Report No. 199
Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act)
The MRTP Act was enacted in 1969 and became effective from 1 st June, 1970. The aims and objects of the Act as stated in the preamble was "an Act to provide that the operation of the economic system does not result in the concentration of the economic power to the common detriment, for the control of monopolies, for the prohibition of monopolistic and restrictive trade practices and for matters connected therewith or incidental thereto", which is identical with the preamble of the draft MRTP Bill 1965 prepared by the MRTP Commission. However, the MRTP Act, 1969 delinked restrictive trade practices from the concept of dominant undertaking. The Act has also elaborated the definition of monopolistic and restrictive trade practices in more comprehensive terms.
The application and operation of the provisions of the MRTP Act, are related to: (a) control and regulation of concentration of economic power which was to the common detriment and (b) prohibition or regulation of monopolistic or restrictive trade practices, actually emanating out of the Directive Principles of State Policy, particularly articles 39(b) and (c) and the Act enjoys the umbrella of Article 31 specially after it has been put under the IX Schedule of the Constitution. There are certain provisions in MRTP Act, 1969 dealing with specific types of contract.