Section 41 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 41 of the Competition Act, 2002 sets out the Director General's duty to assist the Commission in investigating contraventions and the powers that go with it. The Competition (Amendment) Act, 2023 replaces the old sub-section (3) (which borrowed the inspector provisions of the Companies Act, 1956) with ten sub-sections, (3) to (12), that spell out the duty of a party's officers to produce records, the custody of documents, examination on oath, and search and seizure through the Chief Metropolitan Magistrate, Delhi. It also substitutes the Explanation.
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. The Director General investigates when directed by the Commission and has the civil court powers in Section 36(2). Officers, other employees and agents of a party under investigation must preserve and produce records and give all assistance. Documents may be kept for one hundred and eighty days, and for a further one hundred and eighty days by written order. Persons may be examined on oath, and search and seizure is on an order of the Chief Metropolitan Magistrate, Delhi. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 41(1) and (2): the base of the Director General's role
Section 41(1) says the Director General "shall, when so directed by the Commission, assist the Commission in investigating into any contravention of the provisions of this Act or any rules or regulations made thereunder." The direction comes from the Commission, usually after a prima facie opinion under Section 26; see our article on Section 26.
Section 41(2): "The Director General shall have all the powers as are conferred upon the Commission under subsection (2) of section 36." The consolidated text prints "subsection" without a hyphen. Those powers are the civil court powers described in our article on Sections 35 and 36: summoning and enforcing attendance and examining on oath, discovery and production of documents, evidence on affidavit, commissions for examination of witnesses or documents, and requisitioning public records. Sub-sections (1) and (2) are not amended in 2023.
Before the 2023 Act: sub-section (3) and the Explanation, in one line
The consolidated text of sub-section (3) said that, without prejudice to sub-section (2), "sections 240 and 240A of the Companies Act, 1956 (1 of 1956), so far as may be, shall apply to an investigation made by the Director General or any other person investigating under his authority, as they apply to an inspector appointed under that Act", with an Explanation reading "the Central Government" as "the Commission" and "Magistrate" as "the Chief Metropolitan Magistrate, Delhi". The 2023 Act replaces both. The Companies Act, 1956 references are quoted as printed; check the current company law for the corresponding provision. If your organisation expects an investigation, or is already the subject of one, our legal dispute resolution team can help you plan record-keeping and the response to requests from the Director General.
Section 41(3) to (12) as substituted in 2023
The 2023 Act (its Section 26(a)) substitutes sub-sections (3) to (12) for the old sub-section (3). In summary and in the Act's words:
(3) Duty of officers, employees and agents. Without prejudice to sub-section (2), "it shall be the duty of all officers, other employees and agents of a party which are under investigation— (a) to preserve and to produce all information, books, papers, other documents and records of, or relating to, the party which are in their custody or power to the Director General or any person authorised by it in this behalf; and (b) to give all assistance in connection with the investigation to the Director General."
(4) Persons other than the party. "The Director General may require any person other than a party referred to in sub-section (3) to furnish such information or produce such books, papers, other documents or records before it or any person authorised by it in this behalf if furnishing of such information or the production of such books, papers, other documents or records is relevant or necessary for the purposes of its investigation."
(5) Custody. "The Director General may keep in his custody any information, books, papers, other documents or records produced under sub-section (3) or sub-section (4) for a period of one hundred and eighty days and thereafter shall return the same to the person by whom or on whose behalf were produced." The first proviso allows the Director General to call for them again "for a further period of one hundred and eighty days by an order in writing". The second proviso says certified copies may be provided to the party or person on whose behalf they were produced "at their own cost".
(6) Examination on oath. The Director General "may examine on oath— (a) any of the officers and other employees and agents of the party being investigated; and (b) with the previous approval of the Commission, any other person, in relation to the affairs of the party being investigated" and may administer an oath and require any of them to appear personally.
(7) Record of examination. It "shall be recorded in writing and shall be read over to or by, and signed by, the person examined and may thereafter be used in evidence against it."
(8) Application for seizure. Where the Director General has reasonable grounds to believe that information, books, papers, other documents or records of, or relating to, any party or person "may be destroyed, mutilated, altered, falsified or secreted", he may apply to the Chief Metropolitan Magistrate, Delhi for an order for seizure.
