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M I L A D M

DIRECTOR-GENERAL

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definition

Under 2(c) of MRTP Act

Means director general of investigation andregistration appointed under sec.8 and includes any

Additional, Joint, Deputy or Assistant directorgeneral of investigation and registration appointedunder sec.8

Under 2(g) of Competition Act

Means the director general appointed under sub-section (1) of section 16 and includes Additional,Joint, Deputy or Assistant director general appointedunder that section

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APPOINTMENT OF D.G

Section 16 Of The Competition Act, 2002 Deals WithAppointment Of Director General

It is done by a notification by central government

Purpose is to assist the commission in inquiry Provision for appointment of additional, joint, deputy or

assistant director general and other staffs

Salary, allowances, terms and condition of service shall be

prescribed Appointed on the basis of integrity and outstanding ability

Later section 8 of MRTP deals with appointment

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SECTION 41 OF COMPETITION ACT

Provides certain duties on DG

Investigate into contravention

When directed he has to assist the commission ininvestigating into contraventions

He has all powers conferred upon the commission undersec 36(2)

Section 240 & 240A of the Companies Act, 1956 shall

apply to an investigation made by DG

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APPLICABILITY OF SECTION 240 & 240A

Is applicable to every investigation by DG as well as a

person authorized by him

The word central government in 240 is construed as the

commission Magistrate under 240A is construed as the chief

metropolitan magistrate delhi

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Production of documents and evidence

Sec 240 & 240A of Companies Act are incorporated in

competition Act with changes specified in explanations

under section 41(3)

DG has got some powers To require to furnish such information or produce such paper or

books for the purpose of investigation

To keep that in his custody for upto six months and if needed he can

call in again

To examine on oath with previous approval of commission and

administer oath accordingly and for that purpose he can require any

person to present

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Conti...

Co-operation is compelled from persons

If there is any default he shall be punishable and defaults

includes

To produce book and papers in his custody To furnish any information which he is duty bound to do

To appear personally when required to do so

To answer question which is put to him

To sign notes of any examination

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Notes on examination

Can examine person on oath

It is to be write down and signed and one copy is to be

furnished to person making statement

It can be used as an evidence. ie answer given on oath{karak rubber co. Vs Burden}

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Power to search and seizure

May make an application to CJM

Reasonable ground to believe that it may be destroyed,

altered, falsified...

After hearing DG magistrate may by order authorize DG To enter the place where books and paper are kept

To search that place in manner prescribed

To seize books and papers which he considers necessary for

investigation

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Conti....

He can keep that book in custody for such period as he

thinks necessary, but not later than conclusion of

investigation

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Application for seizure

Where in course of investigation

He has reasonable ground to believe that the books and

papers of enterprise may be destroyed, mutilated, altered,

falsified or secreted

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Director general submitting report

Procedure for investigation is laid down in sec 26

He have the power of civil court

Also has the power of inspector appointed by central govt.

DG shall make an investigation and submit report on hisfindings [section 26(3)]

Investigation by DG is only a fact-finding one and not of

any judicial or quasi judicial character

Report may contains finding as to contravention or non-

contravention

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If no contravention

Act according to (5), (6), (7) of section 26 of the Act

Ie under (5) may go for objection or suggestion

Under (6), after hearing feels no contravention, close the

matter Under (7), after hearing feels contravention ask for further

inquiry

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If contravention

As per (8) of section 26

If feels further inquiry, direct further inquiry into the

contraventions.

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THANKS FOR PATIENCE