Sections 21-21A 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 21 and 21A of the Competition Act, 2002 let a sector regulator and the Commission consult each other on a point of law that falls in the other's field. Section 21 deals with a reference from a statutory authority to the Commission; Section 21A deals with a reference from the Commission to a statutory authority. In both, the opinion must come within sixty days. The Competition (Amendment) Act, 2023 substitutes the proviso to Section 21(1) and amends Section 21A(1).
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. A statutory authority may refer to the Commission an issue raised by a party that its decision is or would be contrary to the Act, and the Commission gives its opinion within sixty days. After the 2023 Act, a statutory authority may also refer suo motu any issue that involves the Act or is related to promoting its objectives. The Commission may make a reference to a statutory authority on provisions of "an Act" whose implementation is entrusted to that authority. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 21(1): reference by a statutory authority
The consolidated text reads: "Where in the course of a proceeding before any statutory authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take is or would be, contrary to any of the provisions of this Act, then such statutory authority may make a reference in respect of such issue to the Commission".
"Statutory authority" has the meaning in Section 2(w): an authority, board, corporation, council, institute, university or other body corporate established by or under any Central, State or Provincial Act for regulating production or supply of goods or provision of services or markets for them. See our article on Section 2 definitions. The word "party" is now defined in Section 2(ka) as inserted in 2023.
The consolidated text includes a proviso inserted in 2007: "Provided that any statutory authority, may, suo motu, make such a reference to the Commission." The 2023 Act (its Section 16) substitutes the proviso with: "Provided that any statutory authority, may, suo motu, make a reference to the Commission on any issue that involves any provision of this Act or is related to promoting the objectives of this Act, as the case may be."
| Point | Before | After (2023 Act) |
|---|---|---|
| Reference on an issue raised by a party | As printed in the main part | Not changed |
| Suo motu reference | "such a reference", that is, on the issue described in the main part | On "any issue that involves any provision of this Act or is related to promoting the objectives of this Act, as the case may be" |
In plain terms, the former proviso allowed an authority to make on its own motion the same kind of reference the main part describes, which depends on an issue raised by a party. The substituted proviso describes the suo motu reference on its own terms, so it no longer depends on a party raising the issue.
If your business appears before a regulator and the issue touches competition, a legal consultation can help identify whether a reference may follow.
Section 21(2): the opinion within sixty days
Section 21(2), as substituted in 2007, reads: "On receipt of a reference under sub-section (1), the Commission shall give its opinion, within sixty days of receipt of such reference, to such statutory authority which shall consider the opinion of the Commission and thereafter, give its findings recording reasons therefor on the issues referred to in the said opinion." The 2023 Act does not amend sub-section (2). The earlier text, shown in footnote 32, had provided for the Commission to hear the parties; we mention that only as a history line. The sixty days is a period "of receipt of such reference".
Note what the text does not say. It does not say that the Commission's opinion binds the authority; it says the authority "shall consider" the opinion and give findings recording reasons. We add nothing beyond those words.
Section 21A(1): reference by the Commission
Section 21A was inserted in 2007 under the heading "Reference by Commission". The consolidated text of sub-section (1) reads: "Where in the course of a proceeding before the Commission an issue is raised by any party that any decision which, the Commission has taken during such proceeding or proposes to take, is or would be contrary to any provision of this Act whose implementation is entrusted to a statutory authority, then the Commission may make a reference in respect of such issue to the statutory authority".
The consolidated text prints "any provision of this Act whose implementation is entrusted to a statutory authority". This is a drafting slip: it reads as though the Competition Act's own provisions are implemented by another authority. The 2023 Act (its Section 17(a)) substitutes "an Act" for "this Act", so the sub-section reads "contrary to any provision of an Act whose implementation is entrusted to a statutory authority". The amendment therefore corrects the sense, and we flag the earlier wording as a slip.
The 2023 Act (Section 17(b)) also substitutes the proviso: "Provided that the Commission, may, suo motu, make a reference to a statutory authority on any issue that involves provisions of an Act whose implementation is entrusted to that statutory authority."
| Point | Before | After (2023 Act) |
|---|---|---|
| Law whose implementation is entrusted to the authority | "this Act" | "an Act" |
| Suo motu proviso | "Provided that the Commission, may, suo motu, make such a reference to the statutory authority." | Reference "on any issue that involves provisions of an Act whose implementation is entrusted to that statutory authority" |
Example. During a proceeding before the Commission about a pricing practice of an electricity distributor, a party argues that the Commission's proposed direction would contradict a tariff rule that a sector regulator administers under its own statute. The Commission may make a reference on that issue to the regulator. The same provision lets the Commission refer the issue suo motu without a party raising it.
Section 21A(2): the authority's opinion
Section 21A(2): "On receipt of a reference under sub-section (1), the statutory authority shall give its opinion, within sixty days of receipt of such reference, to the Commission which shall consider the opinion of the statutory authority, and thereafter give its findings recording reasons there for on the issues referred to in the said opinion." The 2023 Act does not amend it. The consolidated text prints "there for" as two words and puts the footnote mark before the heading; the meaning is unaffected.
How this sits with the Commission's other powers
Section 18 now lets the Commission enter into memoranda or arrangements with statutory authorities and departments of Government; see our article on Sections 18 and 22. The inquiry procedure in Section 26 begins with a reference from the Central Government, a State Government or a statutory authority under Section 19(1)(b), which is a different route from Section 21; see our articles on Section 19(1) and (2) and on Section 26. For the general role of the Commission, see our guide on CCI powers.
What the 2023 Amendment Act changed
| Section | Before | After |
|---|---|---|
| 21(1) main part | Reference on issue raised by a party | Not changed |
| 21(1) proviso | Suo motu "such a reference" | Substituted: any issue involving any provision of this Act or related to promoting its objectives |
| 21(2) | Opinion within sixty days | Not changed |
| 21A(1) main part | "this Act" | "an Act" |
| 21A(1) proviso | Suo motu "such a reference" | Substituted: any issue involving provisions of an Act entrusted to that authority |
| 21A(2) | Opinion within sixty days | Not changed |
Need help where a regulator and the Commission both have a say?
Where a regulated business faces both a sector regulator and the competition law, the questions of which body decides what can be complex. Our team can help you plan your submissions in either forum; begin with a legal consultation.
Key takeaways
- A statutory authority may refer to the Commission an issue raised by a party that its decision would be contrary to the Act; the Commission gives its opinion within sixty days.
- After the 2023 Act, a statutory authority may refer suo motu any issue involving any provision of the Act or related to promoting its objectives.
- The Commission may refer to a statutory authority on provisions of "an Act" whose implementation is entrusted to it; the statutory authority also has sixty days.
- The opinion is to be considered, with findings recording reasons; the text does not call it binding.
- 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
- Duties of the Commission and its meetings
- Inquiry on information or reference and the three-year limit
- Procedure for inquiry, prima facie order and Director General report
- CCI powers and procedure
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.