At present, issues concerning “cartelisation” are handled by the MRTP Commission. The MRTP Act is clearly misplaced in a growing economy like India and is anti-reform. Though the Competition Act has been enforced in 2002, to replace the draconian MRTP Act, it is non-functional to a large extent.
In a free market economy like ours, stemming the price rise through Governmental fiat is not the way forward. Having said that, to prove the existence of cartelisation and misconduct at marketplace, any government would need evidence, especially in the case of commodities, where demand exceeds supply.
It is, therefore, of utmost importance to fully empower the Competition Commission set up by the Competition Act 2002 to conduct an economic analysis of pricing patterns, market structure, business practices and consumer behaviour in the industries/sectors alleged to be involved in the practice of cartelisation
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