Institutional Guidelines Adopted by CCI

Institutional Guidelines Adopted by CCI

As mandated under the Competition Act, 2002, the Competition Commission of India may impose penalties, and/or issue cease & desist order in appropriate cases. However, while imposing penalties under section 27 of the Act, the Commission takes into account the aggravating and mitigating factors before arriving at the fair and judicious quantum of such penalties.

Penalties are imposed in order to eliminate practices having adverse effect on competition, as well as for promoting and sustaining competition, primarily to protect the interests of consumers.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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Companies Registered Under Companies Act

The Number of Companies registered under the Companies Act during the year 2014-15 is 64,395. The number of Companies listed in stock exchange during the year 2014-15 is 66.

The total authorised capital of public and private limited companies registered during the year 2014-15 is Rs.8,826.80 crore and 22,953.93 crore respectively.

The details regarding area of operations of the companies registered during the year 2014-15, State/UT-wise is at Annexure.

Annexure
Details of area of operations of the registered companies


State/UT	Agriculture	Industry	of which Manufacturing	Services	Total
Andaman and Nicobar Islands	3	1	-	25	29
Andhra Pradesh	136	750	326	1,300	2,186
Arunachal Pradesh	-	5	1	2	7
Assam	17	66	36	116	199
Bihar	58	647	243	914	1,619
Chandigarh	2	112	77	298	412
Chhattisgarh	20	114	70	194	328
Dadar Nagar Haveli	-	8	7	6	14
Daman and Diu	1	1	-	5	7
Delhi	116	1,933	1,244	9,027	11,076
Goa	2	30	13	126	158
Gujarat	97	1,268	968	1,785	3,150
Haryana	42	480	323	2,034	2,556
Himachal Pradesh	5	66	29	140	211
Jammu and Kashmir	4	55	28	129	188
Jharkhand	16	366	65	286	668
Karnataka	97	1,040	613	3,888	5,025
Kerala	57	361	173	1,229	1,647
Madhya Pradesh	107	448	262	787	1,342
Maharashtra	459	2,400	1,464	8,161	11,020
Manipur	3	13	7	27	43
Meghalaya	2	7	3	10	19
Mizoram	-	1	1	4	5
Nagaland	2	3	-	5	10
Orissa	42	299	117	495	836
Pondicherry	-	23	20	51	74
Punjab	39	180	137	532	751
Rajasthan	55	563	299	1,073	1,691
Tamil Nadu	152	1,158	682	3,557	4,867
Telangana	108	1,016	507	2,637	3,761
Tripura	1	3	2	14	18
Uttar Pradesh	204	1,418	711	4,367	5,989
Uttarakhand	14	72	41	248	334
West Bengal	139	690	329	3,326	4,155
Grand Total	2,000	15,597	8,798	46,798	64,395

Source-MCA-21

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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Activities by Companies Under CSR

The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules made thereunder have been notified on 27.02.2014. These notifications are available on the Ministry’s website (www.mca.gov.in). The salient features of CSR provision inter-alia, are as follows:

· companies above the specified threshold of turnover or net worth or net profit are required to spend at least two per cent of their average net profits earned during three immediately preceding financial years on CSR activities;
· each such company is required to constitute a CSR committee of the Board;
· the Board of each such company is required to have the company’s CSR policy formulated and monitor its implementation;
· the Board's report shall include an annual report on CSR containing particulars specified in prescribed format;
· the Board’s report shall specify the reasons for not spending the specified amount, if the company fails to spend such amount;
· companies may implement their CSR Policy through trusts or societies or Section 8 companies etc.;
· indicative activities which can be undertaken by a company under CSR have been specified in Schedule VII of the Act;

CSR expenditure of 460 listed companies, which have placed their annual reports on their website, indicates that 51 Public Sector Undertakings (PSUs) and 409 private sector companies together spent about Rs. 6337 crores on CSR during 2014-15 as summarized below:

Sl. No.	Company Type	No. of companies	Actual CSR expenditure (in Rs. Crore) (2014-15)
1.	PSUs	51	2386.60
2.	Private Sector Companies	409	3950.76
Total		460	6337.36

Of these 460 companies, company-wise CSR expenditure of top 20 companies may be seen at Annexure – I. State /UT-wise number of CSR projects undertaken is at Annexure –II. Information on CSR expenditure on various developmental work by companies is at Annexure- III.

