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The National Company Law Appellate Tribunal (NCLAT) has upheld the Rs 6,300-crore penalty that Competition Commission of India (CCI) had imposed on 11 cement companies earlier.
The tribunal said that it took the cement companies’ pleas into account but found no merit in them.
The companies, including a cement manufacturers’ association, have stated that they would challenge the decisions, taken by both NCLAT and the CCI, in the Supreme Court.
The fine was imposed by the CCI in June 2012 for reportedly violating provisions of the Competition Act 2002, and was stayed by the Competition Appellate Tribunal (compat) in 2013. Compat additionally asked the companies to deposit 10 percent of the penalty until a decision on their appeal is taken.
Some companies with the biggest fine amounts are — Jaiprakash Cement with Rs 1,323 crore, UltraTech and Grasim Cements together with Rs 1,175 crore, Ambuja Cements with Rs 1,163 crore and ACC Rs with 1,148 crore. Other companies are Lafarge India, Century, Binani, Ramco, India Cements and JK Cements.
Following the announcement, shares of the cement majors fell by 14 percent as investors reacted. Analysts expect that these penalties will further impact the real estate sector as damages could run into thousands, or even crores.
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