CCI levies fine on 10 paper manufacturers, association

By: |
November 18, 2021 5:56 PM

The firms are Bindals Papers Mills, K.R. Pulp and Papers, Khanna Paper Mills, Katyayini Paper Mills, Kuantum Papers, Madhya Bharat Papers, Naini Paper, Ruchira Papers and Shreyans Industries.

The regulator also directed the paper manufacturers, the association, and their respective officials to cease and desist in the future from indulging in the anti-competitive conduct.The regulator also directed the paper manufacturers, the association, and their respective officials to cease and desist in the future from indulging in the anti-competitive conduct.

The Competition Commission of India (CCI) on Thursday said it has levied a fine of Rs 5 lakh each on 10 paper manufacturers found guilty of cartelisation and a fine of Rs 2.5 lakh on an association.

The association — the Indian Agro and Recycled Paper Mills Association — has been penalised for providing its platform for anti-competitive activities.
The firms are Bindals Papers Mills, K.R. Pulp and Papers, Khanna Paper Mills, Katyayini Paper Mills, Kuantum Papers, Madhya Bharat Papers, Naini Paper, Ruchira Papers and Shreyans Industries.

The regulator also directed the paper manufacturers, the association, and their respective officials to cease and desist in the future from indulging in the anti-competitive conduct.

The regulator passed an order on Wednesday against the companies manufacturing paper from agricultural waste and recycled wastepaper as well as the association, which were found to have contravened the provisions of Section 3 of the Competition Act, 2002.

Section 3 of the Act pertains to anti-competitive agreements.

CCI found that these companies and the association, which provided its platform, to have indulged in cartelisation in fixing the prices of writing and printing paper.

The case was initiated suo motu by the Commission on the basis of certain material found during the ongoing investigations of two other cases.
Investigation arm of CCI, the director general, noted that the period of cartel was between September 2012 and March 2013.

The regulator imposed symbolic fine on the firms considering that during the pandemic, most businesses moved to the virtual mode, thereby reducing the need for paper and affecting the paper business, according to a statement.

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