Analysis: the cement price-fixing dispute


VASANTH RAJASEKARAN of Phoenix Legal provides an insider’s perspective

The Builders Association of India (BAI) brought an action under section 19 of the Competition Act, 2002 against the Cement Manufacturers Association (CMA) and 11 major cement manufacturing companies for allegedly conniving with each other and indulging in price controlling activities across India.

The main legal argument from BAI was that cement companies, under the garb of an association, i.e. the CMA, had allegedly been entering into anti-competitive agreements, including exchange of price-sensitive information, thereby controlling the prices of cement across India.


The BAI contended that the alleged activities of cement companies also encompassed controlling production and restricting supply of cement to builders and consumers, thereby allegedly causing an artificial increase in cement prices. In light of these activities, the BAI requested an inquiry against cement companies for violating sections 3 and 4 of the act.

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VASANTH RAJASEKARAN is a partner at Phoenix Legal and he can be contacted at: