Cement companies that were slapped a fine of Rs 6,307 crore by the Competition Commission of India may face more problems with an old case filed against them with the erstwhile monopoly watchdog MRTPC coming up for decision soon before the CCI.
An indication to this effect was given by CCI in its order imposing a fine of Rs 6,307 crore on 11 cement companies for arbitrary price fixing under the Competition Act.
CCI had said that "decision as regards involvement of the parties in anti-competitive agreement and the period of contravention in the instant case is limited to this case only and is independent of any other information which may be filed subsequently and also independent of decision in case no 52 of 2006 pending before the ommission".
Case No-52 of 2006 pertains to an old matter relating to trade practices, which was transferred to the CCI after dissolution of the Monopolies and Restrictive Trade Practices Commission (MRTPC) in October 2009.
"The complaint was filed against 44 cement manufacturers with the MRTPC in 2006, and was later transferred to the CCI," a senior official said.
On Thursday, in a big blow to top cement firms, CCI had slapped a hefty Rs 6,307 crore penalty on 11 companies, including ACC, Ambuja Cements, Ultratech and Jaiprakash Associates for price cartelization.
The fine was fixed at 50 per cent of their profit during 2009-10 and 2010-11. They have been directed to deposit the penalty within 90 days.
The order was passed following an almost two-year-old probe by director general (investigation) on a complaint filed by Builders Association in 2010. The companies have decided to go in for appeal before the Competition Appellate Tribunal.
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