- Court rejects UltraTech challenge against BAI inclusion
- CCI investigation into alleged cement cartelisation continues
The Delhi High Court has dismissed UltraTech Cement’s plea challenging the Competition Commission of India’s (CCI) decision to include the Builders Association of India (BAI) in its ongoing investigation into alleged cartelisation and price manipulation by cement manufacturers.
The court upheld the CCI’s view that BAI, which represents a large section of cement buyers, can provide useful information on the impact of any possible coordination among cement manufacturers on the construction industry.
Investigation follows 2019 complaints
The case dates back to complaints filed with the CCI in 2019, alleging that grey cement manufacturers were acting together to manipulate prices and cartelise the market.
BAI was among the complainants and represents more than 20,000 builders and infrastructure developers. This gives the association a significant consumer-side role in the cement market.
The CCI later started a suo motu investigation and conducted searches at the premises of five cement manufacturers, including UltraTech, in December 2020.
BAI allowed to present its views
BAI had initially sought permission to participate in the proceedings, but the CCI rejected its request in December 2021. The association subsequently approached the Delhi High Court.
Following the court proceedings, the CCI allowed BAI to present its views and made it a party to the investigation on July 5, 2023.
The regulator said BAI’s participation could help provide a better understanding of the impact of alleged anti-competitive practices because builders are among the largest consumers of cement.
UltraTech raises confidentiality concerns
UltraTech argued that BAI was only an informant and was not itself under investigation. The company also raised concerns that BAI’s participation could provide builders access to commercially sensitive information submitted by cement manufacturers.
BAI, however, maintained that its participation would help explain how any alleged price manipulation could affect cement consumers and the construction sector.
Market implications
The court’s decision allows BAI to continue participating in the CCI proceedings. For the cement industry, the case remains relevant as the investigation could provide greater clarity on pricing practices and competition in the market.
Outlook
The focus will now remain on the CCI’s further proceedings and eventual findings. Any regulatory action will depend on the evidence and conclusions reached during the investigation.
Leave a Reply