Director-general and His Powers
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Transcript of Director-general and His Powers
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M I L A D M
DIRECTOR-GENERAL
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definition
Under 2(c) of MRTP Act
Means director general of investigation andregistration appointed under sec.8 and includes any
Additional, Joint, Deputy or Assistant directorgeneral of investigation and registration appointedunder sec.8
Under 2(g) of Competition Act
Means the director general appointed under sub-section (1) of section 16 and includes Additional,Joint, Deputy or Assistant director general appointedunder that section
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APPOINTMENT OF D.G
Section 16 Of The Competition Act, 2002 Deals WithAppointment Of Director General
It is done by a notification by central government
Purpose is to assist the commission in inquiry Provision for appointment of additional, joint, deputy or
assistant director general and other staffs
Salary, allowances, terms and condition of service shall be
prescribed Appointed on the basis of integrity and outstanding ability
Later section 8 of MRTP deals with appointment
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SECTION 41 OF COMPETITION ACT
Provides certain duties on DG
Investigate into contravention
When directed he has to assist the commission ininvestigating into contraventions
He has all powers conferred upon the commission undersec 36(2)
Section 240 & 240A of the Companies Act, 1956 shall
apply to an investigation made by DG
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APPLICABILITY OF SECTION 240 & 240A
Is applicable to every investigation by DG as well as a
person authorized by him
The word central government in 240 is construed as the
commission Magistrate under 240A is construed as the chief
metropolitan magistrate delhi
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Production of documents and evidence
Sec 240 & 240A of Companies Act are incorporated in
competition Act with changes specified in explanations
under section 41(3)
DG has got some powers To require to furnish such information or produce such paper or
books for the purpose of investigation
To keep that in his custody for upto six months and if needed he can
call in again
To examine on oath with previous approval of commission and
administer oath accordingly and for that purpose he can require any
person to present
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Conti...
Co-operation is compelled from persons
If there is any default he shall be punishable and defaults
includes
To produce book and papers in his custody To furnish any information which he is duty bound to do
To appear personally when required to do so
To answer question which is put to him
To sign notes of any examination
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Notes on examination
Can examine person on oath
It is to be write down and signed and one copy is to be
furnished to person making statement
It can be used as an evidence. ie answer given on oath{karak rubber co. Vs Burden}
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Power to search and seizure
May make an application to CJM
Reasonable ground to believe that it may be destroyed,
altered, falsified...
After hearing DG magistrate may by order authorize DG To enter the place where books and paper are kept
To search that place in manner prescribed
To seize books and papers which he considers necessary for
investigation
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Conti....
He can keep that book in custody for such period as he
thinks necessary, but not later than conclusion of
investigation
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Application for seizure
Where in course of investigation
He has reasonable ground to believe that the books and
papers of enterprise may be destroyed, mutilated, altered,
falsified or secreted
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Director general submitting report
Procedure for investigation is laid down in sec 26
He have the power of civil court
Also has the power of inspector appointed by central govt.
DG shall make an investigation and submit report on hisfindings [section 26(3)]
Investigation by DG is only a fact-finding one and not of
any judicial or quasi judicial character
Report may contains finding as to contravention or non-
contravention
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If no contravention
Act according to (5), (6), (7) of section 26 of the Act
Ie under (5) may go for objection or suggestion
Under (6), after hearing feels no contravention, close the
matter Under (7), after hearing feels contravention ask for further
inquiry
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If contravention
As per (8) of section 26
If feels further inquiry, direct further inquiry into the
contraventions.
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THANKS FOR PATIENCE