Govt to look into cement cartelisation as MRTPC gives verdict
Government says it would look into cartelisation of cement industry in the wake of anti-monopoly watchdog MRTPC pronouncing 44 manufacturers guilty of unfair trade practices.
By PTI |
NEW DELHI: Government on Thursday said it would look into cartelisation of cement industry in the wake of anti-monopoly watchdog MRTPC pronouncing 44 manufacturers guilty of unfair trade practices.
"Cartelisation affects consumers, we will look into it," Union Minister of Commerce and Industry Kamal Nath said here.
His comments came after MRTPC held major cement manufacturers including L&T Cement, Birla Cement, Grasim and ACC guilty of cartelisation under the aegis of Cement Manufacturers' Association.
Passing a cease and desist order, a three-member MRTPC bench comprising Justice OP Dwivedi, M M K Sardana and D C Gupta directed the companies not to indulge in any such arrangement directly or through CMA.
"In the present case, we have found direct as well as indirect evidence of concert. The existence of a common platform in the form of respondent No 1 (CMA), which frequently reviews the price situation is a strong pointer towards existence of a cartel," the Commission said.
"Admittedly, respondent No 1 has been fixing prices during the control regime. The same apparatus continues even now without any change.
"In this scenario, the simultaneous and frequent rise in prices by the respondents, although within a narrow band, would clearly indicate that the respondents acted in a concert," said MRTPC slamming the CMA.
Reacting to the order, CMA President H M Bangur said, "We will respect court's decision and our future course of action will be decided after going through the order."
"Cartelisation affects consumers, we will look into it," Union Minister of Commerce and Industry Kamal Nath said here.
His comments came after MRTPC held major cement manufacturers including L&T Cement, Birla Cement, Grasim and ACC guilty of cartelisation under the aegis of Cement Manufacturers' Association.
Passing a cease and desist order, a three-member MRTPC bench comprising Justice OP Dwivedi, M M K Sardana and D C Gupta directed the companies not to indulge in any such arrangement directly or through CMA.
"In the present case, we have found direct as well as indirect evidence of concert. The existence of a common platform in the form of respondent No 1 (CMA), which frequently reviews the price situation is a strong pointer towards existence of a cartel," the Commission said.
"Admittedly, respondent No 1 has been fixing prices during the control regime. The same apparatus continues even now without any change.
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"In this scenario, the simultaneous and frequent rise in prices by the respondents, although within a narrow band, would clearly indicate that the respondents acted in a concert," said MRTPC slamming the CMA.
Reacting to the order, CMA President H M Bangur said, "We will respect court's decision and our future course of action will be decided after going through the order."
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