New Delhi: Fair trade regulator CCI has dismissed a complaint alleging that 11 cement makers, including Ultratech and Jaypee, indulged in pricing cartelisation in Andhra Pradesh.
The complaint alleged that the cement companies had formed a cartel and "abnormally hiked the prices of cement" in the state following the General Elections in the country earlier this year.
Other companies named in the complaint are Penna Cements, India Cements, Bharathi Cements, Dalmia (Bharat) Cements, Bhavya Cements, Zuari Cements, Ramco Cements, KCP Cements and My Home Cements.
In an order released today, the Competition Commission of India said that "on the basis of the averments made in the reference, no case, whatsoever, of contravention of the provisions of...The (Competition) Act is made out against the opposite parties".
The fair trade regulator observed that no document or other details had been filed by the complainant in support of the allegations.
The complaint had alleged that after the General elections in May, the cement manufacturers in Andhra Pradesh have formed a cartel and hiked the prices of cement by Rs 75 per bag in a span of one month.
It was also alleged that the cement makers had "bluntly rejected" the request by the Andhra Pradesh government to reduce the price, saying that "it is not viable for them to roll back the prices and even a small extent of decrease in price would affect the companies and they may have to shut down their units".
According to the complainant the price hike had adversely affected the construction activity and that the builder's associations had stopped purchasing cement since first week of July, 2014.
