Economy & Market
COMPAT sets aside Rs 6,300 cr penalty on 11 cement cos
The Competition Appellate Tribunal (COMPAT) has provided temporary relief to the 11 cement companies which had been slapped with a penalty of Rs 6,300 crore by the Competition Commission of India (CCI) for alleged cartelisation in FY10 and FY11. In 2012, CCI had imposed this penalty to be paid on 50 percent of profits earned by each of the eleven companies in FY10 and FY11. Corporate tax lawyer, HP Ranina, says this move by COMPAT will give the companies an opportunity to prove that they did not resort to cartelisation and the prices were independently based on the demand supply situation and other relevant factors. COMPAT has directed the CCI to pass fresh orders to the companies within the next three months.
´The commission should follow comprehensive protocol and conduct inquiry´, COMPAT said. Meanwhile, CCI said that it will refund the 10 per cent amount deposited by the companies so far, towards the penalty obligation.