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.

On the other hand, these cement companies limited and controlled supplies in the market so as to determine prices through an anti-competitive agreement, which was not only detrimental to the cause of the consumers but also to the whole economy since cement is a crucial input in construction and infrastructure industry vital for economic development of the country, the CCI observed.

CCI has directed these cement manufacturers to deposit the penalty amount within 90 days. They have also been directed to 'cease and desist' from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.

CCI has also asked the Cement Manufacturers Association (CMA) to disengage and disassociate itself from collecting wholesale and retail prices through member cement companies and also from circulating the details on production and dispatches of cement companies to its members.

 CCI passed the order in a case filed by the Builders Association in 2010.