CCI seeks replies from steel firms after cartel probe, no ruling issued yet
Competition Commission of India has not issued any ruling on cartelisation allegations against 35 steel companies, despite investigation findings of prima facie violations. Major firms including Tata Steel, JSW Steel, and SAIL are among those named, with 56 executives also held liable for activities between 2015-2023. CCI seeks responses from all parties before proceeding with hearings and potential penalties of up to 10% of total turnover.
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India's Competition Commission of India has not passed any ruling on allegations of cartelisation against steel companies, despite its investigation arm flagging serious concerns about anti-competitive practices in the sector. The probe findings remain under review, with no final orders issued at this stage.
Investigation Findings and Scope
The probe, headed by CCI's director general, concluded that around 35 steel companies have prima facie indulged in cartelisation. However, the Competition Commission of India has not accepted or rejected these findings at this stage. The investigation covers activities between 2015 and 2023, examining complaints of supply restriction and price coordination that were filed in 2021.
| Investigation Details: | Specifications |
|---|---|
| Companies Involved: | 35 steel firms |
| Senior Executives: | 56 individuals held liable |
| Investigation Period: | 2015-2023 |
| Probe Start Date: | 2021 |
| Investigation Report Date: | October 6 |
Companies Under Scrutiny
Major steel companies named in the investigation include Tata Steel, JSW Steel, and state-run Steel Authority of India Ltd, along with 25 other firms. These companies are alleged to have breached antitrust law by colluding on steel prices during the specified period.
According to sources, the CCI has sought responses from all companies named in the investigation report. The regulator will now fix a date to hear all parties before making any determinations about potential violations.
Regulatory Process and Potential Penalties
The Competition Commission of India will first decide whether the firms are in contravention of antitrust rules before subsequently ruling on penalties, if any. Under current law, the CCI can impose penalties of up to 10% of a company's total turnover if violations are established.
| Regulatory Framework: | Details |
|---|---|
| Maximum Penalty: | Up to 10% of total turnover |
| Current Status: | Seeking company responses |
| Next Step: | Hearing date to be fixed |
| Final Ruling: | Pending |
The investigation began following complaints about supply restriction and price coordination in the steel sector. The findings remain subject to review before any final order is issued, ensuring due process for all parties involved.
Current Status
No orders or rulings have been issued so far, sources confirmed. The CCI's approach demonstrates the regulator's commitment to thorough due process, allowing all named companies and executives to present their responses before making final determinations about potential antitrust violations in India's steel sector.
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