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20
January 2017
Fair
play regulator Competition Commission of India (CCI) on Thursday said it has
imposed penalties on seven cement companies for bid-rigging.
According
to the regulator, the case pertains to a tender floated by the 'Director,
Supplies & Disposals', Haryana, in the year 2012, for procurement of
cement.
"The
bid-rigging has been established from quoting of unusually higher rates in the
impugned tender (than rates quoted in tenders of previous years), determining
different basic prices for supply of cement at the same destination through
reverse calculation," the regulator said in a statement. The Total Investment & Insurance Solutions
"The
anti-competitive conduct was re-affirmed through SMS exchanged and calls made
amongst the officials of the cement companies." The Total Investment & Insurance Solutions
The
regulator disclosed that it has imposed fines on Shree Cement, UltraTech
Cement, Jaiprakash Associates, J.K. Cement, Ambuja Cements, ACC and J.K.
Lakshmi Cement.
"Penalty
of Rs 18.44 crore, Rs 68.30 crore, Rs 38.02 crore, Rs 9.26 crore, Rs 29.84
crore, Rs 35.32 crore and Rs 6.55 crore has been imposed upon Shree Cement,
UltraTech Cement, Jaiprakash Associates, J.K. Cement, Ambuja Cements, ACC and
J.K. Lakshmi Cement," the statement pointed out. The Total Investment & Insurance Solutions
"The
penalty has been levied at the rate of 0.3 per cent of the average turnover of
the cement companies of preceding three years." The Total Investment & Insurance Solutions
The
regulator elaborated that it also took note of potential delays which would
have occurred in the execution of public infrastructure projects due to
cancellation of the impugned tender, while imposing the penalties. The Total Investment & Insurance Solutions
"At
the same time, due consideration was given to factors such as peculiarity of
the tender process which created uncertainty in procurement, total size of the
impugned tender and competition compliance programmes put in place by some
companies while determining the quantum of penalty," the statement added.The Total Investment & Insurance Solutions
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