law: Monopolies and Restrictive Trade Practices Act, 1969 
  2. Definitions
  In this Act, unless the context otherwise requires-
  (a) "agreement" includes any arrangement or
  
  understanding, whether or not it is intended that such agreement shall be
  
  enforceable (apart from any provision of this Act) by legal proceedings;
  (b) "Commission" means the Monopolies and Restrictive
  
  Trade Practices Commission established under section 5;
  (c) 3["Director General" means the Director
  
  General of Investigation and Registration appointed under section 8, and
  
  includes any Additional, joint, Deputy or Assistant Director General of
  
  Investigation and Registration appointed under that section;]
   4  [(d) "dominant undertaking" means-
   5  [***]
  (iii) an undertaking which, by itself or along
  
  with inter-connected undertakings produces, supplies, distributes or otherwise
  
  controls not less than one-fourth of the total goods that are produced,
  
  supplied or distributed in India or any substantial part thereof; or
  (iv) an undertaking which provides or
  
  otherwise controls not less than one-fourth of any services that are rendered
  
  in India or any substantial part thereof.]
  [Proviso and Explanation I omitted by Act No. 58 of 1991]
  Explanation II :  Where any goods 6[* * *] are
  
  the subject of different forms of production, supply, distribution or control,
  
  every reference in this Act to such goods shall be construed as reference to
  
  any of those forms of production, supply, distribution or control, whether
  
  taken separately or together or in such groups as may be prescribed.
   4 [Explanation III:  The question as to whether
  
  any undertaking either by itself or along with inter-connected undertakings,
  
  produces, supplies, distributes or controls one-fourth of any goods or provides
  
  or controls one-fourth of any services may be determined according to any of
  
  the following criteria, namely, value, cost, price, quantity or capacity of the
  
  goods or services.]
   2 [Explanation IV   : In determining, with
  
  reference to the features specified 7[in sub-clause (iii) or
  
  sub-clause (iv)] as the case may be, the question as to whether an undertaking
  
  is or is not a dominant undertaking, regard shall be had to-
  (i) the average annual production of the goods, or the average
  
  annual value of the services provided, by the undertaking during the relevant
  
  period; and
  (ii) the figures published by such authority as the Central
  
  Government may, by notification, specify, with regard to the total production
  
  of such goods made, or the total value of such services provided, in India or
  
  any substantial part thereof during the relevant period.]
   2  [Explanation   V: In determining the
  
  question as to whether an undertaking is or is not a dominant undertaking in
  
  relation to any goods supplied, distributed or controlled in India, regard
  
  shall be had to the average annual quantity of such goods supplied, distributed
  
  or controlled in India by the undertaking during the relevant period.
  Explanation VI:  For the purposes of this clause,
  
  "relevant period" means the period of three calendar years
  
  immediately preceding that calendar year which immediately precedes the
  
  calendar year in which the question arises as to whether an undertaking is or
  
  is not a dominant undertaking.]
   8 [Explanation VII:  Where goods 6[***]
  
  produced in India by an undertaking have been exported to a country outside
  
  India, then the goods so exported shall not be taken into account in computing
  
  for the purposes of this clause-
  (i) the total goods 9[* * *] that are produced in
  
  India by that undertaking; or
  (ii) the total goods 9[* * *] that are produced,
  
  supplied or distributed in India or any substantial part thereof;]
   10  [(da) "financial institution" means-
  (i) a public financial institution specified
  
  in or under section 4A of the Companies Act, 1956 (1 of 1956);
  (ii) a State Financial, Industrial or
  
  Investment Corporation;
  (iii) the State Bank of India or a subsidiary
  
  bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of
  
  1959);
  (iv) a nationalized bank, that is to say, a
  
  corresponding new bank as defined in clause (d) of section 2 of-
  (i) the Banking Companies (Acquisition and
  
  Transfer of Undertakings Act, 1970 (5 of 1970); or
  (ii) the Banking Companies (Acquisition and
  
  Transfer of Undertakings Act, 1980;
  (v) the General Insurance Corporation of India
  
  established in pursuance of the provisions of section 9 of the General
  
  Insurance Business (Nationalization) Act, 1972 (57 of 1972);
  (vi) the Industrial Reconstruction Corporation
  
  of India; or
  (vii) any other institution which the Central
  
  Government may, by notification, specify in this behalf;
   2  [(e) "goods" means goods as defined in the Sale of
  
  Goods Act, 1930 (3 of 1930), and includes,-
  (i) products manufactured, processed or mined
  
  in India;
   11  [(ii) shares and stocks including issue
  
  of shares before allotment;]
  (iii) in relation to goods supplied,
  
  distributed or controlled in India, goods imported into India;]
  [Clause (ee) omitted by Act No. 58 of 1991, w.e.f. 27th.
  
