02 September 2016 Current Affairs: The Competition Commission of India (CCI) has imposed penalties on 10 cement companies and their umbrella association - Cement Manufacturers Association (CMA) for cartelisation.
The CCI has levied penalties on 10 cement companies viz. ACC, ACL, Binani, Century, India Cements, JK Cements, Lafarge, Ramco, UltraTech and Jaiprakash Associates.
The Builders Association of India (BAI) had filed complaint against the cement companies and the CMA alleging in fixing collectively prices of cement.
It was alleged that these cement companies and the CMA shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted output and supplies.
Their collective was contravention of certain provisions of the Competition Act, 2002. It was also detrimental to the interests of consumers and the economy as cement is a critical basic input in construction and infrastructure industry.
Competition Commission of India (CCI) : The CCI is quasi-judicial statutory body established under The Competition Act, 2002.
It established in 2003 to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.
Its predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) which was functional prior to 1991 Economic Reforms.