SC refuses to interfere with COMPAT order against Indian cement firms

The Supreme Court declined to interfere with the order of the competition tribunal directing 10 cement firms to deposit 10 per cent of the penalty of INR63bn (US$1.08bn) imposed on them for allegedly indulging in cartelisation.

However, the apex court slightly modified the order of the Competition Appellate Tribunal (COMPAT) by extending the deadline of 16 June to 24 June for depositing the amount with the tribunal.

It also added that the 10 per cent amount deposited by each company shall be kept in a short-term fixed deposit, preferably of six months, with a nationalised bank until the outcome of the appeal pending before the tribunal.

"At this stage, it would be appropriate to take equitable view of the matter and 10 per cent of the penalty amount of INR63bn has to be paid and the same should not be interfered by this court," a bench comprising justices Gyan Sudha Misra and S J Mukhopadhaya said.

Earlier, various cement firms had moved the COMPAT against the order of Competition Commission of India (CCI) which had imposed penalty of INR63bn on 10 firms, saying they had indulged in cartelisation by not utilising the available capacity with an aim to raise the prices in times of higher demand.