Economy & Market
Cement cos look for stay on CCI fine to avoid provisioning
The cement companies, which were slapped with penalty by the Competition Commission of India (CCI) in the price cartelisation case, may have to soon provision for the same. The CCI order last month gave companies 90 days to pay a Rs 6,300-crore penalty.
The 11 cement companies that were penalised for price cartelisation have moved the Competition Appellate Tribunal against the order.
Vinod Juneja, Managing Director, Binani Cement,
said much will depend on the outcome of the appeal filed against the order. All the companies have appealed against the penalty and if it is stayed then there is no need for provisioning, he added.
The companies are ACC, Ambuja Cement, UltraTech Cement, Grasim Industries (now merged with UltraTech), Lafarge India, JP Associate, Century Textile and Industry, Madras Cements, Binani Cements, India Cements and JK Cement.
Sudip Bandyopadhyay, Managing Director, Destimoney Securities
, said the penalty on a core sector such as the cement industry will weaken the foreign and domestic investor confidence, which is already hit by the retrospective tax amendment and the 2G scam.