(As per Section 135 (3) & (4) of the Companies Act, 2013 Board of the company is empowered to select programmes / projects / activities to be undertaken and monitor the same. Ministry of Corporate Affairs has no role to play in this regard.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

Annexure – I

TOP 20 COMPANIES BY ACTUAL CSR SPEND DURING FY 2014-15 (In Rs. Crore)

Sl. No.	NAME OF THE COMPANY	Actual CSR Expenditure
1	RELIANCE INDUSTRIES LIMITED	760.58
2	OIL AND NATURAL GAS CORPORATION LIMITED	495.23
3	INFOSYS LIMITED	239.54
4	TATA CONSULTANCY SERVICES LIMITED	219.00
5	ITC LIMITED	214.06
6	NTPC LIMITED	205.18
7	NMDC LIMITED	188.65
8	TATA STEEL LIMITED	171.46
9	OIL INDIA LIMITED	133.31
10	WIPRO LIMITED	132.70
11	INDIAN OIL CORPN. LIMITED	113.79
12	BHARAT HEAVY ELECTRICALS LIMITED	102.06
13	MAHINDRA AND MAHINDRA LIMITED	83.24
14	HINDUSTAN UNILEVER LIMITED	82.35
15	LARSEN AND TOUBRO LIMITED	76.54
16	GAIL (INDIA) LIMITED	71.69
17	CAIRN INDIA LIMITED	70.36
18	NORTHERN COALFIELDS LIMITED	61.77
19	MAHANADI COALFIELDS LIMITED	61.30
20	HINDUSTAN ZINC LIMITED	59.28
	GRAND TOTAL	3542.09

Annexure – II

State/UT-wise CSR Projects undertaken during FY 2014-15

Sl. No.	States	No. of Projects	Sl. No.	States	No. of Projects
1	Maharashtra	202	19	Jharkhand	41
2	Gujarat	111	20	Bihar	38
3	Tamil Nadu	97	21	Kerela	37
4	Karnataka	95	22	Himachal Pradesh	34
5	Rajasthan	89	23	Goa	23
6	Uttar Pradesh	80	24	Manipur	23
7	Andhra Pradesh	79	25	Arunachal Pradesh	22
8	West Bengal	79	26	Chandigarh	21
9	Madhya Pradesh	71	27	Meghalaya	20
10	Delhi	66	28	Sikkim	20
11	Haryana	66	29	Tripura	20
12	Orissa	54	30	Nagaland	19
13	Jammu & Kashmir	52	31	Pondicherry	19
14	Chattisgarh	48	32	Andaman & Nicobar Islands	18
15	Telangana	47	33	Dadar & Nagar Haveli	18
16	Uttarakhand	47	34	Daman & Diu	17
17	Punjab	43	35	Lakshadweep	17
18	Assam	42	36	Mizoram	15
				Total	1790

Annexure - III

ANNEXURE REFERED TO IN THE REPLY TO LOK SABHA UNSTARRED QUESTION NO. 656

Development Sector wise CSR expenditure (FY 2014-15)

Sl. No	Subjects in Schedule VII	CSR Expenditure (in Rs. Crore)
1	Eradicating Hunger, Poverty & Health Care	1421.66
2	Education/ Vocational skills / livelihood enhancement	1462.6
3	Women / Old Age / Children	219.27
4	Environment sustainability	1188.69
5	Art & Culture	539.83
6	Sports promotion	454.91
7	PMNRF etc.	125.32
8	Rural Development	724.32
9	Slum Development	114.14
10	Swatch Bharat Kosh	42.64
11	Clean Ganga Fund	15.49
12	Others	28.5
	Grand Total	6337.36

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Corporate Frauds

From 2012-13 up to 31-01-2016 the Ministry has ordered investigations through Serious Fraud Investigation Office (SFIO) of this Ministry into the affairs of 258 companies allegedly indulging in fraudulent/ illegal activities. Of these, 116 investigations have been completed and reports submitted to the Ministry, while in 08 cases, investigations have been stayed by the Courts. Further, out of the completed investigations, Ministry has ordered filing of prosecutions in 102 cases, against companies/ directors/ officers in default on account of various non-compliances/ offences committed under the Companies Act, 1956 and other Statutes, as recommended in the investigation reports.

Steps taken by the Ministry include:

• the term “Fraud” has been defined in the Companies Act, 2013;

• Stricter norms of Corporate Governance and their implementation in the Companies Act, 2013;

• Statutory status to the Serious Fraud Investigation Office (SFIO);

• Increasing application of technology for early detection of frauds through data mining and Forensic Audit, etc.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

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Assessment and Functioning of CCI

Competition Commission of India (CCI) is a Statutory Body established under the Competition Act, 2002 to prevent practices having adverse effect on competition, to promote and sustain competition in markets while protecting the interests of the consumers. The Commission prepares and forwards to the Central Government an annual report giving a full account of its activities during the previous year, which is laid before each Houses of Parliament. The number of cases of cartelisation/unethical business practices reported to CCI in the last three years and current year under provisions of the Competition Act, 2002 are given below: -

Year	Number of Cases reported to CCI
2012-13	94
2013-14	115
2014-15	128
2015-16 (Up to 23.02.2016)	113

(Source : CCI)

The details of cases reported, action taken/penalty imposed by CCI on such companies during each of the last three years and the current year, company-wise/sector-wise are indicated in the Annexure – I to Annexure - IV.

