NEW DELHI: In a big blow to cement manufacturers, fair-trade regulator, the Competition Commission of India, (CCI) on Wednesday slapped a penalty of over ₹6,700 crore on 10 cement companies and the Cement Manufacturers Association (CMA) for indulging in cartelisation.
The order has been passed by the CCI following directions issued by the Competition Appellate Tribunal in December, an official statement said.
While penalties on Jaiprakash Associates and UltraTech are ₹1,323.60 crore and ₹1,175.49 crore, respectively, for ACC Ltd it is ₹1,147.59 crore.
The fines on other companies are ₹274.02 crore (Century), ₹187.48 crore (India Cements), ₹128.54 crore (JK Cements), ₹490.01 crore (Lafarge), ₹258.63 crore (Ramco), ₹1,163.91 crore (ACL) and ₹167.32 crore (Binani).
The CMA has been fined ₹0.73 crore.
The CCI also has directed all cement companies to “cease and desist” from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.
The CMA has been directed to “disengage and disassociate itself from collecting wholesale and retail prices through member cement companies or otherwise.” The association has been restrained from collecting and circulating details relating to production and dispatch by cement companies.
The CCI also said in its order that cement companies were interacting using the platform made available by the CMA. “Such interactions have been found to have transgressed the limits in sharing of information and extended to discussions on cost, prices, production and capacities, thereby facilitating the enterprises to determine prices and production in a concerted and collusive manner.”