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CS Executive · Economic, Commercial and Intellectual Property Laws · Competition Law

Rohit, a law student, is asked about the territorial reach of the Competition Act, 2002 as it stands in the India Code text. Which statement correctly describes its extent under Section 1?

Under Section 1(2) as given in the India Code text, the Competition Act, 2002 extends to the whole of India except the State of Jammu and Kashmir. The text contains a specific exclusion and does not restrict the Act to States or extend it abroad.

  1. AIt extends to the whole of India except the State of Jammu and KashmirCorrect
  2. BIt extends to the whole of India without any exception
  3. CIt extends only to the States and not to Union Territories
  4. DIt extends to India and to all foreign companies operating abroad

Explanation

Section 1(2) of the text provided states that the Act extends to the whole of India except the State of Jammu and Kashmir. The option saying no exception is wrong because the text expressly carves out that State. The other options add limits or reach that the text does not mention.

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