CCI notifies CCI (Manner of Recovery of Monetary Penalty) Regulations, 2025 repealing 2011 regulations

On 25-2-2025, the Competition Commission of India notified the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2025 repealing the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011. The provisions came into force on 27-2-2025.

Key Points:

1. Issuance of demand notice:

   • In case, a penalty has been imposed upon an enterprise/ person, the Secretary will have to issue a demand notice along with the order passed by the Competition Commission of India (‘CCI’) imposing penalty to the recovery officer, at its last address known to CCI;

   • The demand will provide a time period which cannot be less than 60 days from the date of receipt of order passed by CCI;

   • The enterprise/ person will have to pay the penalty thorough challan in favour of Pay & Accounts Officer (PAO), Ministry of Corporate Affairs, Head No. 1475.00.105.05, [Sub-Head — 00] — ‘Penalties imposed by Competition Commission of India’;

   • Copy of challan has to be submitted to the recovery officer immediately within 7 days of the payment and the recovery officer will have to make an entry of the same in the recovery register;

   • Any clerical/ arithmetical mistake in the demand notice can be rectified by CCI at any time.

2. Extension of time and grant of instalments:

   • Enterprise/ person can make an application before the expiry due date of the payment to CCI for granting extension for payment or allow payment in instalments;

   • In case extension has been granted and enterprise/ person fails to make the payment within the extended period, it will be in default;

   • In case payment in installments has been allowed and there is a default in in paying one of the instalments within the time period then the enterprise/ person will be deemed to be in default.

     It means if one installment of a penalty is missed, all remaining installments are considered due immediately, as if they were all due on the date of the missed installment.

3. Interest on penalty:

   • Simple interest at 1% on outstanding amount;

   • CCI can reduce or waive the amount of interest payable;

   • In case, an order is made by National Company Law Appellate Tribunal (‘NCLT’)/ Supreme Court of India (‘SC’) / High Court (‘HC’) then where it reduces the penalty, the interest on that penalty will also be reduced. Additionally, any excess interest that has already been paid will be refunded.

4. Issuance of recovery certificate:

   • In case enterprise/ person is in default, the CCI will issue a recovery certificate mentioning the amount of penalty and interest giving 15 days deposit time;

   • CCI can rectify any clerical/ arithmetical mistake in the recovery certificate, and it can also extend the time for making any payment in pursuance of such recovery certificate.

5. Maintenance of Penalty Recovery Register has to be maintained by the recovery officer set out in Form IV.

6. These regulations provide different modes of recovery in case default enterprise/ person fails to pay penalty on stipulated time, the recovery officer can proceed to recover the penalty.

7. Reference by the Commission to the Income-tax authority:

   If the CCI is of the opinion that it will be expedient to recover the penalty in accordance with the provisions of Income-tax Act, 1961, it can refer to the Income-tax authority for recovery of penalty as “tax due”.

8. Refund of excess penalty: If the NCLT/ SC/ HC decides that any enterprise/ person is not liable to pay any penalty or penalty amount is less than what was originally stated by CCI then the demand notice/ recovery certificate should be withdrawn, if no penalty is due or it will be modified it the penalty amount is reduced.

   In case any excess penalty has been paid will be refunded.