CCI Probes Cement Giants
Context:
The Competition Commission of India (CCI) has summoned financial records from UltraTech Cement (including subsidiary India Cements), Dalmia Bharat Cement, and Shree Digvijay Cement over alleged cartelisation in tenders floated by ONGC.
Legal Implications:
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Non-compliance, false, or incomplete submissions could attract penalties under Section 45 of the Competition Act.
Cartelisation refers to a collusion among competing firms to control prices, limit production, or divide markets with the intent to eliminate competition.
According to the Competition Act, 2002:
A cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement, limit or control:
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Production
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Supply
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Distribution
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Sale
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Price of goods or services
CCI investigates based on:
- Complaints from stakeholders (e.g. ONGC in cement cartel case)
- Suo motu cognizance
- References from government or regulators