Introduction
“In gatherings of individuals within the same profession or trade, discussions often devolve into schemes against the public interest or plans to raise prices. Cartels represent the most severe form of anti-competitive behaviour and are considered the epitome of antitrust wrongdoing. To address the growing prevalence of cartels disrupting fair markets and promoting unfair practices such as price inflation, output restrictions, and credit limitations, the Indian government has partially adopted subordinate legislation in the form of Leniency Provisions. Due to their secretive nature and robust enforcement, identifying cartel agreements is challenging. However, cartel members weigh the risk of punishment against the benefits of illegal activity, particularly when faced with significant monetary penalties. Consequently, they are compelled to disclose their anti-competitive behaviour. According to the Competition Act of 2002, the formation of cartels is deemed the most serious violation of competition law in India. In exchange for information aiding the Competition Commission of India in identifying and penalizing other cartel members, early confessors and collaborators receive leniency under the leniency initiative established by this Act, the Competition Commission of India (Lesser Penalty) Regulations of 2009, and the Amended Regulations of 2017. The leniency provision within the current legislation does not lure cartel members into a cycle of leniency. Instead, it is seen as an effective method for uncovering cartels because their activities are so well-guarded that breaching such agreements requires insider knowledge. In essence, the leniency program serves as whistle-blower protection by rewarding members who disclose cartel activity to the CCI. The establishment of the leniency program in India resulted from a convergence of essential needs and cognitive processes.”