CREDAI files complaint with India regulator

CREDAI files complaint with India regulator
06 October 2015

The Confederation of Real Estate Developers’ Associations of India (CREDAI) has filed a complaint with the Competition Commission of India (CCI) against cement manufacturers for the alleged manipulation of cement prices.

In its submission to the Commission, CREDAI has pointed out that the cost of raw materials used in manufacturing cement has fallen between January and September this year, yet customers are yet to feel the benefit. CREDAI believes that the cement firms are working in tandem to control both supply and price.

The voice of India's real-estate developers has also highlighted the violation of CCI’s cease and desist order of 2012.  The 2012 order had held that cement manufacturers had formed a price cartel and were fined nearly INR6000 crore by the regulator, said the release.

In addition, CREDAI highlighted with subdued demand for housing and other real estate sectors (which account for nearly half the cement demand in the country) cement prices have jumped 20-40 per cent in major cities across India in the past couple of months.

Last month CREDAI’s NCR chapter decided to stop buying cement from companies like Ultratech and Lafarge for unilaterally increasing cement prices in the last month.

Having accused these companies of anti-competitive business practices, CREDAI has urged CCI to look into the grounds for supply restriction and the recent price increase in cement given the low demand.

Published under Cement News