(9) Police and Central Government officers. The Director General may make requisition of the services of any police officer or any officer of the Central Government to assist for the purposes in sub-section (10), and it is the duty of every such officer to comply.
(10) Authorisation by the Chief Metropolitan Magistrate, Delhi. After considering the application and hearing the Director General, the Magistrate "may ... by order, authorise the Director General— (a) to enter, with such assistance, as may be required, the place or places where such information, books, papers, other documents or records are kept; (b) to search that place or places in the manner specified in the order; and (c) to seize information, books, papers, other documents or records as it considers necessary for the purpose of the investigation". A proviso allows certified copies to be provided to the party or person from whose place the documents were seized "at its cost".
(11) Custody of seized records. The Director General keeps seized records "for such period not later than the conclusion of the investigation as it considers necessary" and then returns them and informs the Chief Metropolitan Magistrate; the proviso allows copies, extracts or identification marks before return.
(12) Procedure. "Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973, relating to search or seizure made under that Code." The gazette margin shows "2 of 1974". The Code is quoted as printed; check the current law for the corresponding provision.
The substituted Explanation
The 2023 Act (Section 26(b)) substitutes the Explanation: "(a) 'agent', in relation to any person, means any one acting or purporting to act for or on behalf of such person, and includes the bankers, and persons employed as auditors and legal advisors, by such person; (b) 'officers', in relation to any company or body corporate, includes any trustee for the debenture holders of such company or body corporate; (c) any reference to officers and other employees or agents shall be construed as a reference to past as well as present officers and other employees or agents, as the case may be."
So the duty reaches past as well as present officers, employees and agents, and "agent" expressly includes bankers, auditors and legal advisors. The text does not say how privilege or confidentiality interacts with that list, and we add nothing on it.
Example. In an investigation of Orbit Cement Ltd, its officers and a former finance manager (a past employee, per clause (c)) must preserve and produce records under sub-section (3); a supplier that is not a party can be required to furnish relevant information under sub-section (4).
What the 2023 Amendment Act changed in Section 41
| Provision | Before (consolidated text) | After (2023 Act) |
|---|---|---|
| 41(1), (2) | Assist the Commission; powers under Section 36(2) | Not changed |
| 41(3) | Sections 240 and 240A of the Companies Act, 1956 applied as to an inspector | Duty of officers, employees and agents to preserve, produce and assist |
| 41(4) to (7) | None | Persons other than a party; custody for one hundred and eighty days; examination on oath; record of examination |
| 41(8) to (12) | Magistrate role through the Explanation | Seizure through the Chief Metropolitan Magistrate, Delhi; requisition of police; custody of seized records; Code of Criminal Procedure, 1973 as printed |
| Explanation | Reading "Central Government" as "the Commission" and "Magistrate" as the Chief Metropolitan Magistrate, Delhi | Substituted: agent, officers, past as well as present |
Penalties for failing to comply with the Director General's directions are in Sections 42 and 43, covered in later articles. For how an inquiry proceeds, see our guide on CCI powers, procedure and enforcement; for the comparable regime in company law, see our post on inspection and investigation under the Companies Act, which is about a different law.
Need help preparing for a Director General investigation?
An investigation puts records, people and timing under scrutiny. Our team can help you plan what to preserve, who should respond and how to deal with requests and seizures. Speak to us about legal dispute resolution and bring any notice or direction you have received.
Key takeaways
- The Director General assists the Commission when so directed and has the civil court powers in Section 36(2).
- Officers, other employees and agents of a party under investigation must preserve and produce records and give all assistance.
- Records may be kept for one hundred and eighty days, and a further one hundred and eighty days by written order.
- Persons may be examined on oath, and the statement may be used in evidence.
- Search and seizure is on an order of the Chief Metropolitan Magistrate, Delhi, following the Code of Criminal Procedure, 1973 as printed.
- 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 inquiry, prima facie order and Director General report
- Director General, Secretary, experts and staff
- Contravention of Commission orders and compensation
- Appearance before the Commission and its 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.