Strengthening Competition Law In India: The Case For Criminal Sanctions Against Cartels
- IJLLR Journal
- Jun 7
- 2 min read
Praful Saran & Dr. Prem Kumar Gautam
ABSTRACT
Cartel conducts severely undermines market integrity and harms consumers badly while obstructing economic efficiency with grave competition law violations. Substantial pecuniary penalties are levied in India under the Competition Act 2002, mainly for anti-competitive agreements that involve cartel formation. Unlike some jurisdictions, such as the United States, India's framework refrains from imposing draconian penalties like imprisonment on cartel behaviour. Criminal sanctions introduction implications are evaluated in this paper alongside critiques of India's cartel governance landscape and ongoing criminalization debate fervor.
India's existing regime imposes hefty monetary penalties and provides leniency incentives to unearth clandestine cartels, but the absence of criminal liability may limit deterrence somewhat. Countries like the U. S. under the Sherman Act and U. K. under the Enterprise Act have seen enhanced deterrence despite various practical enforcement issues arising afterward. Criminal sanctions pose quite a stark and highly personal menace to corporate bigwigs, beefing up compliance incentives well beyond civil penalties. Research acknowledges significant obstacles to criminalizing cartel conduct in India, nonetheless. Critical concerns include a higher burden of proof needed in criminal proceedings beyond a reasonable doubt and the risk of over-deterrent legitimate competitive behaviour. Enforcement hurdles are scrutinized closely in Ireland, Japan, the U.K., and Canada, yielding multifaceted experiences that effectively enhance understanding of such obstacles.
The paper evaluates how criminalization necessitates sweeping reforms encompassing enhancement of enforcement agency capabilities, protection of leniency incentives, and refinement of procedural safeguards. Criminalization might boost India's global clout in competition enforcement, thereby significantly facilitating international cooperation overseas. India must adopt a somewhat balanced, phased approach and build capacity successfully to implement such a transformative policy shift globally. Strategic institutional strengthening and robust procedural protections will be crucial in realizing the benefits of criminalization while mitigating risks to India's evolving law regime quite effectively.
Keywords: Cartels, Competition Law, Criminal Sanctions, Deterrence, India, Leniency Program
