CCI probing alleged cartelisation in pharma, telecom sectors

In June, the anti-competition regulator had slapped a hefty penalty of about Rs 6,200 crore on 11 leading cement companies

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 2:10 AM IST

The Competition Commission (CCI) is investigating alleged cartelisation in various sectors such as pharmaceuticals, telecom and milk distribution, the government said today.

CCI keeps gathering information on issues related to cartelisation and if prima facie case is found then it takes up the issue for further investigation, Minister of State for Corporate Affairs R P N Singh informed the Parliament.

"Some sectors recently have been taken up by the Commission in respect to alleged cartelisation related to real estate, pharmaceuticals, civil aviation, telecom, tyre manufacturing, cement, milk distribution, onion and asbestos," Singh said in a written reply to the Rajya Sabha.

CCI is mandated to look into the cartelisation by enterprises, which is anti-competitive activity having appreciable adverse effect on competition that could adversely affect prices, the Minister said.

He noted further that data on price rise is not maintained by the CCI.

According to the Minister, parties involved in cartelisation activities are dealth with severely by the Commission as per provisions in the Competition Act 2002.

In June, the anti-competition regulator had slapped a hefty penalty of about Rs 6,200 crore on 11 leading cement companies including ACC, Ambuja Cement, Ultratech and Jaypee Cement for price cartelisation.

The other companies found guilty were Grasim Cement now merged with Ultratech Cement, Lafarge India, JK Cement, India Cements, Madras Cement, Century Cement and Binani Cement.

The industry body Cement Manufacturers Association (CMA) was also fined.

The regulator was looking into 39 cases and 26 other cases were under investigation with the Commission's Director General as on June 30, 2012.

Majority of them were related to the infrastructure sector.

There were also cases related to banking and financial services, film/entertainment/TV, information technology/ telecom, medical/pharmaceuticals, civil aviation, petroleum /gas and automobiles, among others.

The pending cases are mostly related to anti-competitive agreements and abuse of dominant market position.

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First Published: Sep 03 2012 | 2:16 PM IST

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