Skip to content

CMA Final · Corporate and Economic Laws · The Competition Act, 2002

Under section 49 of the Competition Act, 2002, the State Government of a state refers a draft policy to the Commission for its opinion on the policy's possible effect on competition. Which statement is correct?

The Commission must give its opinion within sixty days of the reference, and that opinion does not bind the State Government. Section 49 allows both Central and State Governments to seek the opinion, and the Government may take further action as it deems fit.

  1. AThe Commission must give its opinion within sixty days of the reference, and the opinion is not binding on the State GovernmentCorrect
  2. BThe Commission must give its opinion within thirty days, and the opinion binds the State Government
  3. CThe Commission may give its opinion at any time, and the opinion is not binding
  4. DOnly the Central Government may make such a reference, so the Commission need not respond

Explanation

Section 49(1) allows both the Central and State Governments to make a reference, and the Commission must give its opinion within sixty days. Section 49(2) says the opinion is not binding on the Government in formulating the policy. The binding-opinion option contradicts this.

Did you get it right without looking?

One question tells you little. A timed set on The Competition Act, 2002 shows your real accuracy, how long you take and where you lose marks.

Practise The Competition Act, 2002Free diagnostic mock

More The Competition Act, 2002 questions