Expanding Scope and Strengthening Enforcement: Significant Amendments in the CCI’s 2025 Recovery Regulations

Introduction

The Competition Commission of India (‘CCI’) has recently published the CCI (Manner of Recovery of Monetary Penalty) Regulations[i], 2025 (‘Amended Regulations’), thereby repealing the earlier CCI (Manner of Recovery of Monetary Penalty) Regulations[ii], 2011(‘Erstwhile Regulations’). Framed under s. 64(2)(g), read with ss. 36 and 39(1) of the Competition Act, 2002 (‘Act’), the Amended Regulations aim to establish a more robust, transparent, and structured framework for the imposition, recovery, and enforcement of monetary penalties levied by the CCI.

Key Amendments                      

The Amended Regulations introduce several notable changes, including the expansion of the definition of defaulters to cover legal heirs and the enhancement of recovery mechanisms through third-party liability. At the same time, several provisions from Erstwhile Regulations have been retained, ensuring continuity in key procedural aspects. Importantly, both the Erstwhile and the Amended Regulations empower the CCI to initiate asset attachment proceedings for the recovery of penalties, an authority which significantly strengthens the enforceability of CCI’s orders. The key amendments introduced under the Amended Regulations are as follows:

• Reg. 2. - Introduction of key definitions: Reg. 2(1) of the Amended Regulations introduces new definitions, such as that of legal heir[iii], person[iv] and person in default[v]. These additions clarify the scope of liability and extend the applicability of the recovery framework.

• Reg. 3 - Issuance of demand notice:  The Secretary of the CCI has now been expressly authorised to issue a demand notice (Form I) to any enterprise or a person penalised under the Act. While the Erstwhile Regulations allowed a thirty (30) day window for payment without requiring submission of proof to the recovery officer, the Amended Regulations extend this period to sixty (60) days from the date of receipt of the demand notice. Additionally, the penalised party must now submit proof of payment to the recovery officer within seven (7) days. Moreover, the proviso to reg. 2(2) of the Erstwhile Regulations, which empowered the CCI to issue a demand requiring payment within a period shorter than thirty (30) days, if it had reason to believe that allowing the full period would be detrimental, has been omitted in the Amended Regulations.

• Reg. 4 - Extension of time and grant of instalments: The Amended Regulations allow both enterprises and persons to apply for an extension of time to pay the penalty, provided the application is made before the due date. This marks an expansion from the previous framework, which permitted such relief only to enterprises.

• Reg. 5 - Interest on penalty: Under the Amended Regulations, if the penalty specified in the demand notice is not paid within the prescribed time, the enterprise or person in default is liable to pay simple interest at the rate of 1% on the outstanding amount. This marks a reduction from the earlier rate of 1.5% under the Erstwhile Regulations.

The CCI has also been vested with the discretionary authority to waive or reduce the interest payable in cases where the delay in payment is justifiably explained. Furthermore, if the National Company Law Appellate Tribunal (‘NCLAT’) or a High Court or the Supreme Court of India reduces the penalty amount through a judicial order, the interest amount shall be reduced proportionally. Any excess payment is to be refunded accordingly.

• Reg. 6 - Issuance of recovery certificate: The Amended Regulations broaden the scope of the recovery certificate, which was previously issued only against enterprises. It may now also be issued against any person in default. Moreover, if a person is found to be in violation under regs. 4(2) and 4(3) of the Amended Regulations, recovery proceedings can be initiated against them under the revised framework. This expansion ensures that both persons and enterprises are held equally accountable for the unpaid penalties.  

• Reg. 7 - Function of recovery officer: The recovery officer is responsible for ensuring compliance with demand notices, executing recovery actions, and collecting penalties. While this role was previously limited to enterprises, the Amended Regulations extend the officer’s authority to include persons and their legal heirs. Notably, the Amended Regulations introduce a third-party liability mechanism, under which any third-party holding funds on behalf of a defaulter is obligated to remit such amounts directly to the CCI. Failure to comply may result in the third party being deemed a defaulter under the Amended Regulations.

• Reg. 9 - Modes of recovery: The Amended Regulations expand the recovery framework to explicitly include a person in default. In cases where such a person is deceased, the penalty may be recovered from their legal heir, but only to the extent of the estate inherited. The recovery officer is empowered to direct third parties holding funds on behalf of a defaulter to remit the penalty amount directly to the CCI. Failure to comply renders the third-party liable as a defaulter. Asset recovery mechanisms have also been reinforced. The Amended Regulations now permit the simultaneous attachment and sale of both movable and immovable property, thereby expediting the enforcement process.  Additionally, the Amended Regulations have retained provisions for international recovery from the Erstwhile Regulations.

To prevent fraudulent transfers during recovery proceedings, any sale, mortgage, or gift of assets by the defaulter will be deemed void against penalty recovery claims, unless:

a) The transaction was made for adequate consideration, and the purchaser had no knowledge of the pending proceedings; or

b) The transaction has received prior approval from the CCI.

