CCI slaps Rs 206 cr fine on seven cement companies

Competition Commission today imposed nearly Rs 206 crore penalty on seven cement companies for bid-rigging and cartelisation.
Shree Cement, UltraTech Cement, Jaiprakash Associates, J K Cement, Ambuja Cements, ACC and J K Lakshmi Cement have been penalised for violating competition norms with regard to a tender floated by a Haryana agency back in 2012.
Among others, SMS and calls made among the officials of the cement officials during the particular period also confirmed collusion, according to the regulator.
This is not the first time that cement companies have come in the crosshairs of Competition Commission of India (CCI). Earlier too, the watchdog had imposed fine on cement firms for anti-competitive business practices.

In a 120-page order, CCI said the seven companies violated competition norms and also directed them "to cease and desist" from such activities.
After careful consideration, the regulator decided to slap penalties on the companies that is equivalent to 0.3 per cent of each of their average turnover for three financial years.

The total fine amounts to around Rs 206 crore.
UltraTech has been directed to pay a fine of Rs 68.30 crore while that on Jaiprakash Associates is Rs 38.02 crore. The fine on others are -- Shree Cement (Rs 18.44 crore), J K Cement (Rs 9.26 crore), Ambuja Cement (Rs 29.84 crore), ACC (Rs 35.32 crore) and J K Lakshmi Cement (Rs 6.55 crore).

The order has come on a complaint filed by Director, Supplies and Disposals, Haryana -- a procurement agency. It was alleged that the cement makers formed a cartel and quoted higher bid prices for a tender floated in 2012.
CCI had ordered a detailed probe into the matter in 2014.