In a major relief to the top 11 cement companies, the Supreme Court stayed a penalty of ₹6,300 crore levied by the Competition Commission of India (CCI) on these companies in 2016. However, the apex court has directed the companies to deposit 10 per cent of the penalty.
The case pertains to the alleged price cartelisation case filed by the Builders Association of India with the CCI. In August 2016, the Commission found the cement companies guilty and levied a penalty of ₹6,300 crore on 11 cement companies including UltraTech Cement (₹1,175 crore), ACC (₹1,148 crore), Ambuja Cement (₹1,163 crore), Ramco Cements (₹259 crore) and JK Cement (₹129 crore) and the industry body Cement Manufacturers’ Association.
Cement companies challenged the penalty at Competition Appellate Tribunal and it was stayed on November 22 with a clause to shell out 10 per cent of the penalty within a month of the order.
On July 25, the National Company Law Appellate Tribunal (earlier Competition Appellate Tribunal) dismissed cement-makers’ plea on CCI penalty following which they moved the Supreme Court. ACC, in a statement, said: “We would like to inform that at the hearing which took place today, the Supreme Court has admitted the Company's Civil Appeal and has also granted stay against the order/ judgement of CCI/NCLAT.”