As per media reports, the Competition Commission of India (CCI) has intensified its investigation into alleged cartelisation in the cement industry following a complaint by ONGC. The commission has directed leading companies-UltraTech (now also the promoter of India Cements), Dalmia Bharat, and Shree Digvijay Cements-to submit detailed financial documents.
Executives from these companies have also been reportedly asked to provide personal financial records and formal responses to the findings.
The focus of the probe is on suspected collusion among the companies, potentially facilitated by a middleman, to manipulate tender prices, as per the report by OneIndia. UltraTech and India Cements must submit financial records from FY2015 to FY2019, while Dalmia Bharat and Shree Digvijay must submit audited financials spanning FY2011 to FY2019. Executives are required to share income tax returns and explain any revenue derived from these alleged practices. The CCI has warned that incomplete disclosures could lead to penalties under Section 45 of the Competition Act.
This action apparently comes in the wake of UltraTech’s recent acquisition of a controlling stake in India Cements, adding significance to the investigation.
The CCI on the other hand has a notable track record of tackling unethical corporate behaviour. Past decisions, such as imposing heavy fines on cement firms in 2012 and 2016, penalising Google for dominance abuse in 2022, and acting against bid-rigging in Indian Railways tenders, reflect its regulatory effectiveness.
Unethical business practices like cartelisation are known to harm consumers, reduce innovation, and erode trust in the economy. The CCI’s ongoing crackdown showcases its commitment to safeguarding fair competition and promoting transparent market practices-a vital for sustainable economic growth.