The Delhi High Court upheld the CCI’s decision to allow BAI to participate in the proceedings, agreeing with the competition regulator’s view that the association, representing a major section of cement consumers, could provide valuable insights into the impact of any potential cartelisation on the construction industry.
The case stems from complaints received by the CCI in 2019 alleging that grey cement manufacturers were acting together to manipulate prices and cartelise the market.
One of the complaints was filed by BAI, which represents more than 20,000 builders and infrastructure developers that purchase cement.
The CCI subsequently launched a suo motu investigation and conducted searches at the premises of five cement manufacturers, including UltraTech, in December 2020.
BAI later sought to participate in the proceedings, but the CCI rejected its initial request in December 2021. The association then approached the Delhi High Court and, following a favourable ruling, the CCI allowed BAI to present its views and made it a party to the proceedings on July 5, 2023.
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The CCI said BAI’s participation could help it conduct a more meaningful investigation, given that builders are among the largest consumers of cement.
UltraTech challenged the CCI’s decision before the Delhi High Court, arguing that BAI was only an informant and was not itself under investigation, and therefore should not have been made a party to the proceedings. The company also raised concerns that BAI’s participation could give builders access to commercially sensitive information submitted by cement manufacturers during the investigation.
BAI, however, argued that its inclusion would allow it to provide valuable insights into the impact of alleged cartelisation and price manipulation on the construction industry.
The Delhi High Court has now dismissed UltraTech’s plea and upheld the CCI’s decision to include BAI in the proceedings.
