Compat Ordered 11 Cement Manufacturers to Deposit 630 Crore Rupees
The Competition Appellate Tribunal (Compat) on 17 May 2013 ordered 11 cement manufacturers to deposit an amount of 630 crore Rupees.
The Competition Appellate Tribunal (Compat) on 17 May 2013 ordered 11 cement manufacturers to deposit an amount of 630 crore Rupees before it heard manufacturer’s appeal against 6307 crore Rupees fine imposed on them by Competition Commission of India (CCI) in June 2012. Competition Commission of India (CCI) is the competition watchdog for price manipulation as well as cartelization. Compat posted cement manufacturers’ case for final hearing in the month of August 2013.
Compat had ordered the cement manufacturers to deposit a 10 percent amount of total penalty imposed on it by CCI in June 2012. The list of these cement manufacturers include:
• JP Associates
• UltraTech Cement
• Ambuja Cements
• Binani Cement
• India Cements
• Grasim Cements
• Madras Cements
• Century Textiles
• JK Cements
• Indian unit of France's Lafarge SA
All these manufacturers have been ordered to make the payment within one month. Failure of doing so will result in their appeal being dismissed.
The spokesperson for JP Associates explained that all the cement manufacturers were looking for different options, which also includes challenging the decision of Compat in Supreme Court. The matter will also be discussed with the Cement Manufacturers Association of India (CMA).
CCI imposed highest penalty of 1323.6 crore Rupees on the JP Associates. Additionally, the fine of 73 lakh was imposed on CMA.
The penalty was stayed by the Competition Appellate Tribunal, but the desist order as well as the cease order would remain against these manufacturers.