The Competition Commission of India (CCI) has slapped a penalty of ~Rs 63bn on 11 cement companies, ruling them guilty of forming a cartel on prices.
The penalty accounts for 50% of their FY10 and FY11 profits. The period of investigation for the 11 companies ranges between May 20, 2009 and March 31, 2011.
Reports stated that the 11 companies that have been penalised include Ambuja Cements, ACC, Ultratech Cement, Madras Cements, India Cement, JP Cement, JK Cement, Century Cement and Binani Cement.
While imposing penalty, the CCI has considered the parallel and coordinated behaviour of cement companies on price, dispatch and supplies in the market, added reports.
Cement manufacturers should deposit penalty amount within 90 days.
In 2007-08, the realtors' body had alleged that the retail prices fixed by 11 members of cement manufacturers association (CMA) were almost similar.
The investigation was first handed to the Serious Fraud Investigation Office (SFIO) and later to CCI.
The competition watchdog has also fined the Cement Manufacturers' Association (CMA).