The Competition Commission of India has imposed more than six thousand crore rupees as penalty on 11 cement companies for price cartelisation. It has also imposed penalty on the Cement Manufacturers Association. An official release says, the cement manufacturers which have been penalised include ACC, Ambuja Cements Limited, Ultratech Cements, Ultratech Cements, JK Cements, India Cements, Binani Cements and Jaypee Cements.

The contravening cement manufacturers have been directed to deposit the penalty amount within 90 days. They have also been directed to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.

While imposing penalty, the Commission has considered the parallel and coordinated behaviour of the cement companies on price, dispatch and supplies in the market. The Commission has found that the cement companies have not utilised the available capacity so as to reduce supplies and raise prices in times of higher demand.

The Commission has also observed that the act of the companies in limiting and controlling supplies in the market and determining prices through an anti-competitive agreement is not only detrimental to the cause of the consumers but also to the whole economy as cement is a crucial input in construction and infrastructure industry vital for economic development of the country.