Sections 49 to 51 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 49, 50 and 51 of the Competition Act, 2002 deal with the Commission's advisory role and its money. Section 49 lets the Central Government or a State Government ask the Commission for an opinion on the effect of a policy on competition, and requires the Commission to promote competition advocacy. Section 50 allows Parliament-appropriated grants. Section 51 sets up the Competition Fund.
On a reference from the Central Government or a State Government, the Commission must give its opinion on the effect of a policy on competition within sixty days, and that opinion does not bind the government. The Commission must take suitable measures for competition advocacy, creating awareness and training; the 2023 Act adds "or culture" after "competition advocacy". The Competition Fund receives grants, fees, interest and, after 2023, other sums decided upon by the Government.
How this article reads the Act
This article follows 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 49 is touched by clause 36 of the amending Act, Section 51 by clause 37, and Section 50 is not touched. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked. No commencement date is given. Businesses and trade bodies that want to follow policy debates can discuss their needs with our legal consultation team.
Section 49(1): a reference for the Commission's opinion
As printed, Section 49(1) says that the Central Government may, in formulating a policy on competition (including review of laws related to competition) or any other matter, and a State Government may, in formulating a policy on competition or on any other matter, as the case may be, make a reference to the Commission for its opinion on the possible effect of such policy on competition. On the receipt of such a reference, the Commission shall, within sixty days of making such reference, give its opinion to the Central Government or the State Government, as the case may be, which may thereafter take further action as it deems fit.
Note the wording "within sixty days of making such reference": the period is counted from the making of the reference, not from its receipt. This is printed so in the consolidated text and is flagged here rather than corrected. The sub-section is not touched by the 2023 Act.
Section 49(2): the opinion does not bind
"The opinion given by the Commission under sub-section (1) shall not be binding upon the Central Government or the State Government, as the case may be, in formulating such policy." The government may follow it or not. (The words "or the State Government, as the case may be" were inserted in 2007, per the printed footnote; we do not describe the earlier text.)
Section 49(3): advocacy, awareness and training, as amended
As printed, Section 49(3) says the Commission shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues. Clause 36 of the Competition (Amendment) Act, 2023 inserts, after the words "competition advocacy", the words "or culture". After the amendment, the sub-section reads in the relevant part: "... for the promotion of competition advocacy or culture, creating awareness and imparting training about competition issues." The clause fits the printed words exactly.
Section 50: grants by the Central Government
Section 50 says the Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Commission grants of such sums of money as the Government may think fit for being utilised for the purposes of the Act. It is not touched by the 2023 Act. The grant is discretionary ("may") and depends on a parliamentary appropriation.
Section 51: the Competition Fund
Sub-section (1). There shall be constituted a fund to be called the "Competition Fund", and there shall be credited to it: (a) all Government grants received by the Commission; (b) omitted (the printed text shows "Omitted by Competition (Amendment) Act, 2007"); (c) the fees received under the Act; (d) the interest accrued on the amounts referred to in clauses (a) and (c).
Clause 37 of the amending Act inserts, after clause (d), a new clause: "(e) all sums received by the Commission from such other sources as may be decided upon by the Government." The clause is clear; what the gazette does not do is amend clause (d), which still speaks of interest on the amounts in clauses (a) and (c). The sources say nothing further, so we do not read any interest on clause (e) sums into it.
Sub-section (2). The Fund shall be applied for meeting (a) the salaries and allowances payable to the Chairperson and other Members and the administrative expenses including the salaries, allowances and pension payable to the Director General, Additional, Joint, Deputy or Assistant Directors General, the Registrar and officers and other employees of the Commission; and (b) the other expenses of the Commission in connection with the discharge of its functions and for the purposes of the Act. The word "Registrar" appears here although Sections 17 and 36 print "Secretary"; this is a drafting slip in the printed text and is flagged, not corrected.
Sub-sections (3) and (4). The Fund shall be administered by a committee of such Members of the Commission as may be determined by the Chairperson, and the committee shall spend monies out of the Fund for carrying out the objects for which it has been constituted.
How the Fund relates to other money in the Act
The Fund is not the Consolidated Fund of India. Penalties (Section 47, as amended) and settlement amounts (Section 48A(8)) are credited to the Consolidated Fund; the fees received under the Act go to the Competition Fund under Section 51(1)(c). The 2024 Settlement and Commitment Regulations, as notified, name "Competition Commission of India (Competition Fund)" as payee of the fee; see our overviews of the Settlement Regulations and Commitment Regulations. For penalties see Sections 47 and 48C.
What the 2023 Amendment Act changed
| Provision | Before (consolidated text) | After (as amended by the Competition (Amendment) Act, 2023) |
|---|---|---|
| Section 49(3) | "promotion of competition advocacy, creating awareness and imparting training" | "promotion of competition advocacy or culture, creating awareness and imparting training" |
| Section 51(1) | Clauses (a), (b) omitted, (c) and (d) | New clause (e): all sums received from such other sources as may be decided upon by the Government |
| Section 49(1) and (2), Section 50 | As printed | Not changed |
Who this affects
Departments drafting policy, State Governments, trade associations that respond to consultations, and the Commission itself. For readers outside government, the practical point is that Commission opinions under Section 49 are advice only. The wider functions of the Commission are in CCI powers.
Practical example
A State Government proposes a licensing policy for bulk storage that favours existing operators. It refers the policy to the Commission under Section 49(1). The Commission gives its opinion within sixty days of the reference, noting that entry by new operators could be shut out. Under Section 49(2) the State Government is not bound to adopt the opinion; it may take further action as it thinks fit.
Need help with a policy submission?
If a proposed policy or regulation affects your sector, a clear note on its competition effects can help. Our legal consultation team can prepare a submission and read the Commission's published reasoning with you. For the structure of the Commission, see our article on the Commission's composition.
Key takeaways
- The Commission must give its opinion within sixty days of the reference, and the opinion does not bind the government.
- Section 49(3) now speaks of competition advocacy "or culture".
- Section 50 allows discretionary grants after Parliamentary appropriation.
- The Competition Fund gains clause (e): sums from other sources decided upon by the Government.
- The Fund is separate from the Consolidated Fund of India.
Read next
- Sections 52 and 53 of the Competition Act, 2002: accounts, audit, returns and annual report
- Sections 47 and 48C: crediting of penalties and revocation
- Sections 7 to 9: composition of the Commission
- Introduction to the Competition Act, 2002
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.