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Compat scraps `6,317-cr CCI fine on 11 cement cos

The Competition Appellate Tribunal on Friday set aside Rs 6,316.59 crore penalty imposed on 11 cement manufacturers by CCI for cartelisation and directed the fair trade regulator to pass a fresh order in three months.

The tribunal also allowed the cement companies to withdraw the 10 per cent of the penalty amount already deposited with the CCI. The judgement follows appeals filed by the cement firms and their industry body Cement Manufacturers Association against the two CCI orders passed in June-July 2012, wherein the watchdog had slapped a cumulative penalty of Rs 6,316.59 crore on cartelisation charges. 

The companies included ACC, Ambuja Cements, Binani Cements, Century Textiles Ltd, India Cements, JK Cements, Lafarge India, Madras Cements, Ultratech, JP Associates and Shree Cements. A senior CCI official said it would comply with the Compat order. According to Compat, whether the CCI Chairperson, who did not hear arguments of the learned counsel representing the appellants could become a party to the final order passed by the CCI, was one of the questions which arose in the appeals filed against CCI order of June 20, 2012. 

“Before parting with this order, we consider it necessary to mention that we have referred to various provisions of the Act (un-amended and amended) and Regulations and analysed the same to emphasise the proceedings held under the Act and the Regulations should be just and fair and in consonance with the principles of natural justice as engrafted in the Act and the Regulations,” the tribunal said.

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