 "Credai moves CCI against cement makers")
Real estate developers’ association Credai has moved the Competition Commission of India (CCI) against the cement manufacturers that it claims have been unduly increasing the cost of cement.
Credai has also highlighted the violation of CCI’s “cease and desist” order of 2012 by cement manufacturers, according to a statement from the industry body.
In its complaint, Credai has said that the cost of raw material used in manufacturing cement has come down from January 2015 to September 2015, but cement companies have not passed on the benefit to customers. Hinting at a cartel-like operation, it also alleged that cement firms seem to be working together to control supply and prices.
Housing and other real estate sectors account for nearly half the cement demand in India. Despite low demand, the prices of cement have jumped 20-40 per cent in top cities across the country in the past couple of months.
“It is unfair that the cement manufacturers indulge in practices that control the prices of cement. CCI has warned cement manufacturers in the past as well, but it is unfortunate that they seem to be continuing with their price and market manipulation,” Credai National President Getamber Anand said in a statement.
At its annual general meeting last month, Credai’s NCR board had taken a decision to stop procurement of cement from companies like Ultratech, Lafarge and others that unilaterally increased cement prices in the past one month.
In 2012, too, Credai had moved CCI against cement cartels.
