In a crackdown on cartelisation of cement manufacturers, Competition Commission of India’s director general has conducted a detailed investigation on over two dozen companies, including leading players such as ACC, Ambuja Cement and UltraTech.
A report submitted to the CCI chairman has held most of the companies guilty of cutting production to raise cement price. CCI is now seeking a response from these companies on the DG report.
CCI chairman HC Gupta said that the director general investigated the matter for the past six to eight months, and that a detailed report is ready. “We are sending letters to the companies in next 10 days, in which we will attach the report submitted by the DG, and seek responses from these companies,” Gupta told Financial Chronicle. The CCI had sent letters to all these companies, but withdrew them, citing some errors. The companies will be given three to four weeks time to submit their responses or explain their stand to the commission, Gupta said. He declined to give further details on the report as it is confidential.
Another senior official from CCI confirmed that at least 25 cement companies were found guilty of cartelization for the four years under assessment between 2007 and 2011. “ACC, UltraTech, JP Associates, Ambuja, Lafarge and many other companies have been found guilty under Section 3 of the Competition Act, and were named in the report,” the official said. Section 3 of the Act refers to cartel and anti competitive acts.
He said the investigation was initiated on the basis of two complaints ¬ one filed by the Builders’ Association of India and the other, transferred from Monopolies and Restrictive Trade Practices Commission (MRTPC).
