Competition Commission of India has delayed its order on alleged cartelisation of cement companies by a day, reported CNBC-TV18.
CCI is redrafting certain portions of the final order which seeks to impose a penalty on eleven cement companies for inflating cement prices by forming a cartel. The cement companies, reportedly decreased production to inflate prices, which works against the interest of consumers.
UltraTech, Ambuja Cements, ACC, India Cements, Madras Cement, Jaypee Cement are among the companies found guilty, sources said. However, those found guilty have the option to challenge the order in the appellate tribunal.
The penalty is likely to be in the range of 8-10 percent of past three year’s average turnover and may amount to Rs 3,000 crore.
Select cement stocks have reversed their intial losses. While Ultatech and Madras Cement are down -1.2 percent -0.95 percent,respectively, Ambjua (2.5 percent), ACC (3.8 percent) traded higher.
Stocks had fallen triggered by reports the Competition Commission of India (CCI) has slapped penalty of about Rs 3000 crore on 11 big cement manufacturers which were found guilty of being involved in price cartel.