The Supreme Court today stayed the Rs 6,300-crore penalty that was imposed on cementmakers by the Competition Commission of India over allegations of cartelisation.
A two-judge bench headed by Justice Rohinton Nariman said that the 10 percent deposit made earlier by the cement companies will continue, Bloomberg separately reported.
The court upheld the National Company Law Appellate Tribunal’s decision in July, which had turned down a plea filed by cement companies challenging the antitrust regulator’s 2016 decision to penalise the manufacturers.
In Aug. 2016, the CCI ruled that 10 cement companies used the platform provided by the Cement Manufacturers’ Association and shared details relating to prices, capacity utilisation, production and dispatch, thereby restricting production and supplies in the market.
In a separate order, the CCI imposed a penalty of Rs. 397.51 crore on Shree Cement Ltd. Ultratech Cement Ltd. declined the most among cement companies today, falling 3.6 percent to Rs 3,813.20 per share, as of 1:35 p.m.