In 2012, the Competition Commission of India found 11 cement companies and the cement association guilty of cartel behaviour and fined them accordingly. This week, the Competition Appellate Tribunal allowed the appeals against that finding and determined that the Commission must hear the appellants and pass a fresh order within three months. The companies appealing the Rs.6316.59 crore penalty included Ambuja Cements, Binani Cements, Century Textiles, India Cements, JK Cements, Lafarge India, Madras Cements, Ultratech, JP Associates and Shree Cements.
India’s Economic Times called the development a ‘major verdict’. The companies had deposited 10% of the penalty, but will now be able to withdraw this money in anticipation of a fresh hearing.
In the Indian state of Tamil Nadu, which yesterday launched a government-subsidised cement, builders have held a hunger strike to protest cement prices.
India’s Competition Appeallate Tribunal has asked companies accused of price fixing to pay 10% of the penalty in the next month if their appeal is to be heard in August.