The Competition Commission of India (CCI) has imposed a penalty of over Rs 6,000 crore on 11 cement manufacturing companies for violating the provisions of Competition Act of 2002.
“While imposing the penalty, the Commission has considered the parallel and coordinated behaviour of cement companies on price, dispatch and supplies in the market. The Commission has found that the companies have not utilised the available capacity so as to reduce supplies and raise prices in times of higher demand,” a government statement said.
The Commission observed that the cement companies formed a cartel in limiting and controlling the supplies in the market and determined the price of cement through an anti-competitive agreement which was detrimental not only for the consumers but also to the economy “since cement is a crucial input in construction and infrastructure industry vital for economic development of the country”.
The Cement Manufacturers Association has been asked to disassociate itself from collecting wholesale and retail prices through the member cement companies and from circulating the details on production and dispatches of cement companies to its members.
