Press Trust of India |
Mumbai
June 24, 2012
Last Updated at 14:26 IST
Builders urge CCI to review fine quantum on cement firms
Builders' association also seeks enquiry into losses incurred by contractors due to profiteering by cement manufacturers
Welcoming CCI's decision to impose Rs 6,307-crore penalty on 11 cement companies, the Builders' Association of India has asked the competition watchdog to review the quantum of penalty.
BAI has urged the CCI to "review the quantum of penalty and also to conduct an enquiry into the losses incurred by contractors due to such profiteering by cement manufacturers and consider reimbursing the losses to the contractors".
DL Desai, trustee of BAI, said they had urged CCI to impose a fixed percentage of the penalty as a deposit with the CCI in case the cement manufacturers approach the 'Appellate Authority'.
Last week, the Competition Commission of India (CCI) had slapped a Rs 6,307-crore penalty on 11 cement companies for forming a cartel.
The period of investigation for the 11 companies ranges between May 20, 2009 and March 31, 2011. It has concluded that cement makers have controlled the supply through under- utilisation of capacity.
The CCI found various discrepancies in the working of the cement companies, which included deliberate under-utilisation of production capacity to create scarcity in the market and hence lead to an artificial inflation of prices.
"We are happy that CCI has taken action to penalise the cement companies, as it would give a boost to the construction industry leading to the revival of our economy, which is currently going through a difficult phase," BAI Secretary Anand Gupta said.
"The construction industry is a major driver of Indian economy and any unfair practices as indulged in by the cement companies have adverse impact not only on this industry but the overall economy," he added.
