CCI directs UltraTech, two others to give financial statements

Time of India

3 days ago

The Competition Commission of India (CCI) has instructed UltraTech, India Cements, Dalmia Cement (Bharat) Limited, Shree Digvijay Cement, and their executives to provide audited financial statements following a complaint by ONGC alleging cartelisation in tenders. The CCI's investigation suggests an anti-competitive agreement affecting competition in the Indian market.
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New Delhi: The Competition Commission of India (CCI) has directed Aditya Birla Group company UltraTech , owner of southern India-based India Cements , along with Dalmia Cement (Bharat) Limited (DCBL) and Shree Digvijay Cement and their executives to submit audited financial statements, including balance sheet and profit and loss account, within eight weeks of the order.The competition watchdog's direction came over a complaint filed by ONGC alleging cartelisation in its tenders. Following the complaint, the CCI had on November 18, 2020, directed its probe unit director general to look into the issue. The director general submitted the investigation report on February 18, this year, alleging contravention of the competition regulations.The CCI, after considering the report, concluded that the parties had entered into an anti-competitive agreement regarding supply, distribution or storage of goods with respect to an ONGC tender, affecting competition in the Indian market.The competition watchdog has directed UltraTech to submit the financial statements of its subsidiary India Cements for five years, from 2014-15 to 2018-19, and Dalmia Cement (Bharat) and Shree Digvijay Cement for nine years, from 2010-11 to 2018-19. It has also directed the executives of these companies to submit their detailed financials and income tax records for five years, along with their formal responses to the investigation report.Dalmia Cement (Bharat) said in a regulatory filing that the CCI had yet to hear it in the matter or pass any formal order. "DCBL remains committed to full regulatory compliance and is cooperating with the authorities," it said.The CCI found that India Cements, along with Shree Digvijay Cement and Dalmia Cement (Bharat), with a middleman named Umakant Agarwal, allegedly engaged in anti-competitive collusion.Later, on May 26, the CCI considered the investigation report and in a four-page order also directed the cement manufacturer to submit income derived from sales to ONGC.