The Builders’ Association of India (BAI) said the penalty imposed on cement companies by the Competition Commission of India may not be a ‘sufficient deterrent.’
This was because of the money power of cement manufacturers, it said.
The association had petitioned CCI against price cartelisation by major cement manufacturers such as Associated Cement Company, Ambuja Cement, Grasim Cement, Ultratech Cement, Jaypee Cement, India Cements, J. K. Cements, Century Cement, Madras Cements, Binani Cement and Lafarge India.
The association has requested the commission to review the quantum of penalty and also conduct an enquiry on the losses incurred by contractors due to such profiteering by the cement makers.
Further, it has asked CCI to consider reimbursing the losses to contractors.
Mr D.L. Desai, Trustee, BAI, said they were also requesting CCI to impose a fixed percentage of the penalty as a deposit with the CCI in case the cement makers approached the ‘Appellate Authority’.
Mr Anand Gupta, Secretary, BAI, said, “It should be noted that construction industry is a major driver of Indian economy and any unfair practices, as indulged in by the cement companies, have an adverse impact not only on the industry but also on the overall economy.
“In the past three years, we have seen construction activities coming to a standstill and a large number of government and private contractors going bankrupt due to rising cost of all construction materials.”