The Confederation of Real Estate Developer’s Associations of India (Credai), the apex body of real state developers, on Monday said it has moved the Competition Commission of India...
The Confederation of Real Estate Developer’s Associations of India (Credai), the apex body of real state developers, on Monday said it has moved the Competition Commission of India against cement manufacturers who have been allegedly involved in unduly increasing cement prices.
In its submission to the Commission, the confederation has pointed out that the cost of raw material used in manufacturing cement has come down from January but cement companies have never passed on this benefit to the customers. Instead, they seemed to be working together in controlling supply and prices. Credai has also alleged cement manufacturers have violated CCI’s ‘cease and desist’ order of 2012 which held that cement manufacturers formed a price cartel and were fined nearly Rs 6,000 crore by the regulator.
Credai said it was well known that the real estate sector was under pressure with a consequent decrease in cement demand. Despite the low demand, the price of the commodity jumped by 20-40% in top cities across India in the last couple of months, it stated. “It is unfair that cement manufacturers should indulge in practices that control the price of cement. CCI had warned CMA in the past as well but it is unfortunate that they seem to be continuing with their price and market manipulation,” said Getamber Anand, president, Credai National.
The confederation complained that there seems to be no grounds for supply restriction and the recent price rise given the low demand. It also brought to notice the commission’s order dated June 20, 2012, wherein cement manufacturers were directed to `cease and desist’ from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.