COMPAT orders cement companies to deposit Rs 630 crore
The Competition Appellate Tribunal (COMPAT) has directed 11 cement manufacturing firms, including UltraTech, Ambuja and ACC, to deposit Rs 630 crore as it hears their appeal against a record amount of penalty imposed by competition watchdog CCI in 2012.
What is the case?
In 2012, the Competition Commission of India (CCI) had slapped a mammoth penalty of Rs 6,307 crore on cement manufacturing companies including UltraTech Cement, Ambuja Cements and ACC, India Cements, Madras Cements and the Indian unit of France’s Lafarge SA as it found these companies guilty of making forming cartel through which they had limited, controlled and also attempted to control the production and price in the market in India.
These companies have challenged the decision in COMPAT. COMPAT has ordered the companies to deposit 10% of the penalty slapped by the CCI within a month time if they wished to put a stay on the penalty. Although the tribunal stayed the penalty, but the cease and desist order would continue against them as the tribunal “prima-facie” found no wrong in CCI’s findings against them.
Categories: Business & Economy Current Affairs 2017