|CCI issues order against cement manufacturers, imposes penalty of Rs.397.51 crores on M/s Shree Cement Limited|
|The Competition Commission of India passed its final order today in a restrictive trade practice inquiry against cement manufacturers and their trade association viz. Cement Manufacturers Association (CMA). The Commission in its order issued today found eleven cement manufacturers including M/s Shree Cement Limited and CMA in contravention of the provisions of the Competition Act, 2002 which deal with anti-competitive agreements including cartels. As the cement companies(except M/s Shree Cement Limited) were already found to be in cartel in Case No. 29 of 2010 and penalized by the Commission vide its order dated 20.06.2012, the Commission decided not to order remedies including imposition of penalty on such companies again for the same period of contravention.|
The inquiry was based on a case received on transfer from the Office of the Director General (Investigation & Registration) of the erstwhile Monopolies and Restrictive Trade Practices Commission under section 66(6) of the Competition Act, 2002. The MRTP Commission had initiated the investigations on the basis of press reports published in a business daily as well as on a letter of Builders Association of India.
The Commission directed M/s Shree Cement Limited 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. The Commission has also imposed a penalty on M/s Shree Cement Ltd. at the rate of 0.5 times of its profits for the years 2009-10 and 2010-11 aggregating to Rs.397.51 corers.
The order of Commission has been passed in RTPE No.52 of 2006 and a copy of the order has been uploaded on the website of CCI at www.cci.gov.in
Monday, July 30, 2012
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