New Delhi: Competition Commission of India on Wednesday imposed over Rs 6,700 crore penalty on 11 cement companies, including ACC and Binani, for cartelisation.
It also imposed a penalty on Cement manufacturers Association (CMA).
CCI held the cement companies and CMA in contravention of competition act.
It was noted that the cement companies used the platform provided by CMA and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted production and supplies in the market.
Further, CCI also found cement companies to be acting in concert in fixing prices of cement.
While imposing penalties, CCI noted “the action of the cement companies and CMA as being not only detrimental to the interests of consumers but also as detrimental to the whole economy, as cement is a critical input in construction and infrastructure industry - and thus vital for the economic development of the country.”
CCI directed cement companies and CMA 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.
CMA has been further directed to disengage and disassociate itself from collecting the wholesale and retail prices through member cement companies or otherwise.
Also, the CMA has been restrained from collecting and circulating the details relating to production and dispatch by cement companies.
