India Cements receives stay on CCI fine

India Cements received a stay order following its appeal of the decision made by the Competition Commission of India (CCI) to impose a INR1.87m fine on it for unfair pricing practices. On 31 August, CCI imposed penalties of around INR67bn on 10 cement companies and the Cement Manufacturers’ Association for cartelisation.

COMPAT imposed a condition that India Cements would have to deposit 10 per cent of the penalty in the registry of the tribunal in the form of six-month fixed deposit within one month from the date of its order. The cement producer said in its filing with the BSE that it has made arrangements to deposit the amount but appealed against the decision. CCI's order came after a complaint was filed by the Builders Association of India against the cement companies and the CMA. The cement companies and the CMA's control on prices, capacity utilisation and production restricted output and supplies for the end consumer, noted the CCI in August and that "cartelisation was detrimental to the interests of consumers and the economy."