POWER OF THE CENTRAL GOVERNMENT TO DIRECT SEVERANCE OF INTER-CONNECTION BETWEEN
(1) Notwithstanding anything contained in this Act or in any other law for the time
binge in force, the Commission may, -
(i) upon receiving a complaint of facts from any trade association or from any consumer or
a registered consumers' association, whether such consumer is a member of that consumers'
association or not, or
(ii) upon a reference made to it by the Central Government or a State Government, or
(iii) upon its own knowledge or information.
If it is of opinion that the continuance of inter-connection of an undertaking (hereafter
in this section referred to as the principal undertaking) with any other undertaking is
detrimental to -
(a) the interests of the principal undertaking; or
(b) the future development of the principal undertaking; or
(c) the steady growth of the industry to which the principal undertaking pertains; or
(d) the public interest.
Inquire 83 as to whether it is expedient in the public interest to make an order for the
severance of such inter-connection on one or more of the grounds aforesaid,
and the Commission may, after such hearings as it think fit, report to the Central
Government its opinion thereon and shall, where it is of opinion that the severance of the
inter-connection of the principal undertaking with any other undertaking ought to be made,
include in its report a scheme with respect to such severance, providing therein for the
matters specified in sub-section (2).
(2) Where, in any such report, the Commission recommends the severance of any such
inter-connection, the scheme with respect thereto shall provide for the following matters,
(a) the manner in which, and the period within which, the severance of such
inter-connection is to be effected;
(b) the appropriation or transfer of any share or other interest held by the owner in, or
in relation to, the principal undertaking, in the other undertaking or the termination of
any office or employment in such undertaking, which may be required for effecting the
severance of such inter-connection;
(c) compensation, if any, payable for the severance of such interconnection; and
(d) such incidental, consequential and supplemental matters, as may be necessary to secure
the severance of such inter-connection.
(3) If the Commission so recommends, the Central Government may, notwithstanding anything
contained in any other law for the time being in force, by an order in writing, direct the
severance of inter-connection between the undertakings, as far as may be, in accordance
with the scheme included in the report of the Commission.
(4) Where the Central Government makes, or intends to make, an order for any purpose
mentioned in sub-section (3), it may, with a view to achieving that purpose, prohibit or
restrict the doing of anything that might impede the operation or making of the order and
may impose on any person such obligations as to the carrying on of any activities or the
safeguarding of any assets, as it may think fit, or it may, by order, provide for the
carrying on of any activities or safeguarding of any assets either by the appointment of a
person to conduct, or supervise the conduct of, any such activities or in any other
(5) Notwithstanding anything contained in any other law for the time being in force or in
any contract or in any memorandum or articles of association, an officer of a
company who ceases to hold office as such in consequence of the severance of
inter-connection between undertakings shall not be entitled to claim any compensation for
Explanation : For the purposes of this section, "inter-connection" means
inter-connection of an undertaking with any other undertaking in any manner specified in
clause (g) of section 2. 82.
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