The Competition Commission of India (CCI) has imposed penalties on 10 cement companies and their umbrella association – Cement Manufacturers Association (CMA) for cartelisation. Acting on a complaint filed by Builders Association of India against the cement companies and the CMA, alleging contravention of certain provisions of the Competition Act 2002, the CCI ruled that it was detrimental to the interests of consumers and the economy as cement is a critical input in construction and infrastructure industry.
In its order, the CCI noted the cement companies used the platform provided by the CMA and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted output and supplies.
The CCI has levied penalties of Rs.1,147.59 crore on ACC, Rs.1,163.91 crore on ACL, Rs.167.32 crore (Binani), Rs.274 crore (Century), Rs.187.48 crore (India Cements), Rs.128.54 crore (JK Cements), Rs.490 crore (Lafarge), Rs.258.63 crore (Ramco), Rs.1,175.49 crore (UltraTech) and Rs.1,323.60 crore (Jaiprakash Associates).
