Real estate developers body National Real Estate Development Council (NAREDCO) has approached the Competition Commission of India (CCI) seeking intervention against the alleged cement cartelisation hitting real estate developers.
“It is not possible that within three months the cement prices would shoot up by 66 per cent. These prices are being pushed up due to artificial scarcity being created by cement cartels that is adversely affecting our business. We have requested CCI's intervention to free supply of cement so that prices return to normal.” President NAREDCO and Raheja Developers Chairman and Managing Director, Mr Navin Raheja said.
Mr Raheja warned that if cement prices continue to increase with no price correction, the industry's costs could go up by 15 to 20 per cent translating to a price increase for consumers in all their new projects by about the same amount.
“If cement prices go up, construction projects get delayed and the price increase gets passed onto the consumer. Besides cost of housing, building and construction, prices of all related infrastructure industries also goes up which ultimately have to be borne by the consumer,” he added.
Mr Raheja was speaking to newspersons on the sidelines of an event organised to announce the inking of a $204 million (Rs 1020 crore) contract by Raheja Developers with Dubai-based Arabtec construction company. As part of the JV, initially Arabtec will start construction on three of the Raheja projects — Raheja Revanta, Raheja Phoenix and Raheja Srishti. Subsequently the Special Purpose Vehicle - Arabtec Raheja would be executing projects of other developers also across the country.