  September, 1991.]
   10  [(ef) "group" means a group of-
  (i) two or more individuals, associations of individuals, firms,
  
  trusts, trustees or bodies corporate (excluding financial institutions), or any
  
  combination thereof, which exercises, or is established to be in a position to
  
  exercise, control, directly or indirectly, over any body corporate, firm or
  
  trust; or
  (ii) associated persons.
  Explanation :  For the purposes of this clause-
  (I) a group of persons who are able, directly or indirectly, to
  
  control the policy of a body corporate, firm or trust, without having a
  
  controlling interest in that body corporate, firm or trust, shall also be
  
  deemed to be in a position to exercise control over it;
  (II) "associated persons"-
  (a) in relation to a director of a body
  
  corporate, means-
  (i) a relative of such director, and includes
  
  a firm in which such director or his relative is a partner;
  (ii) any trust of
  
  which any such director or his relative is a trustee;
  (iii) any company of which such director,
  
  whether independently or together with his relatives, constitutes one-fourth of
  
  its board of directors;
  (iv) any other body corporate, at any general
  
  meeting of which not less than one-fourth of the total number of directors of
  
  such other body corporate are appointed or controlled by the director of the
  
  first mentioned body corporate or his relative, whether acting singly or
  
  jointly;
  (b) in relation to the partner of a firm,
  
  means a relative of such partner and includes any other partner of such firm;
  
  and
  (c) in relation to the trustee of a trust,
  
  means any other trustee of such trust;
  (III) where any person is an associated person in relation to
  
  another, the latter shall also be deemed to be an associated person in relation
  
  to the former;]
  (f) "India" means, for the purposes
  
  of this Act, the territories to which this Act extends;
  [Clauses (ff) and (fff) omitted by Act No. 58
  
  of 1991, w.e.f. 27th. September, 1991]
  (g) "inter-connected undertakings"
  
  means two or more undertakings which are inter-connected with each other in any
  
  of the following manner, namely,-
  (i) if one owns or
  
  controls the other;
  (ii) where the undertakings are owned by firms,
  
  if such firms have one or more common partners,
   2  [(iii) where the
  
  undertakings are owned by bodies corporate-
  (a) if one body
  
  corporate manages the other body corporate, or
  (b) if one body corporate is subsidiary of the
  
  other body corporate, or
  (c) if the bodies
  
  corporate are under the same management, or
  (d) if one body corporate exercises control
  
  over the other body corporate in any other manner;]
  (iv) where one undertaking is owned by a body
  
  corporate and the other is owned by a firm, if one or more partners of the
  
  firm-
  (a) hold, directly or indirectly, not less
  
  than fifty per cent of the shares, whether preference or equity, of the body
  
  corporate, or
  (b) exercise control, directly or indirectly,
  
  whether as director or otherwise, over the body corporate,
  (v) if one is owned by a body corporate and
  
  other is owned by a firm having bodies corporate as its partners, if such
  
  bodies corporate are under the same management, 12[* * *]
  (vi) if the undertakings are owned or
  
  controlled by the same person or  13[by the same group],
  (vii) if one is connected with the other
  
  either directly or through any number of undertakings which are inter-connected
  
  undertakings within the meaning of one or more of the foregoing sub-clauses.
   14 [Explanation I   : For the purposes of
  
  this Act, 15[two bodies corporate,] shall be deemed to be under the
  
  same management-
  (i) if one such body corporate exercises control over the other
  
  or both are under the control of the same group or any of the constituents of
  
  the same group; or
  (ii) if the managing director or manager of one such body
  
  corporate is the managing director or manager of the other; or
  (iii) if one such body corporate holds not less than 16[one
  
  fourth] of the equity shares in the other or controls the composition of not less
  
  than 16[one-fourth] of the total membership of the board of
  
  directors of the other; or
  (iv) if one or more directors of one such body corporate
  
  constitute, or at any time within a period of six months immediately preceding
  
  the day when the question arises as to whether such bodies corporate are under
  
  the same management, constituted 17[(whether independently or
  
  together with relatives of such directors or the employees of the first
  
  mentioned body corporate) one-fourth of the directors of the other; or]
  (v) if the same individual or individuals belonging to a group,
  
