NCLAT dismisses cement-makers' plea against Rs 6,300 cr CCI penalty for cartelisation

The National Company Law Appellate Tribunal (NCLAT) today dismissed cement manufacturers' plea challenging the order of fair trade regulator CCI to impose a penalty of Rs 6,300 (rpt) 6,300 crore for alleged cartelisation.

The National Company Law Appellate Tribunal (NCLAT) today dismissed cement manufacturers' plea challenging the order of fair trade regulator CCI to impose a penalty of Rs 6,300 (rpt) 6,300 crore for alleged cartelization.

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya dismissed a batch of petitions by 10 (rpt) 10 cement makers.

"The appeals are dismissed," said the NCLAT, which now is an appellate authority over the Competition Commission of India (CCI).

In August 2016, CCI had slapped approximately Rs 6,700 crore penalty on 11 cement firms including UltraTech, ACC, Ambuja, Ramco and JK Cement as well as the industry body Cement Manufacturers' Association (CMA) for indulging in cartelization.

This was challenged by the cement makers before the Competition Appellate Tribunal, which had in November 2016 stayed the CCI's direction to pay 10 percent of the penalty within a month of the order.

In the August 2016 order, apart from penalizing the CMA, the CCI had directed all the firms 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.

The CCI had imposed the highest penalty of Rs 1,175.49 crore on Aditya Birla group firm UltraTech.

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