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Cement Price Manipulation Probe: Delhi High Court Rejects UltraTech's Appeal, Cements BAI As A Party

The dispute traces back to 2019, when the CCI launched a pan-India suo moto against major cement manufacturers alongside the Cement Manufacturers Association.

Cement Price Manipulation Probe: Delhi High Court Rejects UltraTech's Appeal, Cements BAI As A Party
The dispute traces back to 2019, when the CCI launched a pan-India suo moto against major cement manufacturers alongside the Cement Manufacturers Association.
NDTV Profit
  • Delhi High Court dismissed UltraTech Cement’s appeal to exclude BAI from CCI probe
  • The court upheld BAI’s role as a formal party in the 2019 cement cartel investigation
  • CCI alleges cement makers coordinated to manipulate prices and control supply

The Delhi High Court has rejected UltraTech Cement Ltd's appeal to exclude the Builders Association of India (BAI) from participating in the Competition Commission of India's 2019 antitrust inquiry into price manipulation and cartelisation in the cement sector.

“The appeal is dismissed,” noted a 2-judge bench comprising Chief Justice Devendra Upadhyaya and Justice Tejas Karia. The court upheld the impleadment of the BAI as a formal party in the mega cement cartelisation case.

The dispute traces back to 2019, when the CCI launched a pan-India suo moto against major cement manufacturers alongside the Cement Manufacturers Association. The CCI alleges coordination among manufacturers to artificially control supply and price, with downstream impact to buyers.

In July 2023, the CCI allowed an impleadment application filed by the BAI, which represents more than 20,000 contractors who consume roughly 70% of India's cement. BAI was granted non-confidential access to case records and the Director General's investigation report. UltraTech unsuccessfully challenged this order before a single judge of the Delhi High Court in 2023.

The Single Judge found that the BAI satisfied statutory criteria for inclusion as a party, establishing that industry-wide end-consumers have a vital stake in competition probes. The bench clarified that proprietary commercial data remains shielded within the CCI's strict confidentiality ring, ensuring that only non-confidential filings are shared.

The Division Bench on Tuesday dismissed UltraTech's appeal against this order, cementing the BAI's inclusion in the CCI's investigation of price manipulation by cement manufacturers.

Also Read | Up to 72% Upside In These Cement Stocks: ACC, Ambuja, UltraTech Cement Among PL Capital's 'Buy' Calls

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