Cement cos asked to comply with CAT's order

The cement manufacturers, facing cartelisation charges, were on June 12 directed by the Supreme Court to comply with the Competition Appellate Tribunal's (CAT) interim order to pay 10 per cent of the total Rs 6,300-crore penalty imposed by the Competition Commission of India (CCI) by June 16.

The apex court has refused to give interim relief to the cement manufacturers in their appeal against the interim penalty imposed on them by CCI. The CAT had told the companies to pay 10 per cent of the total Rs 6,300-crore penalty imposed by the Competition Commission of India (CCI) by June 16. It posted their main appeal for August.

The manufacturers appealed against this to the SC, which decided to only extend the deadline for payment from June 16 till June 24. However, the court insisted on their complying with the CAT's interim order. The order was imposed by CCI against 11 cement majors (including ACC, UltraTech and Ambuja) and their association.

The apex court refused to lift the penalty order or reduce the rate, despite long arguments over two days by senior counsel Abhishek Singhvi for UltraTech Cement and Ranjit Kumar for Jaiprakash Associates. According to the modified order, the amounts shall be deposited with the tribunal and kept in a separate fixed deposit with a nationalised bank.