Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Competition law - query

(Querist) 13 May 2011 This query is : Resolved 
Dear All,

I have a query as follows:

There is an association of trade in India to which all the entities doing that trade are members. As per the notification of Government, the Association is authorised and is the centre point for registration of distributors for sale and marketing of the products. No one can distribute the products unless registered with the Association (as per government mandate). The Association charges registration fees and renewal fees (every three years) to distributors for such services.

The fees so charges varies from legal status of distributors.

e.g. Individual - 10000
Partnership - 20000
Senior citizen - 5000
pvt. ltd companies - 1,00,000
public limited companies - 10,00,000
etc.

whether charging such differential fees based on the legal status of distributors is in violation of sec 3 or 4 of Competitation Act ? Whether it limits or controls the competition ? more particularly in case of pvt. ltd and public limited companies, is it limiting competition ?

Please share your valued opinion.

Thanks in advance.

B K G












Manish Singh (Expert) 31 May 2011
As per section 3 or 4 of the Competition Act, this act of the association shall not amount to create adverse effect on competition.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :