Fair trade panel probing cement makers afresh
19 Dec 2015
The Competition Commission of India (CCI) is examining a fresh complaint of alleged unfair business practices made against cement makers, CCI chairman Ashok Chawala said on Friday.
The development comes against the backdrop Compat's quashing the over Rs6,300 crore fine imposed on them by the regulator in a previous case (See: Compat quashes CCI's Rs6,316-cr penalty on cement firms).
Recently, realtors' apex body CREDAI filed a complaint with the CCI against cement manufacturers alleging price cartelisation.
On the sidelines of an event in New Delhi, Chawla said the CCI is looking into a fresh complaint filed against cement companies.
The Confederation of Real Estate Developer's Associations of India (CREDAI), which has about 10,000 members, approached the CCI against the Cement Manufacturers' Association (CMA) in late September.
In October, CREDAI said the association had filed complaint against the CMA as prices have risen sharply despite low demand for cement.
"To control the cost of construction and make home prices work for the common man, CREDAI has moved the CCI against cement manufacturers who have been unduly increasing the cost of cement," CREDAI had said.
Despite low demand, the association had said the prices of cement have jumped by 20-40 per cent in major cities across India in the last couple of months.
In the case of earlier complaint, on 11 December, the Competition Appellate Tribunal set aside Rs6,316.59 crore penalty imposed on 11 cement manufacturers by CCI for cartelisation and directed the fair trade regulator to pass a fresh order in three months.