COMPAT begins hearings on cement cos plea against CCI fine
The Competition Appellate Tribunal started hearings on the plea of 11 cement companies seeking stay on Rs 6,307 crore penalty imposed by fair trade regulator CCI on the grounds of cartelisation.
December 07, 2012 / 09:57 IST
The Competition Appellate Tribunal started hearings on the plea of 11 cement companies seeking stay on Rs 6,307 crore penalty imposed by fair trade regulator CCI on the grounds of cartelisation. After hearing day long arguments, a three member COMPAT bench - headed by its Chairman Justice VS Sirpurkar - adjourned the matter to January 29. The tribunal said its order of September 13, wherein the CCI was asked not to take any coercive action, would continue till then.
Also Read:Be more prompt in deciding cases: Par panel to CCICCI rejects Chennai association's complaint against DLFExpects demand for cement to grow by 8% in FY13: Kotak SecCOMPAT has asked cement firms to fix the common issues against the CCI's order between them, as they would be discussed first. Separate aspects would be discussed later. Lafarge India, subsidiary of French cement major argued. Senior advocate Gopal Subramaniam was representing Lafarge and questioned the manner in which CCI had passed the orders. It was COMPAT's first hearing after the cement firms filed their amended petitions after CCI served them separate copies of its order providing them with complete details on production, pricing, dispatches and sales etc.On October 11, 2012 COMPAT had directed CCI to give fresh copies of its order levying penalties on 11 cement companies for cartelisation as in its earlier CCI had not disclosed various facts about matters like production, dispatches and pricing. The companies, which include UltraTech and ACC, were also asked to file their amended petitions before the tribunal after getting the fresh order.On June 21, CCI had slapped Rs 6,307 crore penalty on 11 cement makers. The CMA was also fined Rs 73 lakh. The cement companies charged with cartelisation also include Lafarge India, India Cement, JP Associates, Binani Cement, Ambuja Cement, Madras Cement and JK Cement. "The act and conduct of the cement companies establish that they are a cartel. The Commission holds that the cement companies acting together have limited, controlled and also attempted to control the production and price in the market in India," CCI had said in its 258-page order.CCI had found "cement manufacturers in violation of the provisions of the Competition Act, 2002 which deals with anti-competitive agreements including cartels". The order was passed following probe by its Director General (Investigation) on a complaint filed by Builders Association, which has hailed the order saying "it was long-pending and the penalty could have been higher". Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
