Cement Manufacturers' Association (CMA) today said it would go through the order of competition watchdog CCI imposing hefty penalty of Rs 6,200 crore on 11 cement firms and then decide about future course of action.
However, Builders Association of India (BAI), on whose complaint CCI began the investigation, were elated and said the decision was a long-pending one. Senior advocate O P Dua represented BAI in the case against the cement makers at CCI.
"We will study the nature and the rationale of the order and then only, we can decide on the future course of action," CMA secretary General N A Viswanathan told PTI.
When contacted, Aditya Birla Group firm Ultratech said it was yet to receive the order and almost an echoing voice could be heard from others, indicted by Competition Commission of India (CCI) for "controlling supplies and determining prices through an anti-competitive agreement".
Sources in the law firm Amarchand Mangaldas, which represented ACC and Ambuja Cements, said it was reviewing the order and in all likelihood, would appeal to the Competition Appellate Tribunal.
The apex realtors' body Confederation of Real Estate Developers' Association of India (Credai) hailed CCI decision and said the judgement justifies their apprehensions that cement and steel companies are engaged into cartelisation.
"We welcome this decision by CCI. We have been saying that the steel and cement companies are forming cartels and artificially hiking the prices. This has affected ultimately the consumers. CCI has given the right judgement. This will discourage the cement makers from forming a cartel in future," Credai President Lalit Kumar Jain said.
Ahluwalia Contracts (India) Managing Director Vikramjeet Ahluwalia said, "It's a good decision. As a builder, we never know what would be the price of cement tomorrow. Cement makers are creating artificial shortages in the market and taking advantage. Its a long-pending decision."
