The Competition Commission of India on Thursday fined 11 cement companies Rs 6,000 crore for cartelisation in a case dating back to 2007-2008.
The companies have been fined 50 per cent of their turnover for 2009-10 and 2010-11.
CCI has also fined the Cement Manufacturers' Association.
The cumulative turnover of these companies is around Rs 37,500 crore. They will have to deposity the penalty amounts within 90 days, CCI said.
UltraTech, Ambuja Cements, ACC, India Cements, Binani Cement, JK Cement, Madras Cement, LaFarge and Jaypee Cement are among the companies have been fined for their role in creating and running a cement pricing cartel.
"We have not indulged in any cartelisation. We will approach the Competition Appellate Tribunal and challenge the order," said O P Puranmalka, whole-time Director of UltraTech and head of the cement business.
At least 39 companies were investigated for alleged cartelisation in the case going back to 2007-08, in which the cement companies allegedly decreased production together.
The case goes back to 2007-08 when realtors' body Builders Association of India (BAI) had alleged that the retail prices fixed by 11 members of cement manufacturers association (CMA) were almost similar. The investigation was first handed to the Serious Fraud Investigation Office (SFIO) and later to CCI.
The highest penalty prescribed in the Competition Act 2002, is 10 per cent of three years' average turnover.
Company Penalty (Rs/Crore) FY13 (Estimated Rs/cr) Impact
ACC : 1222.63 1293.5 cr 95%
Ambuja : 1245.5 1574 78%
India Cement : 211.45 332.3 63%
Ultratech : 1248 2606 47%
Madras Cement: 282.3 No Estimate -
(With inputs from PTI)
The companies have been fined 50 per cent of their turnover for 2009-10 and 2010-11.
CCI has also fined the Cement Manufacturers' Association.
The cumulative turnover of these companies is around Rs 37,500 crore. They will have to deposity the penalty amounts within 90 days, CCI said.
UltraTech, Ambuja Cements, ACC, India Cements, Binani Cement, JK Cement, Madras Cement, LaFarge and Jaypee Cement are among the companies have been fined for their role in creating and running a cement pricing cartel.
"We have not indulged in any cartelisation. We will approach the Competition Appellate Tribunal and challenge the order," said O P Puranmalka, whole-time Director of UltraTech and head of the cement business.
At least 39 companies were investigated for alleged cartelisation in the case going back to 2007-08, in which the cement companies allegedly decreased production together.
The case goes back to 2007-08 when realtors' body Builders Association of India (BAI) had alleged that the retail prices fixed by 11 members of cement manufacturers association (CMA) were almost similar. The investigation was first handed to the Serious Fraud Investigation Office (SFIO) and later to CCI.
The highest penalty prescribed in the Competition Act 2002, is 10 per cent of three years' average turnover.
Company Penalty (Rs/Crore) FY13 (Estimated Rs/cr) Impact
ACC : 1222.63 1293.5 cr 95%
Ambuja : 1245.5 1574 78%
India Cement : 211.45 332.3 63%
Ultratech : 1248 2606 47%
Madras Cement: 282.3 No Estimate -
(With inputs from PTI)
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