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1:27 am - Thursday July 24, 2014

Heaviest Fine imposed

The Indian Competition Commission has imposed the heaviest fine of 60,000 lakhs of rupees on 11 cement companies for manipulation of very high price rise in their cement production by creating a cartel. The reputed companies like ACC and JK Cement, which are supposted to be leading organizations in the industrial development is a model role are also found indulged in such a gross industrial misconducts.

At one time after independence the country was facing acute shortage of cement. It was controlled item with the Government. But subsequently now we have enough cement units.
The Satna and Katni, Damoh, Rewa districts are very rich in the raw material lime stone. These days due to large scale development work, dams, canal, roads and housing colonies the cement is in high demand. The cartel of companies took advantage of this situation  and enhanced  the cement price abnormally high. Like MRTPC (Monopoly Restrictive Trade Practice Commission) the another body ICC (Competition Commission of India) has found out the 11 cement companies ACC, JK Cemnet, Binani Cement, JP Cemnet, Ultra Tech, Ambuja Cemnt, Madras Cement and Lapharj in a combined move dropped the practice of competing with each other and formed a cartel to sell the cement much above the profitable price.
Due to costly cement the housing builder and contractors of road construction are using the disproportionate admixture by using more sand and less cements. It is main cause of faulty construction.
The CCI action of heavy fine on cement companies is a very appropriate action in overall interest of consumers and general public. Now there must be provision of jail term also along with 10 existing provision of fine.

Posted in: Editorial

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