SC directs cement cos to deposit 10% of the penalty amount

The Supreme Court (SC) has directed cement companies to deposit 10 percent of the penalty amount imposed by trade watchdog, the Competition Commission of India (CCI) on cartelization charges last year.

Read This: Setback for cement cos as COMPAT lifts stay on CCI fine

Cement companies had taken up the matter with the Competition Appellate Tribunal (COMPAT) and the apex court has upheld the authorities' interim order of depositing 10 percent of the penalty amount by June 24.

Around eleven companies including UltraTech Cement, ACC Ltd and Madras Cements have been accused of carterlisation charges.

The SC has also said that CCI penalty does not benefit consumer and cement companies may be directed sell cement at particular rate. However, cement companies are free to seek rectification of penalty amount.

The penalty amount will vary from company to company,depending on the amount of fine that was originally imposed by the CCI on each of them.

For instance, in case of Jaiprakash Associates  which faces the maximum brunt of the fine by the CCI, will have to pay out in the range of about Rs 130 crore. Companies like ACC Ltd  will now have to shell out around Rs 115 crore and Ambuja Cements  will deposit Rs 117 crore.

Meanwhile, the CCI had investigated 39 cement companies and found 11 firms guilty of forming a cartel. The CCI had acted on a complaint filed  by the Builders Association of India (BAI), accusing companies of fixing higher price for the commodity.