CCI Fines Cement Companies Rs 6,320 Crore For Price Fixing
Among the companies that received maximum fines were Ambuja Cements fined Rs 1,160 crore, ACC was fined Rs 1,150 crore, Ultratech Cement Rs 1,180 crore and Jaiprakash Associates Rs 1,320 crore
Photo Credit : Reuters
The Competition Commission of India (CCI) has imposed a Rs 6,320 crore ($944 million) fine on 10 cement companies and a trade body for price fixing, the Ministry of Corporate Affairs said a statement.
The order issued by the anti-trust regulator held the companies and the Cement Manufacturers Association (CMA) responsible for "acting in concert in fixing prices of cement".
The companies and the CMA shared details relating to prices, capacity utilisation, production and dispatch which led to restricted production and supplies in the market hurting consumers and the Indian economy, the order said.
Among the companies that received maximum fines were Ambuja Cements Ltd fined Rs 1,160 crore, ACC Ltd was fined Rs 1,150 crore, Ultratech Cement Rs 1,180 crore and Jaiprakash Associates Ltd Rs 1,320 crore.
CCI said interactions between the trade body and the cement companies were not confined to promoting the interest of the industry.
"Such interactions have been found to have transgressed the limits in sharing of information and extended to discussions on cost, prices, production and capacities...," the CCI order said.
The case was filed by Builders Association of India against the cement companies and CMA alleging collusion to fix prices.