By IANS
New Delhi : Cement manufacturers in India were Thursday held guilty by the anti-trust commission of indulging in restrictive trade practices and fixing cement prices in concert.
They have been ordered to desist from this practice.
In a 120-page order, the Monopolies and Restrictive Trade Practices Commission said private sector cement companies were found guilty of indulging in cartel arrangements between February and April 1990.
The order should give enough rope to the government, which has been asking the cement manufacturers to lower prices following protests by consumers including the realty industry.
In the budget presented earlier this year, the government also took some action against the manufacturers by imposing an additional excise duty of Rs.200 per tonne of cement that sold for more than Rs.190 per bag.
Under the umbrella of the Cement Manufacturers Association (CMA), the cement makers indulged in restrictive trade practices, inviting action under provisions of the Monopolies and Restrictive Trade Practices Act, the order said.
State-run cement companies, however, escaped the indictment.
The full bench of the commission, comprising Chairman Justice O.P. Dwivedi and members M.M.K. Sardana and D.C. Gupta, delivered the order after investigations into alleged cartelisation and fixing of retail prices of cement in concert.
The respondents have been given eight weeks to file an affidavit of compliance.