Under the provisions of the Competition Act, 2002 the CCI is mandated, inter-alia, to impose penalties and/or issue cease and desist orders in cases of unethical practices such as anti-competitive agreements and abuse of dominance.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

Annexure - I

Financial Year 2012-13

Sl. No.	Name of Case	Sector	Penalty Imposed (In Rs.)
1	Kannada Grahakara Koota & Shri Ganesh Chetan	FILM & ENTERTAINMENT	20,24,621
2	KCEA	FILM & ENTERTAINMENT	40,29,277
3	Anil Kumar	REAL ESTATE	No Penalty Imposed
4	Atos Worldline India Pvt. Ltd.	FILM & ENTERTAINMENT	4,48,40,236
5	Three D Integrated Solutions Limited	REAL ESTATE	No Penalty Imposed
6	IFTRT	FILM & ENTERTAINMENT	14,24,521
7	Rohit Medical Store	HEALTH & PHARMACEUTICAL	2,93,699
8	M/s Silarpuri Colonizers Private Limited	REAL ESTATE	Not Applicable
9	Advertising Agencies Guild	INFORMATION TECHNOLOGY	Not Applicable
10	Dr. Deepa Narula	REAL ESTATE	Not Applicable
11	Shri M. Rajendran. Kovai Cable Vision	INFORMATION TECHNOLOGY	Under Conisderation
12	Tamarai Technologies Private Limited	MISCELLENEOUS	Under Conisderation
13	Shri Ashok Vijhay Jain	REAL ESTATE	Not Applicable
14	Lt. Col. (Retd.) Dr. Mohinder Kumar Yadav	REAL ESTATE	Not Applicable
15	Smt. Raj Rani Chandhok & Shree Poneet Chandhok	REAL ESTATE	Not Applicable
16	Shri Shivang Agarwal	REAL ESTATE	Not Applicable
17	DGCOM	REAL ESTATE	Not Applicable
18	CUTS	INFORMATION TECHNOLOGY	Under Conisderation
19	Sanjay Kumar Gupta	REAL ESTATE	Not Applicable
20	Sh. Subhash Yadav	AUTOMOBILES	Not Applicable
21	Ms. Nalini Gupta	MISCELLENEOUS	Not Applicable
22	Mr. Tarsem Chand & Mrs Kanta Devti Mittal	REAL ESTATE	Not Applicable
23	IAAI	CIVIL AVIATION	Not Applicable
24	BIG CBS & RTPL	FILM & ENTERTAINMENT	Not Applicable
25	Sreeram Mushty	BANKING & INSURANCE	Not Applicable
26	All India Genset Manufacturer Association	MISCELLENEOUS	Not Applicable
27	M/s Swastik Stevedores Pvt. Ltd.	MISCELLENEOUS	3,86,492
28	Mr. Khiani Hiro Rattanlal	MISCELLENEOUS	Not Applicable
29	Mr. Manoj Hirasingh Pradeshi	HEALTH & PHARMACEUTICAL	Not Applicable
30	CINEMAX INDIA LTD.	FILM & ENTERTAINMENT	55,20,315
31	Mr. A.K. Jain	REAL ESTATE	Not Applicable
32	Dr. Naveen Karnwal	MISCELLENEOUS	Not Applicable
33	Mineral Enter Ltd.	SHIPPING & TRANSPORT	Not Applicable
34	PDA Trade Fairs	MISCELLENEOUS	Not Applicable
35	N.S. Rao & Fatima Taher	BANKING & INSURANCE	Not Applicable
36	Sh. Kushal K. Rana	REAL ESTATE	Not Applicable
37	ACCAB	MISCELLENEOUS	Not Applicable
38	Exclusive Motors Pvt. Ltd.	AUTOMOBILES	Not Applicable
39	S. Bhargava	REAL ESTATE	Not Applicable
40	Merino Products Ltd.	CHEMICAL & FERTILIZER	Not Applicable
41	ACPMA and its members	CEMENT	Not Applicable
42	Dr. Anoop Bhagat	HEALTH & PHARMACEUTICAL	Not Applicable
43	Faridabad Industries Association		25,67,27,640
44	Madhya Pradesh Power Generating Comapnay Ltd	COAL	No Penalty Imposed
45	Madhya Pradesh Power Generating Comapnay Ltd	COAL	No Penalty Imposed
46	M/s Next Tenders (India) Private Limited	MISCELLENEOUS	Not Applicable
47	M/s Vijay Rice & General Mills	MISCELLENEOUS	Not Applicable
