CCI slaps R3,000-cr fine on cement cos for price cartelisation

Written by fe Bureau | New Delhi | Updated: Jun 20 2012, 06:28am hrs
Finding around a dozen cement companies guilty of indulging in price cartalisation, the Competition Commission of India (CCI) is said to have slapped a penalty of R3,000 crore on them. The penalty amounts to 8% of the three years average turnover of these 11 companies, sources said.

The CCI had not put up the order on its website at the time of filing this report. According to agency reports, the CCI found the 11 companies in violation of Section 3 and 4 of the competition laws.

According to sources, the cumulative turnover of these companies is around R37,500 crore. Most of the top cement firms have been indicted by the CCI, sources said. Cement companies declined to comment, saying they have not seen the order.

CCI has been probing the cartelisation charges based on complaints from realtors body, Builders Association of India (BAI), which alleged that the retail prices fixed by cement manufacturers were almost similar.