Coal news and updates

Cement makers set to challenge CCI order

January 01: The 11 cement companies, which were asked to pay penalty by Competition Commission of India (CCI) vide its order issued in June 2012, are believed to be preparing to challenge the order in appropriate court, an official of a cement company said.

“The companies which had been asked to pay the penalty in the first round are believed to have paid 10% of the penalty amount and are now preparing to challenge the CCI order,” the official said.

He said that as per rule, the order of CCI can be challenged only after payment of 10% of the penalty amount.

Meanwhile, the companies, which had been asked to pay penalty by CCI in the second order issued a few days after the first order, have already replied to CCI putting their point of view.

“If CCI is not satisfied with the reply, then they too will pay the 10% of the penalty and then challenge the order in appropriate court,” the official added.

“One company has replied to CCI stating that it had continuously increased its production in the last 10 years and put in about 5-6 new plants in last 7 years. It has also provided the details of their actual production during the last 10 years and the number of plants that it had set up. If it has continuously increased production year-on-year, how can it be said that it was part of any cartelisation,” the official said.