The National Company Law Appellate Tribunal today upheld the Rs 6,300-crore fine imposed on a group of cement companies by the Competition Commission of India for cartelisation.
The tribunal said it finds no merit in the plea filed by the cement companies challenging the antitrust regulator's decision to penalise the manufacturers for cartelisation, Bloomberg reported.
In August 2016, the CCI ruled that 10 cement companies used the platform provided by the Cement Manufacturers Association and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted production and supplies in the market. It also imposed the penalty.
Cementmakers, including Jaiprakash Associates Ltd., ACC Ltd., and Ambuja Cement Ltd., challenged it in the Competition Appellate Tribunal. The Competition Appellate Tribunal was last year merged with NCLAT, making it the appellate authority for hearing appeals against the orders passed by the CCI.
The CCI has also imposed a penalty of Rs. 397.51 crore upon Shree Cement Ltd. via a separate order. Shares of the cement companies fell with Orient Cement Ltd. falling as much as 4.46 percent and India Cements Ltd. falling as much as 3.67 percent.
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