CCI faces quorum crunch as MCA moves to fill two member vacancies
The competition watchdog could be left with only two members, potentially affecting antitrust proceedings even as merger clearances may continue under the doctrine of necessity
 "CCI faces quorum crunch as MCA moves to fill two member vacancies")
The Ministry of Corporate Affairs (MCA) has invited applications to fill two vacancies at the Competition Commission of India (CCI), after one member resigned in July and another is due to complete his term in September. With both positions falling vacant, the competition watchdog will be left with just two members, raising concerns over its ability to meet the quorum required to function.
CCI member Anil Agarwal resigned on July 14 after a three-year tenure, while member Deepak Anurag’s term will end in September.
A CCI member holds office for five years from the date of joining or until reaching the age of 65, whichever is earlier.
Section 22 of the Competition Act states: “...All questions which come up before any meeting of the Commission shall be decided by a majority of the Members presiding and voting… Provided that the quorum for such a meeting shall be three members.”
The Commission could continue clearing combinations, including mergers and acquisitions, with two members by invoking the doctrine of necessity. However, antitrust proceedings could come to a halt in the absence of a quorum.
The CCI is currently hearing high-profile antitrust matters involving iPhone maker Apple, food delivery platform Zomato and others.
The doctrine of necessity allows legal authorities to take actions in exceptional circumstances that may otherwise fall outside their normal legal remit. In 2023, after the CCI was left without a quorum following the vacancy in the chairman’s post, the regulator invoked the doctrine to clear pending combination deals.
Under the Competition Act, merger deals have to be assessed within 150 days, with deemed approval if the CCI is unable to form a prima facie view within the first 30 calendar days.
“Application of the doctrine of necessity means there is a timely necessity. If all combination applications are allowed to go through deemed approval because of lack of quorum, then it is detrimental to competition in the economy and can distort the market. In antitrust matters, however, there is no such timeline prescribed in the law; hence the doctrine would not be applied,” a senior policy expert said.
The notification inviting applications for the CCI member post said a person of ability, integrity and standing with special knowledge and at least 15 years of professional experience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, technology, public affairs or competition matters, including competition law and policy, is eligible for appointment as a member.