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Cement majors to move Tribunal against CCI order

Five of the seven cement companies which were fined by the Competition Commission of India (CCI) in January, for alleged bid rigging of a 2012 tender floated by the Haryana government, have decided to take up the matter to the Competition Appellate Tribunal.

 

The companies — Shree Cement, JK Cement, Ambuja Cements, ACC Limited and JK Lakshmi Cement — who have opted to contest the CCI order are of the view that they have a ‘good case for succeeding in the appeal.’ 

 

Other companies such as UltraTech Cement and Jaiprakash Associates are currently reviewing the order and will take a call later.

 

 

According to industry sources, the five companies contesting the CCI order will fight the case individually.

 

The CCI, while imposing a total fine of Rs 205.73 crore on all seven companies, alleged that the cement manufacturers had formed a cartel and quoted considerably higher rates than the existing contract rates.

 

Further, it alleged that these companies, acting in concert, collectively and deliberately quoted bids for substantially lower quantities as compared to the quantities they had been quoting in the past. The CCI has also alleged that the total tendered quantity of 0.4 million tonne (MT) of cement had eventually been divided amongst them, so that each bidder could get the rate contract for the quoted quantity. 

 

According to a document from CCI, the companies had also quoted the rates in such a manner that they all acquire the lowest bidder status for supply of cement in at least some of the destinations.

Source: Business Standerd