Realty developers´ body, the Confederation of Real Estate Developer´s Associations of India (CREDAI) has moved the competition watchdog, Competition Commission of India (CCI) against cement manufacturers, alleging them of cartelisation.
While making the announcement of moving the CCI, CREDAI also highlighted the violation by cement manufacturers of the Commission´s ´cease and desist´ order of 2012. The 2012 order of CCI had held that the cement manufacturers had formed a price cartel and were fined nearly Rs 6,000 crore by the regulator, said the CREDAI release.
In its submission to the Commission, CREDAI has pointed out that the cost of raw material used in manufacturing the cement has come down from January 2015 to September 2015 but cement companies never passed on this benefit to their customers. Instead, they seemed to be working together in controlling supply and prices. CREDAI highlighted that the real estate sector is under pressure currently with a consequent decrease in cement demand as housing and other real estate sectors account for nearly half of the cement demand in the country. Despite the low demand, the prices of cement have jumped by 20-40%.