Chakravarthy, Srinivasan --- "Metamorphosis of Indian Competition Law" [2010] ELECD 237; in Zäch, Roger; Heinemann, Andreas; Kellerhals, Andreas (eds), "The Development of Competition Law" (Edward Elgar Publishing, 2010)

Book Title: The Development of Competition Law

Editor(s): Zäch, Roger; Heinemann, Andreas; Kellerhals, Andreas

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848444461

Section: Chapter 5

Section Title: Metamorphosis of Indian Competition Law

Author(s): Chakravarthy, Srinivasan

Number of pages: 33

Extract:

5. Metamorphosis of Indian
Competition Law
Srinivasan Chakravarthy*

1 INTRODUCTION

This chapter addresses the evolution of competition policy and law in
India, tracing the economic scenario in India before and after the 1991
reforms; a description of the extant competition law (Monopolies and
Restrictive Trade Practices Act 1969, briefly referred to as the MRTP Act)
in the country; and a description of the metamorphosis of the MRTP Act
into a new law (Competition Act 2002, as amended in 2007, hereinafter
referred to as the Act) and its features.
Since attaining independence in 1947, India, for the better part of half
a century thereafter, adopted and followed policies comprising what are
known as `command and control' laws, rules, regulations and executive
orders. The competition law of India, namely, the MRTP Act was one such
policy. In 1991 widespread economic reforms were undertaken and conse-
quently the march from `command and control' economy to an economy
based more on free market principles commenced its stride. As is true of
many countries, economic liberalisation has taken root in India and the
need for an effective competition regime has also been recognised.


2 HISTORICAL DEVELOPMENTS LEADING TO
THE ENACTMENT OF THE MRTP ACT

2.1 Constitutional Provisions

The Constitution of India, in its essay in building up a just society has
mandated the State to direct its policy towards securing that end. Articles
38 and 39 of the Constitution of India, which are part of the Directive

* Dr. S. Chakravarthy is a civil servant ...