Madison claims CCI acted like ED before Delhi HC

The Delhi High Court on Monday heard arguments in a petition filed by Madison Communications Pvt. Ltd., challenging the Competition Commission of India’s (CCI) investigative procedures, search and seizure operations, and the scope of the Director General’s (DG) authority. The bench was led by Justice Sachin Datta.

The agency seeks to quash the CCI’s search and seizure action, declare it illegal, and set aside the regulator’s initial prima facie order under Section 26(1) of the Competition Act. Senior counsel for Madison argued that the DG lacks independent authority to expand the investigation to new parties without the Commission’s prior approval. The counsel was quoted in media reports as saying that “the CCI behaved like the Enforcement Directorate, as if it was a criminal case,” and described the DG’s actions as a “fishing and roving inquiry.”

The legal team also highlighted that the agency has not been given access to seized material. As reported, the counsel stated, “The only thing shown to us is the CCI’s own order, no underlying material, no seized documents. We are expected to pay fees without even knowing how many pages or which documents are involved.”

Another issue discussed concerned Regulations 46 and 47 of the CCI (General) Regulations, which restrict lawyers’ presence during DG investigations. The agency argued that the rules unreasonably limit access to legal counsel. The bench observed that if the Supreme Court has made an interim arrangement on the matter, it should be followed.

The petition relates to a 20-hour search and seizure at the agency’s Mumbai office in March 2025, following a leniency application alleging a buyers’ cartel under the Indian Society of Advertisers (ISA). The agency claims that its members were victims rather than perpetrators, and that the DG’s selective searches caused reputational harm.

The High Court will reportedly continue hearing the matter after both parties submit relevant judicial orders, with a decision on the DG summons deferment expected at the next hearing on October 14.