Competition Commission of India (CCI) vs Cement Cartel

3. • Objective:
• to eliminate practices having adverse affect on competition,
• promote and sustain competition, protect the interest of consumers, ensure
freedom of trade in markets of India.
• Ensure fair and healthy competition in economic activities
• Composition: 1 Chairperson and 6 members

4. An association of
manufacturers or suppliers
with the purpose of
maintaining prices at a high
level and restricting
competition.

5. • India is the second largest producer of
cement in the world, only after China.
• The cement industry is a vital part of the
Indian economy, employing millions of
people directly or indirectly.
•The Competition Commission of India (“CCI”)
has recently passed orders adjudicating
allegations of anti-competitive agreements
and abuse of dominance amongst the cement
manufacturers under the Competition Act,
2002 (the “Act”) and imposed a penalty of
more than INR 60 billion (USD 1.1 billion).

6. •Monopolies and Restrictive
Trade Practices Commission
(MRTPC)
•Builders Association of
India(BAI)

7. • 1. Shree Cement Limited
• 2. Cement Manufacturers' Association
• 3. J. K. Cement Ltd.
• 4. BinaniCement Limited
• 5. Lafarge India Private Limited
• 6. JaiprakashAssociates Ltd.
• 7. UltraTech Cement Ltd.
• 8.The India Cements Ltd.
• 9. Ambuja Cements Limited (formerly, Gujarat Ambuja Cement Limited)
• 10. ACC Limited (formerly, Associated Cement Companies Limited )
• 11. CenturyTextiles and Industries Limited
• 12.The Ramco Cements Limited (formerly, Madras Cement Ltd.)

8. 1) Price Increased without corresponding increase in the
limestone price
royalty
excise duty
sales tax
railway freight.
2)Under utilization of installed capacity
3) Choking up of supply in the market, thereby raising the sale prices.
4) Creation of artificial scarcity of supply

9. The CCI found the case fit for imposition
of penalty to the tune of Rs6,700 crore
on 11 cement firms and the Cement
Manufacturers Association (CMA) on
the following proven fact/Evidences:-
Indulging in cartelization by acting in
concert, fixing cement prices, and
limiting and controlling the production
and supply in the market.

10. • Shree Cement Ltd, ACC Ltd , Jaiprakash Associates ,
CMA
• Have made an appeal to Competition AppellateTribunal
(COMPAT) on the grounds of :-
I. violation of principles of natural justice.
II. unfair hearing,
III. pre-determined mindset.
COMPAT has stayed the order of CCI

11. •Import-Export
•Aviation Industry
•Oil Companies
•Transport
•Telecom Industries