Write a short note on mrtp and industrial act 1951.
Answers
The Monopolies and Restrictive Trade Practices Act (MRTP Act) was passed by Parliament of India on 18 December 1969 and got president’s assent on December 27, 1969,. But it came into force from June 1, 1970.
Contents
Current Status of MRTP Act
This act is not in force in India currently as it was repealed and was replaced by Competition Act 2002 with effect from September 1, 2009. The MRTP commission was replaced by Competition Commission of India.
Aims & Objectives of MRTP Act
On the basis of recommendation of Dutt Committee, MRTP Act was enacted in 1969 to ensure that concentration of economic power in hands of few rich. The act was there to prohibit monopolistic and restrictive trade practices. It extended to all of India except Jammu & Kashmir.
The aims and objectives of this act were:
To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few rich.
To provide for the control of monopolies, and
To prohibit monopolistic and restrictive trade practices.
Non-applicability of MRTP Act
Please note that 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.
Definition of Monopolistic Trade Practice
The act defines the Monopolistic Trade Practice as “Such practice indicates misuse of one’s power to abuse the market in terms of production and sales of goods and services.
Firms involved in monopolistic trade practice tries to eliminate competition from the market.
Then they take advantage of their monopoly and charge unreasonably high prices.
They also deteriorate the product quality, limit technical development, prevent competition and adopt unfair trade practices”
On 8th may 1952 the central government published the industrial act (IDRA).This Act regulates in the all over India.
Explanation:
Goals of this Act are as follow-
development of industries-this Act comes under the central govt.and they first listed the important industries for development which will effect the country and also effect the economic field of the India.
Implementation of industrial policy-This Act also include the implementation of industrial policy which directly or indirectly effect the development of industries.
Planning for new undertakings-This act implement the rule of registration and license of exist undertakings for the production and development.