In June 2012, 11 cement companies in India were fined Rs.6307 crore by the Competition Commission of India (CCI). The CCI issued the fine after a 2-year investigation into price fixing by the accused companies and the Cement Manufacturers Association (CMA). At the time, the majority of the accused refuted the findings and declared their intent to appeal the decision. The final hearing for that appeal is set for August. However, last week the Competition Appellate Tribunal (COMPAT) ordered ten cement producers to deposit Rs.630 crore (10% of the fine) within the next four weeks:
"... We would chose to grant stay to the penalties, however, with a condition that the appellants (cement makers) deposit 10% of the penalties inflicted (by CCI)," COMPAT stated, adding: "We also make it clear that if the penalties are not so deposited, the appeal shall be treated as dismissed without further reference to the Court.”
The companies include UltraTech Cement, Ambuja Cements and ACC (Holcim Group), Jaiprakash Associates, India Cements, Madras Cements and Lafarge India, among others. The Tribunal has already declared that, ‘prima facie’, it has found nothing wrong with CCI’s findings against the companies. We previously reported that the CMA had called the order ‘a complete miscarriage of justice’ that ‘doesn’t appreciate the role industry associations play in bridging information gaps between sectors and the government’.
Edited from various sources by Katherine Guenioui.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/20052013/compat_requests_deposit_now_39/