NCLAT rejects cement cos’ plea against CCI penalty

In a setback to 10 major cement producers, the National Company Law Appellate Tribunal on Wedneday dismissed their plea against the around Rs 6,300 crore penalty imposed by fair trade regulator CCI over alleged cartelisation in the sector.

The appellate tribunal also upheld the quantum of penalty imposed by the Competition Commission of India (CCI), observing that the fair trade regulator has imposed the minimum fine.

Some cement makers as Ambuja Cement, Ramco, JK Cement and UltraTech said they are consulting with their legal teams and intend to challenge the order before the Supreme Court. “We find no merit in these appeals. They are accordingly dismissed,” said a two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya. The tribunal added: “So far as the quantum of penalty order is concerned, as we find that the CCI has imposed mere minimum penalty, no interference is called for against the same.”

Passing an order on August 31, CCI had imposed a penalty of more than Rs 6,300 crore on 10 cement companies for cartelisation, along with their lobby group Cement Manufacturers’ Association.