The Competition Commission of India (CCI) has taken a major action, clamping down on the major cement companies of the country. In the alleged “Carteligation” i.e. Price Collussion and Closing Charges against many companies including Ultratech Cement, Dalmia Bharat and Shree Digvijay Cement have been ordered to submit a detailed financial information under the investigation of allegations of conspiracy and conspiracy to plot.
Start of investigation
The matter came to light in November 2020 when the ONGC complained to the CCI that some cement companies in its various tenders were fixing the price together and damaging the competition. After this, the Directorate of Investigation of the Commission conducted a detailed investigation and submitted its report to CCI in February 2025. The DG report expressed doubts that these companies bid in coordination with each other during the tender process, disrupting fair competition and the ONGC suffered financial loss.
Documents sought from companies
CCI has directed the Ultratech Cement, Dalmia Bharat, India Cements and Shree Digvijay Cement to present their balance sheet, income-expenditure details, GST returns and other financial documents from FY 2010–11 to 2018–19. Ultratech will also have to submit documents after the acquisition of India Cements, as in December 2024, Ultratech gained control with 32.72% stake in India Cements. In addition, individual income tax reporters of some top officials of companies have also been demanded. The Commission has clarified that if the information sought is not provided on time or completely, then a heavy fine can be imposed under Section 45 of the Competition Act, 2002.
Shocking facts in DG report
The DG report also mentions a mediator called Umakant Agarwal, which was playing an important role in coordinating between these companies. This indicates that companies made secret strategies among themselves to influence competition among tenders.
Forward procedure
The CCI has ordered all companies to submit all the necessary documents within 8 weeks. After analysis of documents, if it is confirmed that the illegal value was done in tenders, CCI may impose heavy fines on companies or take other legal action.