The Competition Commission of India, CCI has imposed a penalty of 397 crore 51 lakh rupees on a cement company. The CCI in its order, issued today, found eleven cement manufacturers including Shree Cement Limited and companies belonging to Cement Manufactures Association, CMA in contravention of the provisions of the Competition Act, 2002. This act deals with anti-competitive agreements including cartels. An official release says that other 10 cement companies have already been penalized by the CCI. The Commission also directed 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 Competition Commission of India has imposed more than six thousand crore rupees as penalty on 11 cement companies for price cartelisation. It has also imposed penalty on the Cement Manufacturers Association. An official release says, the cement manufacturers which have been penalised include ACC, Ambuja Cements Limited, Ultratech Cements, Ultratech Cements, JK Cements, India Cements, Binani Cements and Jaypee Cements. The contravening cement manufacturers have been directed to deposit the penalty amount within 90 days. They have also been 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. While imposing penalty, the Commission has considered the parallel and coordinated behaviour of the cement companies on price, dispatch and supplies in the market. The Commission has found that the cement companies have not utilised the available capacity so as to reduce supplies and raise prices in times of higher demand. The Commission has also observed that the act of the companies in limiting and controlling supplies in the market and determining prices through an anti-competitive agreement is not only detrimental to the cause of the consumers but also to the whole economy as cement is a crucial input in construction and infrastructure industry vital for economic development of the country.