Madras High Court Leads CCI To Intiate Probe Into Price Cartelisation

CASE BAKGROUND

• A complaint alleging the on-going cartelization in the cement industry was taken into notice on March 6, 2021 and the Court directed the Director General of Police of Tamil Nadu to look into it.
• The issue had been forwarded to the DGP by the Central Bureau of Investigation who was even asked to get instructions and to file an affidavit opposing it.
• Analogous accusations of cartelization were made to the big cement industry names wherein it was stated that an artificial scarcity was made to increase the prices.

CASE PROCCEDINGS

• The petitioner accused Ambuja Cement and ACC Limited in this cartelization.
• To enquire about these accusations, the petitioner had earlier made depictions to the CBI and the Police, the Court was told.
• The Court had previously questioned the CBI to get directives and to file a counter affidavit.
• It was emphasized that a cement bag was valued at Rs 385 in Tamil Nadu during July 2019.
• It was sold at Rs 340 around five months prior. Nevertheless, the cost was amplified by 13.23% and cement is now sold at Rs 420-430.

RECENT SITUATIONS

• It was noted that the State Government did not have power to regulate the price of cement as the industry is deregulated.
• The equivalent proposal was made in a counter-affidavit filed in response to a writ petition by the CCCWA last year, in which the State's refusal to regulate cement price climbs was confronted.

What do you think about this case?