Competition Tribunal saves cement companies from CCI's Rs 6,316 crore penalty

In a major verdict for cement companies, the Competition Appellate Tribunal (Compat) on Friday set aside Rs 6,316.59 crore penalty imposed on 11 cement firms by CCI on cartelisation charges and asked the fair trade regulator to hear the matter afresh.

The Compat also allowed the cement manufacturers to withdraw the 10% penalty amount already deposited with the CCI, which has been asked to pass a fresh order within three months.

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 regulator had imposed a cumulative penalty of Rs 6,316.59 crore on cartelisation charges.

Also read: CCI deals cement companies a Rs6,300 crore blow

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. 

Also read: Rs398 crore CCI -blow for Shree Cement

Cement stocks gained as much as 4.5% on Friday after the Competition Appellate Tribunal set aside Rs 6,316.59 crore penalty imposed on 11 cement firms by the Competition Commission of India(CCI) on cartelisation charges.

Shares of JK Cement jumped 4.44%, Shree Cements climbed 2.66% and Ambuja Cements gained 2.45% on BSE.

Similarly, ACC rose by 1.54% and UltraTech Cement was up 1.37%.