India's Anti-monopoly watchdog CCI (Competition Commission of India ) is believed to have a slapped penalty of nearly Rs. 3,000 crore on 11 mega cement manufacturers, found guilty of being involved in price cartel.
Sources close to the development said that CCI on investigation found that the companies were under reporting production and colluding to form a cartel.
According to one high official of CCI, " Indian major Cement companies, which have been under scrutiny since last one year, had been allegedly inflating prices and decreasing production. The Competition Commission of India has found 11 cement firms guilty of cartelisation. The penalty of 8% of their three year's average turnover will be imposed on them"
The cumulative turnover of these companies is about Rs. 37,500 crore. Many of the top cement companies have been indicted by the CCI.
If implemented, it will be a big negative for cement companies, particularly when the demand is sluggish ahead of monsoon.
CCI was probing the cartelisation charges based on complaints from realtors' body, BAI (Builders Association of India), which alleged that the retail prices fixed by cement manufacturers were almost similar.
The highest penalty prescribed in the Competition Act 2002, is 10% of 3 years' average turnover.
There were allegations of cartelisation against about 40 cement makers. The Indian cement industry comprises nearly 185 large cement plants and above 360 mini cement plants. Large producers, around 40 in number, contribute 97%of the installed capacity, which now stands at around 33 crore tonnes a year.
Sources close to the development said that CCI on investigation found that the companies were under reporting production and colluding to form a cartel.
The cumulative turnover of these companies is about Rs. 37,500 crore. Many of the top cement companies have been indicted by the CCI.
If implemented, it will be a big negative for cement companies, particularly when the demand is sluggish ahead of monsoon.
CCI was probing the cartelisation charges based on complaints from realtors' body, BAI (Builders Association of India), which alleged that the retail prices fixed by cement manufacturers were almost similar.
The highest penalty prescribed in the Competition Act 2002, is 10% of 3 years' average turnover.
There were allegations of cartelisation against about 40 cement makers. The Indian cement industry comprises nearly 185 large cement plants and above 360 mini cement plants. Large producers, around 40 in number, contribute 97%of the installed capacity, which now stands at around 33 crore tonnes a year.
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