Sections 43 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 43, 44 and 45 of the Competition Act, 2002 are the Act's penalty provisions for conduct around the Commission's process. Section 43 covers failure to comply with a direction of the Commission or the Director General. Section 44 covers a false statement or omission by a party to a combination. Section 45 covers false information, suppressed material and destroyed documents in any filing under the Act.
Section 43 carries a penalty of up to rupees one lakh for each day, subject to a maximum of rupees one crore. Section 44, as amended, sets a penalty of not less than rupees fifty lakhs but up to rupees five crore (it was rupees one crore). Section 45 carries a penalty of up to rupees one crore. In all three the 2023 Act changes the language from "punishable with fine" to "liable to a penalty".
How this article reads the Act
This article follows the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked. No commencement date is given here. A notice already received can be reviewed through our legal dispute resolution service. Section 43A, the penalty for not notifying a combination, has its own article: Section 43A.
Section 43: failure to comply with a direction
The heading is "Penalty for failure to comply with directions of Commission and Director General". As printed in the consolidated text, the section says that if any person fails to comply, without reasonable cause, with a direction given by (a) the Commission under sub-sections (2) and (4) of Section 36, or (b) the Director General while exercising powers referred to in sub-section (2) of Section 41, such person shall be punishable with fine which may extend to rupees one lakh for each day during which such failure continues, subject to a maximum of rupees one crore, as may be determined by the Commission. The printing puts "[43." on a line of its own, with the footnote mark below it; that is a layout slip, not a change in meaning.
Clause 29 of the Competition (Amendment) Act, 2023 substitutes for the words "shall be punishable with fine" the words "shall be liable to a penalty". The words appear once in the section, so the clause fits the base text. After the amendment: "such person shall be liable to a penalty which may extend to rupees one lakh for each day during which such failure continues subject to a maximum of rupees one crore, as may be determined by the Commission."
The directions come from two places. Section 36 is the Commission's procedural power, discussed in our article on Sections 35 and 36. Section 41(2) is the Director General's power in an investigation, covered in Section 41.
Section 44: false statement or omission by a party to a combination
As printed, Section 44 says that if any person, being a party to a combination, (a) makes a statement which is false in any material particular, or knowing it to be false; or (b) omits to state any material particular knowing it to be material, such person shall be liable to a penalty which shall not be less than rupees fifty lakhs but which may extend to rupees one crore, as may be determined by the Commission.
Clause 31 of the Competition (Amendment) Act, 2023 substitutes for the words "rupees one crore" the words "rupees five crore". The words occur once, in the upper limit, and the fit is exact. After the amendment the range is not less than rupees fifty lakhs but up to rupees five crore. The floor is unchanged. Notice that Section 44 already read "liable to a penalty" in the printed text, so only the ceiling moves.
Section 45: false information, suppression and destruction of documents
The marginal heading is "Penalty for offences in relation to furnishing of information". Sub-section (1) as printed says that, without prejudice to the provisions of Section 44, if a person who furnishes or is required to furnish under the Act any particulars, documents or any information (a) makes any statement or furnishes any document which he knows or has reason to believe to be false in any material particular; or (b) omits to state any material fact knowing it to be material; or (c) wilfully alters, suppresses or destroys any document which is required to be furnished as aforesaid, such person shall be punishable with fine which may extend to rupees one crore as may be determined by the Commission. Sub-section (2) says that, without prejudice to sub-section (1), the Commission may also pass such other order as it deems fit.
Clause 32 of the Competition (Amendment) Act, 2023 makes three changes: (a) in the marginal heading "offences" becomes "contraventions"; (b)(i) in sub-section (1), after the words "Without prejudice to the provisions of", the words, brackets and figures "sub-section (6) of section 6 and" are inserted; and (b)(ii) "punishable with fine" becomes "liable to a penalty". After the amendment, sub-section (1) opens: "Without prejudice to the provisions of sub-section (6) of section 6 and section 44, if a person ..." and ends "such person shall be liable to a penalty which may extend to rupees one crore as may be determined by the Commission." Sub-section (2) is untouched. The reference to sub-section (6) of Section 6 is to the order declaring a notice void; see our article on Section 6(4) to (9).
What the 2023 Amendment Act changed
| Provision | Before (consolidated text) | After (as amended by the Competition (Amendment) Act, 2023) |
|---|---|---|
| Section 43 | "shall be punishable with fine" | "shall be liable to a penalty"; rupees one lakh a day and maximum rupees one crore unchanged |
| Section 44, upper limit | "rupees one crore" | "rupees five crore"; floor of rupees fifty lakhs unchanged |
| Section 45, marginal heading | "offences" | "contraventions" |
| Section 45(1), opening | "Without prejudice to the provisions of section 44" | "Without prejudice to the provisions of sub-section (6) of section 6 and section 44" |
| Section 45(1), consequence | "punishable with fine" up to rupees one crore | "liable to a penalty" up to rupees one crore |
How the three sections fit together
The sections operate at different points. Section 43 is about obeying directions during an inquiry or investigation. Section 44 is narrow: it applies to "a party to a combination" who makes a false statement or leaves out a material particular. Section 45 is wider: it applies to anyone who furnishes or is required to furnish particulars, documents or information, and it reaches altering, suppressing or destroying documents. Because Section 45(1) opens with "without prejudice to the provisions of Section 44", one set of facts can in principle be looked at under both; the sources do not say how the Commission chooses.
Section 42(2), as amended, lists Sections 43, 44 and 45 among the sections whose orders attract a daily penalty if they are not complied with; see Sections 42 and 42A. The Commission's 2024 penalty guidelines cover the computation for Sections 42 to 45; see how penalty is computed under the Monetary Penalty Guidelines.
Practical example
Meridian Components Ltd (invented) files a notice of a proposed acquisition and, in the form, leaves out an existing supply contract with the target, knowing it to be material. The Commission, on finding this, can determine a penalty under Section 44 of not less than rupees fifty lakhs and up to rupees five crore. If the same company later shreds correspondence that the Director General has asked for, Section 45 allows a separate penalty of up to rupees one crore for suppressing or destroying a document required to be furnished. And if it ignores a direction of the Director General to appear, Section 43 adds up to rupees one lakh for each day, subject to rupees one crore.
Need help with a Commission filing or notice?
Accurate and complete filings are the safest protection against these sections; but if a statement has already gone in and you now think it was incomplete, speak to us before the Commission raises it. Our legal dispute resolution team can read through what was filed and advise on the next step.
Key takeaways
- Section 43: up to rupees one lakh for each day, subject to a maximum of rupees one crore, for ignoring directions under Section 36 or Section 41(2).
- Section 44: now not less than rupees fifty lakhs and up to rupees five crore for a false statement or omission by a party to a combination.
- Section 45: up to rupees one crore for false information, omission, or altering, suppressing or destroying required documents.
- The 2023 Act replaces "punishable with fine" with "liable to a penalty" in Sections 43 and 45 and widens the opening words of Section 45(1).
Read next
- Sections 42 and 42A of the Competition Act, 2002: non-compliance with Commission orders
- Section 43A of the Competition Act, 2002: penalty for not notifying a combination
- Penalties under the Competition Act for cartels and abuse
- Section 41: Director General, search and seizure
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.