Sections 47 and 48C 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.
Section 47 of the Competition Act, 2002 says where sums realised by the Commission go: to the Consolidated Fund of India. The Competition (Amendment) Act, 2023 extends it to the recovery of legal costs. Section 48C, a new section, lets the Commission revoke a settlement or commitment order when the applicant does not comply, does not make full and true disclosure, or when facts change materially, and makes the enterprise liable for legal costs of up to rupees one crore.
Under Section 47, sums realised as penalties (and, after 2023, as legal costs recovered) are credited to the Consolidated Fund of India. Under Section 48C, a settlement order under Section 48A or a commitment order under Section 48B stands revoked and withdrawn if the applicant does not comply, has not made full and true disclosure, or there has been a material change in the facts. The enterprise is then liable for legal costs of up to rupees one crore, and the Commission may restore or initiate the inquiry.
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. Section 47 is amended by clause 34 of the amending Act; Section 48C is inserted by clause 35. 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. If you hold a settlement or commitment order and are unsure about compliance, our legal dispute resolution team can help.
Section 47 as printed in the consolidated text
The heading is "Crediting sums realised by way of penalties to Consolidated Fund of India". The section reads: "All sums realised by way of penalties under this Act shall be credited to the Consolidated Fund of India."
What clause 34 of the amending Act does
Clause 34 says: "In section 47 of the principal Act, after the word 'penalties', the words 'and recovery of legal costs by the Commission' shall be inserted." The word "penalties" appears twice in Section 47 as printed: once in the marginal heading ("by way of penalties to Consolidated Fund of India") and once in the body ("by way of penalties under this Act"). The clause does not say which one, or both, it means. We therefore set out both possible readings and do not choose between them:
- Body only: "All sums realised by way of penalties and recovery of legal costs by the Commission under this Act shall be credited to the Consolidated Fund of India."
- Heading as well: "Crediting sums realised by way of penalties and recovery of legal costs by the Commission to Consolidated Fund of India."
On either reading the point is the same: sums realised by the Commission, whether as penalties or as recovery of legal costs, go to the Consolidated Fund of India. The gazette does not say whether the heading is amended; check the official consolidated text when it is available. Settlement amounts have their own credit rule in Section 48A(8); see Section 48A.
Section 48C: revocation of the settlement or commitment order and penalty
The marginal heading in the gazette reads "Revocation of the settlement or commitment order and penalty". The section reads: "If an applicant fails to comply with the order passed under section 48A or section 48B or it comes to the notice of the Commission that the applicant has not made full and true disclosure or there has been a material change in the facts, the order passed under section 48A or section 48B, as the case may be, shall stand revoked and withdrawn and such enterprise shall be liable to pay legal costs incurred by the Commission which may extend to rupees one crore and the Commission may restore or initiate the inquiry in respect of which the order under section 48A or section 48B was passed."
Three triggers
- Non-compliance. The applicant fails to comply with the settlement or commitment order.
- No full and true disclosure. It comes to the notice of the Commission that the applicant "has not made full and true disclosure".
- Material change. There has been "a material change in the facts".
Three consequences
- The order "shall stand revoked and withdrawn". The wording is automatic; the Act does not say here who gives notice or how. The 2024 Regulations add a show-cause step, below.
- The enterprise is liable to pay legal costs incurred by the Commission, "which may extend to rupees one crore".
- The Commission "may restore or initiate" the inquiry in which the settlement or commitment order was passed.
What the 2024 Regulations add
The Settlement Regulations (regulation 11) and the Commitment Regulations (regulation 10), both notified on 6th March, 2024, repeat the three triggers and add a requirement, as printed, that before forming an opinion the Commission gives the applicant an opportunity to show cause within a period of 15 working days of receipt of the show-cause notice. They also state that the legal costs are subject to a maximum of rupees one crore. They say costs are recoverable under Section 39 of the Act read with the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011; that instrument is not in the sources, so see Section 39 in our article on Sections 38 and 39 and check the current position. Regulations 12 (Settlement) and 11 (Commitment) allow the Commission and the Director General to rely on the information the applicant gave if the order is revoked. Later amendments to the Regulations should be checked. The overviews are in Settlement and Commitment.
What the 2023 Amendment Act changed
| Provision | Before (consolidated text) | After (as amended or inserted by the Competition (Amendment) Act, 2023) |
|---|---|---|
| Section 47 | Sums "realised by way of penalties" go to the Consolidated Fund of India | Words "and recovery of legal costs by the Commission" inserted after "penalties" (heading and/or body, see above) |
| Section 48C | Not in the consolidated text | New: revocation, legal costs up to rupees one crore, inquiry restored or initiated |
| Settlement amounts | No settlement | Section 48A(8): credited to the Consolidated Fund of India |
Practical example
Pinnacle Tyres Ltd (invented) has a commitment order under Section 48B after an inquiry on resale conditions. A year later the Commission learns that the company did not disclose a side agreement with a distributor that was relevant to the commitment. Section 48C allows the order to be treated as revoked and withdrawn because the disclosure was not full and true. The company may be asked to pay the Commission's legal costs up to rupees one crore, and the inquiry may be restored. Those costs, once realised, go to the Consolidated Fund of India under Section 47 as amended.
Need help with an existing order?
If you hold an order under Section 48A or 48B, keep a record of every term and of what you disclosed. Our legal dispute resolution team can review compliance before a question arises and respond to a show-cause notice if one comes.
Key takeaways
- Section 47: realised sums, penalties and, after 2023, recovered legal costs, go to the Consolidated Fund of India.
- Clause 34 of the amending Act does not say whether the inserted words go in the heading, the body or both; the effect on the money is the same.
- Section 48C revokes a settlement or commitment order for non-compliance, lack of full and true disclosure, or a material change in facts.
- Legal costs may extend to rupees one crore; the inquiry may be restored or initiated.
- The 2024 Regulations add a 15 working day show-cause step.
Read next
- Section 48A of the Competition Act, 2002: settlement of proceedings
- Section 48B of the Competition Act, 2002: commitment offers
- Sections 38 and 39: recovery of penalty
- Penalties under the Competition Act for cartels and abuse
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.