Steel price increased due to collusion
Steel prices in the country were being increased not due to market fluctuations, but allegedly due to mutual ‘setting’ of some big companies. In a major investigation by the Competition Commission of India (CCI), the country’s leading steel companies Tata Steel, JSW Steel and government company SAIL have been found guilty. According to a Reuters report, it is alleged that these companies colluded with each other to fix steel prices.
Collusion of senior officials
This matter is not limited only to companies, but the role of officials holding top positions has also come to light in this. According to the report of news agency Reuters, CCI has found in its investigation that there was collusion regarding prices at different times between 2015 and 2023. 56 senior officers have come under the scanner of this investigation, who have been held responsible for this unethical business.
The surprising thing is that these names include the biggest faces of the steel industry. The names of JSW Steel Managing Director Sajjan Jindal, Tata Steel CEO T.V. Narendran and four former chairpersons of government company SAIL are also in this list. In the CCI order issued on October 6, which has not yet been made public, questions have been raised on the role of these officers. JSW has refused to comment on this entire matter, while no response has been received from Tata and SAIL yet.
Investigation started from a complaint
The layers of this entire matter started unraveling when a builders association of Tamil Nadu got upset and approached the court. His allegation was that the companies were deliberately stopping the supply so that there could be a shortage in the market and the prices could be increased. After this CCI started investigation, which has now become the biggest investigation in India’s steel sector. Initially raids were also conducted on some companies.
According to reports, the investigating officers have found some evidence which can increase the problems of the companies. Citing an internal document dated July 2025, it has been said that officials have found WhatsApp chats between ‘regional industry groups’. These chats clearly indicate how discussions took place regarding limiting production and fixing prices. Altogether 31 companies and several industry bodies are now under investigation.
stock market earthquake
As soon as this news came out, there was a stir in the stock market. There is an atmosphere of fear among investors that if these allegations are completely proved, then huge fines may be imposed on the companies. As soon as the news came, there was a sharp fall in the shares of JSW Steel, Tata Steel and SAIL, due to which the Nifty Metal Index also came into the red.
As per the rules, CCI has very strict powers. If these allegations are found true in the final order, the Commission can impose a fine on these companies up to three times their profit or 10 percent of the total turnover (whichever is higher). This penalty may be for each year of violation. Apart from this, personal fine can also be imposed on the officers found guilty.