, a statutory authority or a Government company, as defined in section 617 of the Companies Act, 1956.
What the new Section 12 adds
| Point | Before | After (2023 Act) |
|---|---|---|
| Period | Two years | Two years |
| What is barred | Accepting employment in, or connected with the management or administration of, an enterprise that has been a party to a proceeding | Not accept any employment in, or advise as a consultant, retainer or in any other capacity whatsoever, or be connected with the management or administration of the persons in (a) and (b) |
| Enterprises covered | An enterprise which has been a party | An enterprise which "is or has been" a party |
| Persons who appear | Not covered | Any person who appears or has appeared before the Commission under Section 35 |
| Representation | Not covered | Sub-section (2): no representation for any person or enterprise before the Commission after retirement or otherwise ceasing to be in service for any reason, notwithstanding Section 35 |
| Exemption | Employment under the Government, local authority, statutory authority, corporation or Government company as defined in the Companies Act, 1956 | Same classes; Government company as defined in clause (45) of Section 2 of the Companies Act, 2013 |
Two details are worth noting. First, the representation bar in sub-section (2) is not stated to last two years; the printed words say "after retirement or otherwise ceasing to be in service for any reason shall not represent for any person or enterprise before the Commission". We state no limit that the text does not. Second, Section 35 is the provision about who may appear before the Commission, explained in our article on appearance before the Commission. A former Member is therefore barred from representing any person even though Section 35 otherwise allows representation.
Example. Mr. Arjun Rao ceased to hold office as a Member eight months ago. A manufacturer that is, or has been, a party to a proceeding before the Commission offers him a consultancy. The words "advise as a consultant, retainer or in any other capacity whatsoever" mean that a consultancy falls within the bar, not only a salaried job. Employment with a State Government department would fall within the proviso, because the Act does not apply the bar to such employment.
The wording is wide.
Section 13: administrative powers of the Chairperson
The consolidated text prints Section 13 as substituted by the 2007 amendment, which replaced an earlier "Member Administration" arrangement. It says: "The Chairperson shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Commission: Provided that the Chairperson may delegate such of his powers relating to administrative matters of the Commission, as he may think fit, to any other Member or officer of the Commission." The text carries a stray closing quotation mark in the consolidated copy. The section covers administrative matters only; it does not give the Chairperson any power in a decision on the merits.
Section 14: salary and terms of service
Section 14(1) says the salary and other terms and conditions of service of the Chairperson and other Members, "including travelling expenses, house rent allowance and conveyance facilities, sumptuary allowance and medical facilities shall be such as may be prescribed." Section 14(2) adds that the salary, allowances and other terms and conditions of service of the Chairperson or a Member "shall not be varied to his disadvantage after appointment". The figures are in rules that are not in the sources consulted and we give none.
Section 15: vacancies and defects do not invalidate proceedings
Section 15 says that no act or proceeding of the Commission "shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Commission; or (b) any defect in the appointment of a person acting as a Chairperson or as a Member; or (c) any irregularity in the procedure of the Commission not affecting the merits of the case." This clause protects the Commission's orders from challenge on the three listed grounds. It does not say that other defects are protected, and the text must be read as printed. For the composition of the Commission and the acting arrangements, see our articles on composition and on term of office and removal.
What the 2023 Amendment Act changed in Sections 12 to 15
| Section | Before | After |
|---|---|---|
| 12 | One restriction for two years; Companies Act, 1956 reference | Substituted: wider bar, persons appearing under Section 35, representation bar, Companies Act, 2013 reference |
| 13 | Chairperson's administrative powers | Not changed |
| 14 | Service terms as prescribed | Not changed |
| 15 | Vacancy not to invalidate proceedings | Not changed |
For the Commission's general role, see the guide on CCI powers. For the Government-company reference as a matter of company law, see our post on Government companies under the Companies Act, 2013; that post is about the Companies Act, not the Competition Act.
Need help with a post-office engagement or an appearance question?
The reach of Section 12 is wide and applies to consultancies and advice as well as employment. If you plan to engage a former Member or have a question on who may appear before the Commission, our team can review the position with you. Start with a legal consultation.
Key takeaways
- Section 12 is substituted in 2023: two years, employment and advice in any capacity, and any person who appears before the Commission under Section 35.
- Sub-section (2) separately bars representation before the Commission after ceasing to be in service for any reason.
- Employment under the Government, a statutory authority or a Government company is outside the bar.
- Section 13 gives the Chairperson general superintendence of administrative matters; Section 14 protects Members' terms from adverse variation; Section 15 saves proceedings from vacancies and defects.
- The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Read next
- Term of office, resignation and removal of Members
- Director General, Secretary, experts and staff
- Appearance before the Commission and its procedure
- Appearing before the CCI: practice guide
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.