MRTP Act, ( Monopolies & Restrictive Trade Practices (MRTP) Act, 1969 )

MRTP Act,  ( Monopolies & Restrictive Trade Practices (MRTP) Act, 1969 )

The MRTP Act was introduced to provide that the operation of the economic system does not result in the Concentration of economic power in the hands of a few people.

MRTP Act का अर्थ है कि Industries या कुछ लोगो के हाथ collection , monopoly ( एकाधिकार होना ) या फिर  Concentration ( संकेंद्रण ) ना आ जायें इसलिए govt. ने  मे 1969 में इस Act को लागू किया।

Competition होगा तभी economy grow होगी otherwise इसे economy descrese होगी |

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MRTP Act लागू होने से पहले ???

According to Maholanobis’s committee in 1964, the Monopolies Enquiry Commission survey in 1965 and he discovered the possibilities of increasing Concentration in the industrial sector through the monopolistic power & restrictive trade practices by large business houses.

Maholanobis Committee ने survey करके  बताया  कि कुछ industries के मालिक monopolistic Power & restrictive strade practies at follow कर रहे है इसलिए govt  1969 इस MRTP Act को लायी |

To Curb ( निंयत्रण रखना ) these tendencies, the government of India passed the Monopoly Restrictive Trade Practices (MRTP) Act in 1969 and Set up the MRTP Commission in 1970. And in 1984, the Concept of unfair trade practices was added to MRTP Act.

Purpose of the MRTP Act

MRTP Act, of 1969 was enacted with the Single objective of achieving the largest Possible production with the least damage to people at large & securing maximum benefits.

MRTP Purpose Basically यही था जब नये Business  establish  हो तो Damage  कम से कम हो | Company को मुनाफा ज्यादा से ज्यादा हो।

Current status MRTP MPTP Act, in India. 
  • Not in an existing MRTP Act in India.
  • It was replaced by the Competition Act 2002.
  • MRTP Commission was replaced by competition the Commission of India.
Main objectives of the MRTP Act, 1969
  • To ensure that the economic system does the operation of not result in the Concentration of Economic Power in the hands of a few rich people. ( कुछ लोगों के हाथ मे economy power ना चली जाए। )
  • To prohibit monopolistic trade practices. (government ही monobely कर सकती है)
  • To prohibit restrictive trade practices / Unfair trade practices.
Applicability of the MRTP Act, 1969  (MRTP Act is applicable to all undertakings except, )
  • Undertaking situated in the state of J&K. (not followed)
  • Trade Union / other associations of workmen or employees” formed for their own reasonable protection.
  • Undertaking owned or controlled by a govt Co.
  • Industrial units under currency Coinage.

The (MRTP Act) also regulates three types of prohibited trade practices.

  1. Monopolistic Trade Practice.
  2. Restrictive Trade Practice.
  3. Unfair Trade Practice


Monopolistic Trade Practice

As per Section 2 (i)  of the MRTP Act, 1969 trade Practice shall amount to a monopolistic trade practice when it leads, or is likely to lead to any of the following effects.

  • Unreasonably high Price.
  • Unreasonable high Cost of the production of goods or the provision of services.
  • Unreasonable high profits.
  • Prevention or reduction of competition.(अगर आप अपने competitor  का Business खत्म तब भी आप करेगे तो जब भी आप MTP के दायरे मे आएंगे | )
  • Limited techical development
  • Limited capital investment.
  • Deterioration in the quality of good  (अगर आप उच्च मुल्य के product में बेकार  quality  का सामान बेच रहे है तो जब भी आप MTPs मे आयेंगे।

Restrictive Trade Practice

As per section 2 (0), restrictive trade Practice means a trade practice which has or Preventing(रोकथाम), distorting (बिगाड़ना), restricting (प्रतिवाद), Competition in any manner and in particular.

  • Which tends to obstruct the flow of capital, and resources into the stream of Production.
  • Which tends to bring about manipulation of prices conditions of delivery or follow the flow to affect supplies the in the market relating to goods or services in such manners as to impose consumers unjustified costs or restrictions.(Restrictive मतलब यहा आप रोक रहे हो  Compeition.)

Unfair Trade Practices

Section 36(A) of the MRTP Act defines an unethical trade > Promoting the sale गलत तरीके से

  • False Advertisement ( गलत प्रचार करना )
  • Bait /Switch( बोला कुछ करा कुछ )
  • Offering gifts or Prices with the intention of providing them
  • Contest (No-one getting it)
  • Hoading (To promote their image destroys another Company.)


Know More about MBA topic Like , C.S.R , Cadbury Committee Report


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