mrtp act
THE MONOPOLISTIC AND RESTRICTIVE TRADE PRACTICES ACT, 1969(MRTP ACT)
The Monopolies and Restrictive Trade Practices bill was introduced by the Rajya Sabha in 1967 and drastic changes were made by the Joint parliamentary committee. It was finally passed in the house in on 18 December 1969 and got president's assent on December 27, 1969, but was brought in force from June 1, 1970.
The directive principles of our constitution suggest that ownership and control of material resources should be widely distributed and there should be no concentration of wealth and means of production. With this in mind, The Monopolistic and Restrictive Trade Practices Act, 1969 was enacted so as to
To ensure that the operation of the economic system does not result in the concentration of economic power to the common man’s detriments,
To provide for the control of monopolies
To prohibit monopolistic and restrictive trade practices
The MRTP Act extends to the whole of India except Jammu and Kashmir. The act amended in 1974, 1980, 1984, 1988 and 1991. The act placed many restrictions on companies having assets of more than Rs. 100 crores in respect of new projects, diversification, mergers, and even in the appointed of directors.
MRTP act is not applicable to:
Government Company and undertaking owned by Government.
Company established by a Central or State Act.
Trade Unions Companies which have been taken over by the central Government.
Companies owned by registered Cooperative Societies.
Any financial institution.
Scope of MRTP
Before the 1991 amendment, the MRTP law sought to control the concentration of economic power by requiring undertakings that had assets over Rs. 100 crores and/or were 'dominant undertakings' to register themselves with the Monopolies and Restrictive Trade Practices Commission.
MRTP controls the following aspects of economic activity: Restrictive Trade Practices Unfair Trade Practices Monopolistic Trade Practices
The Monopolies and Restrictive Trade Practices bill was introduced by the Rajya Sabha in 1967 and drastic changes were made by the Joint parliamentary committee. It was finally passed in the house in on 18 December 1969 and got president's assent on December 27, 1969, but was brought in force from June 1, 1970.
The directive principles of our constitution suggest that ownership and control of material resources should be widely distributed and there should be no concentration of wealth and means of production. With this in mind, The Monopolistic and Restrictive Trade Practices Act, 1969 was enacted so as to
To ensure that the operation of the economic system does not result in the concentration of economic power to the common man’s detriments,
To provide for the control of monopolies
To prohibit monopolistic and restrictive trade practices
The MRTP Act extends to the whole of India except Jammu and Kashmir. The act amended in 1974, 1980, 1984, 1988 and 1991. The act placed many restrictions on companies having assets of more than Rs. 100 crores in respect of new projects, diversification, mergers, and even in the appointed of directors.
MRTP act is not applicable to:
Government Company and undertaking owned by Government.
Company established by a Central or State Act.
Trade Unions Companies which have been taken over by the central Government.
Companies owned by registered Cooperative Societies.
Any financial institution.
Scope of MRTP
Before the 1991 amendment, the MRTP law sought to control the concentration of economic power by requiring undertakings that had assets over Rs. 100 crores and/or were 'dominant undertakings' to register themselves with the Monopolies and Restrictive Trade Practices Commission.
MRTP controls the following aspects of economic activity: Restrictive Trade Practices Unfair Trade Practices Monopolistic Trade Practices