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Source: The post is based on the article “CCI work may suffer with top level vacancy” published in Livemint on 1st November 2022.
What is the News?
The reduced strength at the top of the Competition Commission of India(CCI) may impact the adjudication process in the short term.
What is the Competition Commission of India(CCI)?
What is the issue faced by CCI currently?
According to the Competition Act, the CCI shall consist of a Chairperson and not less than two and not more than six other Members to be appointed by the Central Government.
Moreover, according to existing rules, in addition to the chairperson, the CCI needs two members to have a sufficient quorum to take key decisions.
However, currently, CCI has only two whole-time members which include an acting chairperson.
Due to this, the minimum number of members required for adjudication and approving mergers and acquisitions(M&As) has been reduced.
Hence, with these vacancies, CCI’s decisions could take longer considering that the search for a new chairperson is still on.
Note: M&A approvals by CCI are key for foreign direct investment inflows and unless urgent appointments are made, such approvals may remain on hold.