Concentration of economic power and monopolies in India

With the d growth of tie economic activities all over the world, the problems of concentration of economic power and monopolies have mailed. The governments have confronted with the problems how to allow their citizens a maximum amount of freedom in private economic activities and at the same time to proted society from what experience has shown are the evil effects of such activities. In many countries of the world suitable legisl tive measures have been adopted to resolve the problem. Since independence, India has also enacted several legislations to achieve the socio-economic objectives. The Monopolies and Restrictive Trade Practices Act, 1969 is one of them which has given a new dimension to the modern economic legislations in India. The Act seeks to secure economic growth with social justice

The working of the Act was reviewed by the High Powered Expert Committee (under the Chairmanship of Mr. Justice Rajinder Sachar of Delhi High Court) in 1977-78. The Committee suggested a number of improvements for the better working of this important legislation. In the light of the recommendations of the Committee. some more important amendments were introduced by the adoption of the MRTP (Amendment) Act, 1982. The important features of the amendments have been to bring the changes in the definition of dominant undertaking, substantial expansion and establishment of new undertaking. Further, a comprehensive MRTP (Amendment) Act, 1984 was passed, which incorporated several changes to streamline the existing provisions relating to concentration of economic power. The provisions relating to restrictions on acquisi tion and transfer of shares which were earlier contained in sections 108A to 108H of the Companies Act, 1956 have been shifted to the MRTP Act. The limit of rupees twenty crores for the applicability of the provisions relating to concentration of economic power has been raised to rupees one hundred crores by the MRTP (Amend ment) Act, 1985.