Section 29A 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.
Section 29A is a new section inserted by the Competition (Amendment) Act, 2023, after Section 29. It sets a stage that the earlier procedure lacked: once the process under Section 29 is complete and the Commission thinks a combination has or is likely to have an appreciable adverse effect on competition, it issues a statement of objections, the parties explain, and they may offer modifications. The section also fixes short periods of seven days and twelve days for the Commission's responses.
This article follows the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023 (Section 29A has no earlier text), read with the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017). Upon completion of the process under Section 29, the Commission issues a statement of objections and the parties must explain within twenty-five days why the combination should be allowed to take effect. They may offer modifications. If the Commission does not accept them, it must communicate its reasons within seven days, and the parties then have twelve days to furnish revised modifications. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Where Section 29A sits
The gazette inserts Section 29A "after section 29 of the principal Act". It does not print a Chapter heading for the new section, so we describe its place only as "after Section 29". The earlier steps of the procedure are in Section 29, covered in our article on Sections 29 and 30; the final order is under Section 31, covered in our article on Section 31. The amended Section 29(6) says that, after receipt of all information, the Commission proceeds under "section 29A or section 31, as the case may be".
For a transaction facing this stage, a financial and legal due diligence team can help prepare the factual response and any modification offer before the twenty-five days start to run.
Section 29A(1): the statement of objections
The text reads: "Upon completion of the process under section 29, where the Commission is of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition, it shall issue a statement of objections to the parties identifying such appreciable adverse effect on competition and direct the parties to explain within twenty-five days of receipt of the statement of objections, why such combination should be allowed to take effect."
Four features follow from the printed words. The statement of objections follows completion of the process under Section 29. The Commission "shall" issue it once it holds the stated opinion. It must identify the appreciable adverse effect on competition. And the parties must explain, within twenty-five days of receipt, why the combination should be allowed to take effect.
Section 29A(2): the offer of modification
"Where the parties to the combination consider that such appreciable adverse effect on competition can be eliminated by suitable modification to such combination, they may submit an offer of appropriate modification to the combination along with their explanation to the statement of objections issued under sub-section (1) in such manner as may be specified by regulations."
The offer goes with the explanation to the statement of objections, so it is made inside the same twenty-five day window. The form and manner are left to regulations.
Example. The Commission issues a statement of objections to Jal Beverages Ltd and Pearl Drinks Ltd on their proposed merger, identifying the concern that the merged company would hold most of the shelf space in the regional market. Within twenty-five days of receipt, the parties submit their explanation together with an offer to divest a regional brand. This is an invented illustration of the structure in sub-sections (1) and (2).
Section 29A(3): when the Commission does not accept
"If the Commission does not accept the modification submitted by the parties under sub-section (2) it shall, within seven days from the date of receipt of the proposed modifications under that sub-section, communicate to the parties as to why the modification is not sufficient to eliminate the appreciable adverse effect on competition and call upon the parties to furnish, within twelve days of the receipt of the said communication, revised modification, if any, to eliminate the appreciable adverse effects on competition:
Provided that the Commission shall evaluate such proposal for modification within twelve days from receipt of such proposal:
Provided further that the Commission may suo motu propose appropriate modifications to the combination which may be considered by the parties to the combination."
The sequence and periods are:
| Step | Who | Period |
|---|---|---|
| Statement of objections issued | Commission | After completion of the process under Section 29 |
| Explanation (and any modification offer) | Parties | Within twenty-five days of receipt of the statement |
| Reasons why the modification is not sufficient | Commission | Within seven days from receipt of the proposed modifications |
| Revised modification, if any | Parties | Within twelve days of receipt of the communication |
| Evaluation of the proposal | Commission | Within twelve days from receipt of such proposal |
| Suo motu modification | Commission | May propose at any time under the further proviso; parties may consider it |
The first proviso speaks of evaluating "such proposal"; read with the main part, the natural reading is the revised modification furnished by the parties. We state it as the printed words and add nothing else. The further proviso is a separate power: the Commission may on its own propose appropriate modifications, and the parties "may consider" them. The text does not say what follows if the parties decline.
How modifications lead to approval
Section 31(3), as substituted in 2023, lets the Commission approve a combination subject to such modifications as it thinks fit, where the adverse effect can be eliminated by modification proposed by the parties or the Commission under Section 29(7) or Section 29A(2) or (3). The detail of Section 31 is in our dedicated article. Whether a modification is carried out in the time the Commission specifies is a question for Section 31(4) and (5).
The Commission's 2024 regulations
The manner of offering a modification is "as may be specified by regulations". As a pointer, regulations 24 and 25 of the Commission's Combinations Regulations, 2024, as notified in 2024, deal with the statement of objections and with modifications: regulation 24 says the Secretary shall communicate the statement of objections to the person who has given notice within four days, and regulation 25 deals with communication of the Commission's proposal within seven days, written acceptance or non-acceptance within five days, and a modification form. Our overview of those regulations summarises the instrument as a whole; later amendments should be checked.
For the wider context, see our guides on CCI approval for mergers and acquisitions and on regulation of combinations under Sections 5 and 6, and our article on the standstill period.
Before and after
Section 29A is entirely new. The consolidated text of Section 29(6) moved from the show-cause and publication steps directly to Section 31 within forty-five working days; the 2023 Act now adds this intermediate stage.
| Point | Before the 2023 Act | After the 2023 Act |
|---|---|---|
| Statement of objections | No such step in Section 29 | Section 29A(1): twenty-five days for the parties to explain |
| Offer of modification | Section 31(3) to (9) in the consolidated text (Commission proposes; parties accept) | Parties may offer modification with their explanation; Commission responds within seven days |
| Periods | Thirty working days for amendment of the Commission's proposed modification in Section 31(6) | Seven days, twelve days and twelve days in Section 29A(3) |
Need help responding to a statement of objections?
The twenty-five day window is short and the modification offer has to be framed with the facts. Our team can help assemble the response as part of financial and legal due diligence around your transaction.
Key takeaways
- Section 29A is new: the Commission issues a statement of objections once the process under Section 29 is complete and it holds the stated opinion.
- The parties have twenty-five days of receipt to explain why the combination should be allowed to take effect.
- They may offer a modification with the explanation; the Commission has seven days to explain a refusal, and the parties twelve days to revise.
- The Commission may also propose modifications on its own.
- 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
- Procedure for investigation of combinations
- Orders on combinations and deemed approval under Section 31
- Notice, forms, fees and timelines under the CCI Combinations Regulations, 2024
- Competition Act 2023 amendment: key changes
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.