CCI orders UltraTech, Dalmia, major cement dealer to furnish finances in ONGC tender case

CCI published the order on June 26.

The Competition Commission of India (CCI) has asked cement makers UltraTech Cement Ltd, Dalmia Bharat-owned Dalmia Cement (Bharat) Ltd, and Shree Digvijay Cement, as well as cement dealer Sunrise Enterprises' proprietor Umakant Agarwal, to furnish their companies’ finances, as well as tax returns of some management personnel, in a case involving state-owned oil major Oil and Natural Gas Corporation (ONGC).

ONGC had alleged in a complaint to CCI that the cement makers, in coordination with Agarwal, colluded to fix bids in tenders floated by the oil company. The original complaint was filed by ONGC against the three cement makers in 2020. After its investigation, CCI also ordered Agarwal to be arrayed as a party in the matter.

CCI published the order on June 26. The antitrust regulator gave the firm eight weeks to respond to the order. CCI ordered Shri Digvijay and Dalmia to furnish their balance sheets, and profit and loss and expenditure accounts from FY11 to FY19.

It also ordered UltraTech, as well as its now-subsidiary India Cements, to submit its balance sheets and similar profit and loss and expenditure statements. The firms were also asked to furnish certificates and affidavits from their statutory auditors regarding its turnover from cement sales during the period of the alleged contravention of Section 3(3)(2) of the Competition Act, which deals with tender rigging.

Other than the companies, CCI also identified multiple key management personnel of the companies, as well as Agarwal, to furnish income tax returns for the corresponding period of the investigation of their respective companies.