Cement companies to move tribunal against CCI order
22 Jun 2012
Major cement companies, including ACC, Ambuja Cements and India Cements, today said they would move the Competition Appellate Tribunal to challenge the order of Competition Commission of India imposing penalty on them for alleged breach of anti-competition rules.
The CCI yesterday published an order against 11 cement manufacturers, including 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, for acting like a cartel and imposed a penalty of ''0.5 times of the profit for the year 2009-10 and 2010-11.''
The total penalty on the 11 cement companies works out to Rs6,307 crore, based on their profits for the last financial year (2011-12). CCI also imposed a fine of Rs73 lakh on industry body, the Cement Manufacturers Association of India (CMA). (See: Competition panel imposes Rs6,300-crore fine on 11 cement companies)
For ACC, the company said, the amount worked out to Rs1,147.59 crore. The order relates to competition law proceedings initiated in 2010, which aimed at investigating the conduct of several leading cement producers in India.
''ACC furnished all information and clarification requested by the authorities in the context of the investigation. We feel aggrieved by this order and will appeal against it before the Competition Appellate Tribunal,'' Holcim, which controls both ACC and Ambuja Cements, said in a statement.
"ACC and Ambuja Cements contests allegations and findings against them in CCI's order and will pursue all available legal steps to defend their respective position," the two companies said in separate statements.
At the same time, Holcim also warned action against any employee found breaching the group's code of conduct that prohibits anti-competitive practices.
India Cements said there was no basis for passing orders against the company. ''The company is taking necessary action to file an appeal before the relevant appellate authority for withdrawal or cancellation of the order against the company,'' India Cements said in a filing with the Bombay Stock Exchange (BSE).