• Reg. 11 - Reference by the CCI to Income-tax Authority: The Amended Regulations retain the mechanism for recovering penalties through the Income-tax Act, 1961 (‘IT Act’), as provided in the earlier framework. Where CCI forms an opinion, based on reasons recorded in writing, that it is expedient to recover a penalty under the IT Act, it may refer the matter to the concerned IT Authority under s. 39(2) of the Act. Upon such a reference, the penalty is recovered as ‘tax due’ under the IT Act. Once the IT Authority initiates recovery proceedings, any recovery proceedings previously initiated by the CCI are sine die deferred. This approach avoids parallel proceedings and ensures a streamlined and coordinated enforcement mechanism.

• Reg. 12 – Intimation of recovery by the Income-tax Authority: The Amended Regulations introduce additional oversight and tracking requirements to enhance transparency in the recovery process. Under reg. 12(1), once the Secretary of CCI receives an intimation of recovery of penalty from the tax recovery officer (TRO), they must ensure that the recovery officer records the recovery in the penalty recovery register immediately, if not, the same shall not be delayed by any more than five (5) days from receipt of such intimation. Further, as per the reg. 12(2), the Secretary is required to review and obtain a progress report from the tax recovery officer at least once every three (3) months regarding the recovery of referred demands. This progress must be placed before CCI on a monthly basis. These provisions ensure real-time tracking, institutional accountability, and continuous monitoring of penalty recoveries.

• Reg. 14 - Refund of excess penalty: The Amended Regulations refine the refund mechanism to ensure procedural clarity and judicial oversight. While the Erstwhile Regulations provided for refunds where the Competition Appellate Tribunal, High Court or Supreme Court reduced or annulled a penalty imposed by CCI, the Amended Regulations update the Appellate forum to reflect current statutory changes. Accordingly, references to the erstwhile Competition Appellate Tribunal have been updated to reflect its replacement by the NCLAT.

• Reg. 17 - Repeal and Savings: The Amended Regulations formally repeal the Erstwhile Regulations, with effect from the date the new regulations come into force. However, this repeal does not affect actions taken under the previous framework.

Conclusion 

The Amended Regulations significantly streamline and fortify the penalty recovery framework under the Act. While the Erstwhile Regulations were subject to limited amendments in 2014[vi] and 2021[vii], the present overhaul in 2025 follows a more consultative and structured approach. Notably, the draft regulations[viii] were placed in the public domain in 2024 for stakeholder consultation. Based on the inputs received, the CCI has introduced the key reforms to enhance procedural rigour and enforcement efficacy. Among the most consequential changes is the alignment of the recovery process with the IT Act, coupled with the introduction of real-time reporting obligations for recovery officers. These changes aim to streamline coordination with the tax authorities, avoid duplicate proceedings, and ensure the timely collection of penalties.

Further, the revised framework provides greater procedural clarity through defined timelines, structured refund processes under the jurisdiction of NCLAT, and transparent tracking protocols. The inclusion of a ‘removal of difficulties’ provision under reg. 16 ensures regulatory certainty and addresses potential ambiguities in implementation.

Overall, the Amended Regulations represent a decisive step forward in aligning India’s competition enforcement regime with global standards, ensuring a robust, accountable, and transparent system for the recovery of monetary penalties.

End Notes

[i] NOTIFICATION NO. 01 OF 2025 [F. NO. CCI/REG.-R.R./2024-25], Dated 25.02.2025.

[ii] NOTIFICATION NO. 01 OF 2011 [F. NO. CCI/REG.-R.R./2024-25], Dated 08.02.2011.

[iii] Under reg. 2 (1)(g) of the Amended Regulations, the term “legal heir” refers to a legal representative as defined in s. 2(11) of the Code of Civil Procedure, 1908.

[iv] Under reg. 2 (1)(j) of the Amended Regulations, the term “person’ refers to a person defined under s. 2(1) of the Act, which includes an individual; (ii) a Hindu undivided family; (iii) a company; (iv) a firm; (v) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (vi) any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); (vii) any body corporate incorporated by or under the laws of a country outside India; (viii) a co-operative society registered under any law relating to co-operative societies; (ix) a local authority; (x) every artificial juridical person, not falling within any of the preceding sub-clauses.

[v] Under reg. 2 (1)(k) of the Amended Regulations, the term “person in default” means a person who has not paid the penalty imposed upon it within the stipulated time despite the demand notice duly served upon.

[vi]  NOTIFICATION NO.R-40007/REG-RECOVERY/NOTI/04-CCI, Dated 25-6-2014

[vii] NOTIFICATION NO. 1 OF 2021 [R-40007/REG-RECOVERY/NOTI/2021-CCI], Dated 16-2-2021

[viii] Competition Commission of India, Draft Amendments to the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011, Dated 07-11-2024, https://www.cci.gov.in/images/stakeholderstopicsconsultations/en/draft-amendments-to-the-competition-commission-of-india-manner-of-recovery-of-monetary-penalty1730881437.pdf.

Authored by Siddharth Jha, Advocate at Metalegal Advocates. The views expressed are personal and do not constitute legal opinions.