Mumbai : The cement industry welcomed the verdict of Competition Appellate Tribunal (Compat) setting aside Rs 6,316.59-crore penalty imposed on 11 cement firms by fair trade regulator CCI on cartelisation charges. “We welcome the move to set aside penalty imposed on us by CCI on cartelisation charges. This is a good move and natural justice as we have nothing to do with cartelisation,” UltraTech Cement Managing Director O P Puranmalka told PTI. UltraTech was one of the companies which was asked to pay penalty.

In a major verdict, Compat quashed Rs 6,316.59 crore penalty slapped on 11 cement companies by the CCI (Competition Commission of India) on cartelisation charges and asked the watchdog to hear the matter afresh. The Tribunal also allowed the cement manufacturers to withdraw the 10% penalty amount already deposited with the CCI.

“We will receive the 10 % deposit along with the interest. For UltraTech Cement, this works out to be around Rs 112 crore,” Puranmalka said. The judgement follows appeals filed by cement firms and their industry body Cement Manufacturers Association (CMA) against the two CCI orders passed in June-July 2012.  The companies which faced the CCI action are: ACC, Ambuja Cements, Binani Cements, Century Textiles Ltd, India Cements, JK Cements, Lafarge India, Madras Cements, UltraTech, JP Associates and Shree Cements. CMA Secretary General N A Viswanathan said the industry body has always said that there was no cartelisation.

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