NCLAT rejects the argument of cement producers against a penalty of 6,300 rupees at the ICC for cartelisation

In a setback to 10 major cement producers, the appeal court of the national company today rejected their plea against the penalty of 6,300 rupees imposed by the regulatory body of the fair trade ICC on alleged cartelization in the sector. The appeal court also upheld the amount of the penalty imposed by the Competition Commission of India (ICC), observing that the Fair Trade regulator imposed the minimum fine.

Some cement companies like Ambuja Cement, Ramco, JK Cement and UltraTech have stated that they consult their legal teams and intend to challenge the order in the Supreme Court.

"We find no merit in these appeals, so they are fired," said a group of two NCLAT members led by the president of the court, SJ Mukhopadhaya.

With regard to the penalty of Rs 6,300 crore, the court said: "With respect to the quantum of the penalty order, as we find that the ICC imposed a minimum sentence, no interference whatsoever Is asked against her. "

Placing an order on August 31, CCI imposed a penalty of more than $ 6,300 crore at Rs 10 on cement companies for cartel, along with their lobbying group Cement Manufacturers & # 39; Association.

The manufacturers are: Ambuja Cements, ACC, Jaiprakash Associates, Century Textiles & Industries, Ramco Cements, JK Cement, Cements of India, UltraTech, Nuvoco Vistas Corporation and Binani Cement.

CCI also fined Shree Cement Ltd 397.51 rupees for unfair commercial practices, by way of a separate order.

Commenting on the NCLAT order, Ambuja Cement said: "Although the company has not yet received the order from NCLAT, it believes that it has sufficient grounds for a successful appeal and intends to file it with the Supreme Court. "

JK Cement said: "The company has been legally advised that she has a good argument on the merits and, as a result, the company must appeal to the Supreme Court to challenge the case. disputed order within the period prescribed by law. "

Ramco Cement also said that he proposes to move the Supreme Court against the order NCLAT.

The leading manufacturer of UltraTech cement said: "The detailed order is expected, after review, the Company will take appropriate action, as advised by its lawyers."

The ICC order came after the Builders Association of India alleged anti-competitive practices by the Cement Manufacturers Association (CMA) and 11 cement manufacturing companies.

CCI then investigated the matter and issued an order on June 20, 2012, condemning the cement companies and imposing a fine.

They were attacked before the Competition Appellate Tribunal, which quashed it on December 11, 2015, asking the ICC to make a new order.

Later on August 31, 2016, CCI issued a new order accusing them of violating the 2002 Competition Act by acting in concert to set cement prices and limit and control the production and production of cement. 39, offer in the market.

This situation was again challenged by the cement companies before NCLAT, which now has an appellate jurisdiction over CCI, which upheld the fair trade regulator's decision.

"We noted that the Commission has not only examined the" knowledge market ", but also the" market by region "and the percentage change in prices between 2007 and 2011," added NCLAT. the unprecedented trend for the percentage of price increase in all five regions.