48	Ms. Lalita Ramakrishnan and Mr. V Ramakrishnan	REAL ESTATE	Not Applicable
49	Mr. Ajay Devgan Films	FILM & ENTERTAINMENT	Not Applicable
50	UPSE Securities Ltd.	BANKING & INSURANCE	Not Applicable
51	Mr. Manjit Singh Sachdeva	CIVIL AVIATION	Not Applicable
52	Indian Exhibition Industry Association	MISCELLENEOUS	6,75,03,540
53	Sponge Iron Manufacturers Association	IRON & STEEL	Not Applicable
54	Prasar Bharti	FILM & ENTERTAINMENT	Under Conisderation
55	Bengal Chemist and Druggist Association	HEALTH & PHARMACEUTICAL	18,38,56,470
56	M/s Shahi Exports Pvt. Ltd.	TEXTILE	Not Applicable
57	Mr. Karan Sehgal. Proprietor, M/s Karan Ores & Specials	MISCELLENEOUS	Not Applicable
58	Dr. Chintamoni Ghosh, Director	HEALTH & PHARMACEUTICAL	Penalty imposed but case was clubbed along with SM2 of 2012 so penalty in that case was applicable.
59	Mr. Saifudheen-E	CEMENT	Under Conisderation
60	Mr. Nirmal Kumar Manshani	MISCELLENEOUS	Under Conisderation
61	Mr. Jitendra P. Agarwal	REAL ESTATE	Not Applicable
62	Mr. Ramakant Kini	MISCELLENEOUS	3,81,58,303
63	The Air Cargo Agents Association of India	MISCELLENEOUS	Not Applicable
64	HLS Asia Limited	MISCELLENEOUS	Not Applicable
65	Official Beverages	MISCELLENEOUS	Not Applicable
66	Raaj Kamal Films Internation	FILM & ENTERTAINMENT	Under Conisderation
67	Mr. Kuldeep Singh	REAL ESTATE	Not Applicable
68	Mr. Ajit Mishra	REAL ESTATE	Not Applicable
69	M/s Oracale Drugs & other	HEALTH & PHARMACEUTICAL	Not Applicable
70	M/s Arora Medical Hall	HEALTH & PHARMACEUTICAL	2,05,42,953
71	Dr. Adla Satya Narayan Rao.	REAL ESTATE	Under Conisderation
72	Indian Railways Patiala	RAILWAYS	No Penalty Imposed
73	Mr. Krishnan	PETROLEUM & GAS	Not Applicable
74	Sale of Sugar Mills by UPRCGVNL & UPSSCL	MISCELLENEOUS	Under Conisderation
75	M/s Transparent Energy Systems Pvt. Ltd. (TESPL)	MISCELLENEOUS	Not Applicable
76	Shri Shantaram Walvalkar	BANKING & INSURANCE	Not Applicable
77	Shri Anil Gambhir	MISCELLENEOUS	Not Applicable
78	Puri VIP Floor Owners Association	REAL ESTATE	Not Applicable
79	Shri Tkushar Kanti Dhingra	REAL ESTATE	Not Applicable
80	Associaton of Indian Mini Blast Furnaces (AIM)	IRON & STEEL	Not Applicable
81	AdCept Technologies Pvt. Ltd.	COAL	Not Applicable
82	a'XYKno Capital Services Ltd.	COAL	Not Applicable
83	Shri Vineet Kumar	CIVIL AVIATION	Not Applicable
84	Quadrant EPP Surlon India Ltd.	MISCELLENEOUS	Not Applicable
85	Saint Gobain Glass India Ltd.	PETROLEUM & GAS	Not Applicable
86	India Glycols Limited	CHEMICAL & FERTILIZER	Under Conisderation
87	Mr. Kanwal Jit Singh, Proprietor, M/s Kanwal Automobiles	AUTOMOBILES	Not Applicable
88	M/s Dipak Nath	PETROLEUM & GAS	Not Applicable
89	Mr. Sumit Sahni and Mrs. Anumita Sahni	FILM & ENTERTAINMENT	Not Applicable
90	Essel Shyam Communication Ltd	MISCELLENEOUS	Under Conisderation
91	Petroleum Companies Fixing of Petrol Prices	PETROLEUM & GAS	Under Conisderation
92	Gujarat State Electricity Corporation Limited	COAL	17,73,05,00,000
93	Mr. A.V. Murlidharan, Director	MISCELLENEOUS	6,53,18,000
94	Mr. Dinesh Trehan	REAL ESTATE	No Penalty Imposed