Competition panel imposes Rs6,300-crore fine on 11 cement companies

21 Jun 2012

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The Competition Commission of India (CCI) has imposed a fine of Rs6,307 crore on 11 cement manufacturers for violating the provisions of the Competition Act, 2002, which deals with anticompetitive agreements, including cartelisation.

The CCI passed the order pursuant to investigation carried out by the director general on information filed by the Builders Association of India, an official release said today.

The commission has imposed penalty on 11 cement manufacturers named in the information at 0.5 times of their profit for the year 2009-10 and 2010-11, which works out to around Rs6,000 crore.

CCI imposed penalties on ACC, Ambuja Cements Limited, Ultratech Cements, Grasim Cements (now merged with Ultratech Cements), JK Cements, India Cements, Madras Cements, Century Cements, Binani Cements, Lafarge India and Jaypee Cements.

While imposing the penalty, the commission observed that the cement companies have behaved in a coordinated and parallel manner on price fixing, dispatch and supplies in the market.

The cement companies have not utilised the available capacity so as to reduce prices and improve supplies in times of higher demand.

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