Section 48A 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 48A of the Competition Act, 2002 is a new section inserted by the Competition (Amendment) Act, 2023. It allows an enterprise facing an inquiry for a vertical agreement under Section 3(4) or an abuse of dominant position under Section 4 to apply to settle the proceedings on payment of an amount and on terms agreed with the Commission. It is not open to cartel cases under Section 3(3).
An enterprise against whom an inquiry has been started under Section 26(1) for contravening Section 3(4) or Section 4 may apply for settlement. The application can be made after the Director General's report is received and before an order under Section 27 or Section 28, within a time set by regulations. If the Commission agrees, the applicant pays the settlement amount. No appeal lies under Section 53B against a settlement order, and settlement amounts go to the Consolidated Fund of India.
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 48A has no counterpart in the consolidated text; it is written here from the section inserted by clause 35 of the amending Act, which substituted Section 48 and inserted Sections 48A, 48B and 48C. The gazette does not print a chapter heading for it; read it as placed after Section 48. 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 a Commission order has reached you, our legal dispute resolution team can help assess whether this route suits your case.
Section 48A(1): who can apply
"Any enterprise, against whom any inquiry has been initiated under sub-section (1) of section 26 for contravention of sub-section (4) of section 3 or section 4, may, for settlement of the proceeding initiated for the alleged contraventions, submit an application in writing to the Commission in such form and upon payment of such fee as may be specified by regulations."
Two limits are worth noting. The enterprise must already be under an inquiry ordered under Section 26(1). And the contraventions must be of Section 3(4) (vertical agreements such as tie-in or exclusive dealing, see Section 3(4) and (5)) or of Section 4 (abuse of dominant position, see Section 4). Section 3(3) cartels are not mentioned; for those the route is lesser penalty under Section 46. The definition of "settlement" in Section 2 is covered in our article on the Section 2 definitions.
Section 48A(2): when
"An application under sub-section (1) may be submitted at any time after the receipt of the report of the Director General under sub-section (4) of section 26 but prior to such time before the passing of an order under section 27 or section 28 as may be specified by regulations." Compare commitment under Section 48B, which comes earlier in the case.
Section 48A(3): what the Commission weighs
"The Commission may, after taking into consideration the nature, gravity and impact of the contraventions, agree to the proposal for settlement, on payment of such amount by the applicant or on such other terms and manner of implementation of settlement and monitoring as may be specified by regulations." The amount and the terms are left to regulations.
Section 48A(4): objections
"While considering the proposal for settlement, the Commission shall provide an opportunity to the party concerned, the Director General, or any other party to submit their objections and suggestions, if any." The Act says "shall": the Commission must hear objections before agreeing.
Section 48A(5): rejection
"If the Commission is of the opinion that the settlement offered under sub-section (1) is not appropriate in the circumstances or if the Commission and the party concerned do not reach an agreement on the terms of the settlement within such time as may be specified by regulations, it shall, by order, reject the settlement application and proceed with its inquiry under section 26."
Section 48A(6) and (7): procedure and no appeal
Sub-section (6): "The procedure for conducting the settlement proceedings under this section shall be such as may be specified by regulations." Sub-section (7): "No appeal shall lie under section 53B against any order passed by the Commission under this section." Section 53B is the ordinary appeal to the Appellate Tribunal; see Section 53B.
Section 48A(8): where the money goes
"All settlement amounts, realised under this Act shall be credited to the Consolidated Fund of India." Compare Section 47, which credits penalties; see Sections 47 and 48C.
What the 2023 Amendment Act changed
Section 48A is new; there is no earlier text to compare. The table records the position instead.
| Feature | Before the 2023 Act | Under Section 48A (inserted by the Competition (Amendment) Act, 2023) |
|---|---|---|
| Settlement of an inquiry | Not provided in the consolidated text | Available for Section 3(4) and Section 4 inquiries |
| Time | Not applicable | After the Director General's report, before an order under Section 27 or 28, as specified by regulations |
| Appeal | Not applicable | None under Section 53B |
| Money | Not applicable | Settlement amounts credited to the Consolidated Fund of India |
The 2024 Settlement Regulations in one paragraph
The Competition Commission of India (Settlement) Regulations, 2024, as notified on 6th March, 2024, fill in what Section 48A leaves to regulations: for example, as printed, an application is not entertained after 45 days from receipt of the Director General's report, with a further 30 days where sufficient cause is shown; objections are invited within 21 days; and the settlement amount is a base amount discounted by 15%. The full structure, the fee slabs and the revocation procedure are explained in our overview of the Settlement Regulations. Later amendments should be checked. Revocation is under Section 48C.
Practical example
Greenfield Appliances Ltd (invented) is found by the Director General to have imposed exclusive dealing on its distributors, an inquiry under Section 26(1) for Section 3(4). It believes the case will go against it. After receiving the report it applies for settlement within the time set by regulations, offers a payment and conduct changes, and the Commission invites objections from the informant and others. If the Commission is satisfied, it agrees on payment; the order cannot be appealed under Section 53B. If it is not satisfied, it rejects the application and the Section 26 inquiry resumes.
Need help deciding whether to settle?
Settlement involves a payment, admissions of facts and waivers, and a closed route of appeal. Our legal dispute resolution team can compare settlement with defending the inquiry and prepare the application and the objections response. For the general pattern of Commission proceedings, see CCI powers and procedure.
Key takeaways
- Settlement is available only for inquiries into Section 3(4) or Section 4.
- Apply after the Director General's report and before an order under Section 27 or 28, within the time set by regulations.
- The Commission must invite objections; it may agree on payment or reject and resume the inquiry.
- No appeal lies under Section 53B; amounts go to the Consolidated Fund of India.
- Check which 2023 provisions have been notified.
Read next
- Section 48B of the Competition Act, 2002: commitment offers
- Sections 47 and 48C of the Competition Act, 2002: crediting of penalties and revocation
- Settlement applications under the CCI Settlement Regulations, 2024
- How to file a complaint with the CCI
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.