Complaint against 11 cement companies alleging cartelization in fixing and increasing cement prices, dismissed

Competition Commission of India (CCI): CCI has rejected a complaint filed against 11 cement companies of Andhra Pradesh alleging that the said manufacturers increased the price of cement per bag by Rs. 75/- within a short span of time. It was averred in the complaint that rise in prices  from Rs. 230- Rs. 250 per bag to Rs. 300 – Rs. 330 per bag had adversely affected the construction activity in the new State besides inconveniencing the general public. It was further alleged that, had the hike been on account of increase in the raw material cost, it would have been increased gradually but, there is sudden spurt in the price within a short period and thereby clearly indicating cartelization. The companies involved in the case were named as Penna Cements, India Cements, Bharathi Cements, Dalmia (Bharat) Cements, Bhavya Cements, Zuari Cements, Ultratech Cements, Jaypee Cements, Ramco Cements, KCP Cements and My Home Cements. After perusing the records, CCI observed that, “no document or other details whatsoever have been filed alongwith the reference by the Informant in support of the allegations. Save and except alleging an increase in price of cement bag by the named cement companies, no other allegation or averment has been laid in the reference wherefrom even a prima facie satisfaction may be recorded about the existence of a cartel.” While holding that, “no case, whatsoever, of contravention of the provisions of Section 3 of the Competition Act, 2002 has been made out”, against the cement companies, CIC dismissed the complaint. (XYZ v. Penna Cements, 2014 CCI 75, decided on November 19, 2014)