UltraTech Cement challenges CCI order making builders body a party in cartelisation case

CCI initiated investigation against cement companies in 2019 after it received information from multiple sources regarding abnormal increase of cement prices in India

UltraTech Cement moved a writ petition in Delhi High Court on July 27 challenging the order of Competition Commission of India (CCI), which is said to allow Builders Association of India (BAI) to be made a party in the ongoing cement cartelisation case.

Justice Subramonium Prasad of Delhi High Court heard the case at length and reserved it for judgment. The judge informed the parties that an order in the case will be passed in the third week of August.

Appearing for cement major, senior advocate Abhishek Manu Singhvi argued that CCI permitted BAI to be made party to the proceedings without hearing their objections. He argued that the order does not give any reasons as to why BAI is a necessary party to the proceedings. According to Singhvi, BAI will get access to UltraTech's confidential documents without their consent if they are made a party to the proceedings.

CCI argued that BAI will not get any access to UltraTech's confidential documents as they are not in CCI's 'confidentiality ring' in the said proceedings. According to CCI, the court will have to look into two aspects before adjudicating on an issue like this, one whether BAI is a necessary party and second, whether there is public interest involved in the case.

Thus, CCI justified making BAI a party to the proceedings. Senior advocate  Percival Billimoria appeared for BAI and argued that they were made a party since the case involves larger interest and they are an important stakeholder in the same.

The anti-trust watchdog had on a previous occasion rejected BAI's request to be made a party in the proceedings. BAI challenged this order at Delhi High Court, the HC in September 2022 directed it to file a fresh application at the CCI.

Another cement cartel case

CCI initiated investigation against cement companies in 2019 after it received information from multiple sources regarding abnormal increase of
cement prices in India. The parties alleged that the cement companies were colluding to artificially increase the price.

This is the second time CCI is investigating cartelisation among cement companies. In 2012, he CCI imposed a total penalty of $1.1 billion on several cement companies for colluding to under-use their plants and create an artificial shortage of cement. An appeal against that decision is still pending.