MC EXCLUSIVE CCI may probe leak of sensitive info in Asian Paints case to law firm, say govt sources

“CCI is probing abuse of dominance after a complaint was received against Asian Paints by Birla Opus. Before the DG could start the investigation and before a formal order could be passed, the matter was leaked to some leading law firm by an internal employee relating to the case for extraneous reasons,” the source told Moneycontrol.

“The result would be affecting the sacrosanct nature of inquiry before the Commission,” he added.

According to sources, this is not the first time that details of an ongoing competition law investigation have prematurely reached legal counsel representing stakeholders. A similar breach allegedly occurred during the CCI’s inquiry into Google, raising a pattern of concern over internal controls.

The source indicated that the CCI may consider issuing an internal warning or initiating a formal inquiry into the “selective leakage” of information through legal intermediaries.

“The internal direction could be a warning or an inquiry into this selective leakage through law firms,” he said.

If the breach is confirmed, the Commission could also recommend action by the Bar Council against the concerned law firm, and in extreme cases, dismiss the official found responsible for the leak.

“The Commission can set up an inquiry committee against the official leakage,” he said.

The Commission is expected to take a call shortly on whether to set up a disciplinary committee to ascertain internal lapses and suggest corrective action.

Moneycontrol has reached out to CCI, Asian Paints and the law firm for their comments. The law firm is not being named immediately as the Commission is still examining the issue. This story will be updated once their responses are received.

Detrimental to investigation

“The CCI is yet to direct the DG to investigate Asian Paints. But because of the leakage, it may become difficult for the DG to complete the investigation within one year, and the timeline may be affected and delayed,” the source said.

The regulator is believed to be assessing the nature of the information leaked and how it reached the law firm involved, especially as the case is still in the early stages of inquiry. The source flagged the breach as a violation of confidentiality protocols, with potential implications for the credibility and timeline of the final order.

The unauthorised sharing of information during an active regulatory investigation not only undermines the Commission’s impartiality but may also erode public trust in the fairness of its procedures, he said.

“The CCI operates under strict confidentiality provisions as per the Competition Act. A leak of this nature not only prejudices the parties involved but also exposes the Commission to judicial scrutiny and delays,” the source said, requesting anonymity.

Under current norms, once an investigation is ordered, the DG is required to complete the probe typically within 60 days, extendable up to one year in complex cases. Any procedural disruption caused by such a leak could further stall the investigation, he said.

“A leak at this stage can vitiate the entire process, as parties may get an undue advantage or mount legal defence based on information not officially available. It reflects poorly on internal governance,” he added.