CCI Probes Cement Firms for Possible Cartel Activities
India’s Competition Watchdog Demands Financial Records
India’s Competition Commission (CCI) has taken a significant step. They’ve asked big cement companies to share their financial records. This comes after a report showed possible rule-breaking in a tender process by ONGC.
Firms Under the Microscope
The CCI wants financial details from these companies:
- UltraTech Cement – Now in charge of India Cements
- Dalmia Bharat
- Shree Digvijay Cement
Financial Data Sought
On May 26, the CCI made specific requests:
- Checked financial records from UltraTech for India Cements (2014-15 to 2018-19)
- Similar records from Dalmia Bharat and Shree Digvijay Cement (2010-11 to 2018-19)
- Personal money details and tax returns from bosses at all three firms
Why This Investigation?
ONGC made a complaint. The government-run firm said there was teaming up in its buying tenders. The CCI started looking into it on November 18, 2020. A report on February 18, 2025, found signs of unfair business practices.
What Did They Allegedly Do?
The report suggests something serious. India Cements, Shree Digvijay, and Dalmia Bharat may have worked with a middleman. This teamwork might have led to unfair practices in the tender process.
CCI’s Clear Warnings
The CCI has given clear orders to the companies:
- Tell them about money made from sales linked to the alleged teaming up
- Give full and correct information
The CCI also gave a strong warning. If the companies don’t follow these orders, they could face big fines. These fines come under Section 45 of the Competition Act.
Recent Changes in the Industry
In December 2024, something big happened. UltraTech Cement became the main owner of India Cements. They bought a 32.72% share from its old owners. Now, UltraTech, owned by the Aditya Birla Group, controls the Tamil Nadu-based company.