  while holding (whether by themselves or together with their relatives) not less
  
  than 16[one-fourth] of the equity shares in one such body corporate
  
  also hold (whether by themselves or together with their relatives) not less
  
  than 16[one-fourth] of the equity shares in the other; or
  (vi) if the 2[same body corporate or bodies corporate
  
  belonging to a group, holding, whether independently or along with its or their
  
  subsidiary or subsidiaries, not less than one-fourth of the equity shares] in
  
  one body corporate, also hold not less than 16[one-fourth] of the
  
  equity shares in the other; or
  (vii) if not less than 16[one-fourth] of the total
  
  voting power 18[in relation to] each of the two bodies corporate is
  
  exercised or controlled by the same individual (whether independently or
  
  together with his relatives) or the same body corporate (whether independently
  
  or together with its subsidiaries); or
  (viii) if not less than 16[one-fourth] of the total
  
  voting power 18[in relation to] each of the two bodies corporate is
  
  exercised or controlled by the same individuals belonging to a group or by the
  
  same bodies corporate belonging to a group, or jointly by such individual or
  
  individuals and one or more of such bodies corporate; or
  (ix) if the directors of the one such body corporate are
  
  accustomed to act in accordance with the directions or instructions of one or
  
  more of the directors of the other, or if the directors of both the bodies
  
  corporate are accustomed to act in accordance with the directions or
  
  instructions of an individual, whether belonging to a group or not.
  Explanation II :  If a group exercises control over a
  
  body corporate, that body corporate and every other body corporate, which is a
  
  constituent of or controlled by, the group shall be deemed to be under the same
  
  management.
  Explanation III:  If two or more bodies corporate under
  
  the same management hold, in the aggregate, not less than one-fourth equity
  
  share capital in any other body corporate, such other body corporate shall be
  
  deemed to be under the same management as the first mentioned bodies corporate.
  Explanation IV:  In determining whether or not two or
  
  more bodies corporate are under the same management, the shares held by 19[financial
  
  institutions] in such bodies corporate shall not be taken into account.
  Illustration
  Undertaking B is inter-connected with undertaking A and
  
  undertaking C is inter-connected with undertaking B. Undertaking C is
  
  inter-connected with undertaking A; if undertaking D is inter-connected with
  
  undertaking C, undertaking D will be inter-connected with undertaking B and
  
  consequently with undertaking A and so on.
  [Explanation omitted by Act No. 30 of 1984, w.e.f. 1st.
  
  August, 1984.]
  [Clause (gg) omitted by Act No. 58 of 1991, w.e.f. 27th.
  
  September, 1991]
  (h) "member" means a member of the Commission;
  (i) "monopolistic trade practice" means a trade
  
  practice which has, or is likely to have, the effect of-
  (i) 20[maintaining the prices of
  
  goods or charges for the services] at an unreasonable level by limiting,
  
  reducing or otherwise controlling the production, supply or distribution of
  
  goods 6[* * *] or the supply of any services or in any other manner;
  (ii) unreasonably preventing or lessening
  
  competition in the production, supply or distribution of any goods or in the
  
  supply of any services;
  (iii) limiting technical development or
  
  capital investment to the common detriment or allowing the quality of any goods
  
  produced, supplied or distributed, or any service rendered, in India to
  
  deteriorate;
   21  [(iv) increasing unreasonably-
  (a) the cost of
  
  production of any goods; or
  (b) charges for the provision, or maintenance,
  
  of any services;
  (v) increasing unreasonably-
  (a) the prices at which goods are, or may be,
  
  sold or re-sold, or the charges at which the services are, or may be, provided;
  
  or
  (b) the profits which are, or may be, derived
  
  by the production, supply or distribution (including the sale or purchase) of
  
  any goods or by the provision of any services;
  (vi) preventing or lessening competition in
  
  the production, supply or distribution of any goods or in the provision or
  
  maintenance of any services by the adoption of unfair methods or unfair or
  
  deceptive practices;]
   2  [(j) "notification" means a notification
  
  published in the Official Gazette;
  (ja) "owner", in relation to an undertaking, means an
  
  individual, Hindu undivided family, body corporate or other association of
  
  individuals, whether incorporated or not, or trust (whether public or private
  
  or whether religious or charitable) who or which owns or controls, the whole or
  
  substantially the whole of such undertaking, and includes any associated person
  
  who is a constituent of a group and who has the ultimate control over the
  
  affairs of such undertaking;]
  (k) "prescribed" means prescribed by rules made under
  
  this Act;
  (l) "price", in relation to the sale of any goods or
  
  to the performance of any services, includes every valuable consideration,
  
  whether direct or indirect, and includes any consideration which in effect
  
  relates to the sale of any goods or to the performance of any services although
  
  ostensibly relating to any other manner or thing;
   22  [(ll) "produce" includes manufacture and all its
  
  grammatical variations and cognate expressions shall be construed accordingly;]
  (m) "register" means the register kept by the 23[Director
  
