CCI Probe Finds Tata Steel, JSW Steel, SAIL Colluded On Fixing Prices: Report
An investigation by the CCI has found 27 firms in violation of norms and also held 56 top executives liable for price collusion.
India's top steelmakers including private giants Tata Steel Ltd. and JSW Steel Ltd. and state-owned Steel Authority of India Ltd. breached competition law by colluding on prices, Reuters reported on Tuesday.
An investigation by the Competition Commission of India has found 27 firms in violation of norms and also held 56 top executives, including JSW Managing Director Sajjan Jindal, Tata Steel CEO TV Narendran and four former SAIL chairpersons, liable for price collusion over varying periods of time between 2015 and 2023. The order is dated Oct. 6.
The companies are yet to announce any statement on the news report. Shares of SAIL and JSW Steel traded lower, while Tata Steel managed to recover losses.
Stock Movement
Shares of SAIL and JSW Steel traded lower, while Tata Steel managed to recover losses.
The CCI investigation reportedly started in 2021 after a group of builders under the Coimbatore Corporation Contractors Welfare Association alleged in a criminal case brought to Madras High Court that nine companies were collectively restricting the supply of steel and increasing prices.
Reuters reported in 2022 the watchdog raided some small steel companies as part of an investigation into the industry.
The news agency reported the CCI probe was later expanded to as many as 31 companies and industry groups, as well as dozens of executives. Under antitrust rules, details of cases related to cartel-like activity are not made public before they have concluded.
The CCI investigation has "found the conduct of the parties to be in contravention" of Indian antitrust law and "certain individuals have also been held liable," the order stated.
The findings will be reviewed by top officials and companies and executives will also have the opportunity to submit any objections or comments in a process that is likely to take several months given the scale of the investigation. A final order will be made public.
The CCI has the power to impose penalties on steel companies of up to three times their profit or 10% of turnover, whichever is higher, for each year of wrongdoing. Individual executives can also be fined.