  General] under section 36;
   24  [(n) "registered consumers" association"
  
  means a voluntary association of persons registered under the Companies Act,
  
  1956 (1 of 1956) or any other law for the time being in force which is formed
  
  for the purpose of protecting the interests of consumers generally and is
  
  recognized by the Central Government as such association on an application made
  
  in this behalf in such form and such manner as may be prescribed.]
  (o) "restrictive trade practice’ means a trade practice
  
  which has, or may have, the effect of preventing, distorting or restricting
  
  competition in any manner and in particular-
  (i) which tends to obstruct the flow of
  
  capital or resources into the stream of production, or
  (ii) which tends to bring about manipulation
  
  of prices, or conditions of delivery or to affect the flow of supplies in the
  
  market relating to goods or services in such manner as to impose on the
  
  consumers unjustified costs or restrictions;
  (p) "retailer", in relation to the sale of any goods,
  
  includes every person, other than a wholesaler, who sells the goods to any
  
  other person; and in respect of the sale of goods by a wholesaler, to any
  
  person for any purpose other than re-sale, includes that wholesaler;
  [Clause (q) omitted by Act No. 58 of 1991, w.e.f. 27th.
  
  September, 1991]
  (r) "service" means service 6[* * *] which
  
  is made available to potential users and includes the provision of facilities
  
  in connection with 25[banking, financing, insurance 26[chit
  
  fund, real estate] transport, processing], supply of electrical or other
  
  energy, board or lodging or both, entertainment, amusement or the purveying of
  
  news or other information, but does not include the rendering of any service
  
  free of charge or under a contract of personal service;
   26 [Explanation :  For the removal of
  
  doubts, it is hereby declared that any dealings in real estate shall be
  
  included and shall be deemed always to have been included within the definition
  
  of "service";]
  (s) "trade" means any trade, business, industry,
  
  profession or occupation relating to the production, supply, distribution or
  
  control of goods and includes the provision of any services;
  (t) "trade association" means a body of persons (whether
  
  incorporated or not) which is formed for the purpose of furthering the trade
  
  interests of its members or of persons represented by its members;
  (u) "trade practice" means any practice relating to
  
  the carrying on of any trade, and includes-anything done by any person which
  
  controls or affects the price charged by, or the method of trading of, any
  
  trader or any class of trader; a single or isolated action of any person in
  
  relation to any trade;
   2  [(v) "undertaking" means an enterprise which is,
  
  or has been, or is proposed to be, engaged in the production, storage, supply,
  
  distribution, acquisition or control of articles or goods, or the provision of
  
  services, of any kind, either directly or through one or more of its units or
  
  divisions, whether such unit or division is located at the same place where the
  
  undertaking is located or at a different place or at different places.
  Explanation I:  In this clause-
  (a) "article" includes a new article and
  
  "service" includes a new service;
  (b) "unit" or "division", in relation to an
  
  undertaking includes-
  (i) a plant or factory established for the
  
  production, storage, supply, distribution, acquisition or control of any
  
  article or goods;
  (ii) any branch or office established for the
  
  provision of any service.
  Explanation II:  For the purposes of this clause, a body
  
  corporate, which is, or has been, engaged only in the business of acquiring,
  
  holding, underwriting or dealing with shares, debentures or other securities of
  
  any other body corporate shall be deemed to be an undertaking.
  Explanation III:  For the removal of doubts, it is hereby
  
  declared that an investment company shall be deemed, for the purposes of this
  
  Act, to be an undertaking;
  [Clauses (vv) and (w) omitted by Act No. 58 of 191, 27th.
  
  September, 1991]
  (x) "wholesaler", in relation to the sale of any
  
  goods, means a person who 27[sells the goods, either in bulk or in
  
  large quantities, to any person for the purposes of re-sale, whether in bulk or
  
  in the same or smaller quantities;]
  (y) words and expressions used but not defined in this Act and
  
  defined in the Companies Act, 1956 (1 of 1956), have the meanings respectively
  
  assigned to them in that Act.