The Confederation of Real Estate Developer's Associations of India (CREDAI), which has about 10,000 members, filed the complaint last week with the Competition Commission of India (CCI) against the Cement Manufacturers' Association (CMA).
The move follows the decision of the CREDAI's NCR chapter to stop purchase of cement from companies like Ultratech and Lafarge for unilaterally hiking prices in last one month.
CREDAI (National) President Getamber Anand said the association has filed complaint against the CMA as prices have risen sharply despite low demand of cement. He said the prices have risen to about Rs 300 per bag (of 50 kg) in Delhi-NCR from Rs 210 a bag on August 1.
In its submission to the CCI, CREDAI said that the cost of raw material used in manufacturing cement has come down this year but the cement firms did not pass the benefit. "Instead, they seemed to be working together in controlling supply and prices," it alleged.
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Stating that the hike in cement prices have been "unusual and without any reason", CREDAI-NCR President Manoj Gaur said "This is because of cartelisation among the cement companies".
Ultratech Cement, Shree Cement, Zuari Cement, Lafarge India, JK Cement, JK Lakshmi Cement and Jaiprakash Associates are the members of the CMA among others.
CREDAI has submitted to the CCI that cement manufacturers have contravened the Commission's 'cease and desist' order of 2012 "as the prices of all the cement manufacturers are moving in tandem leaving the customers with no choice but to succumb to the cartel".
"This is quite unfortunate and not in public interest," CREDAI said, adding that the builders are unable to bring down the construction cost and make affordable homes.
CREDAI said that demand for cement has declined in view of huge slowdown in the real estate sector, which accounts for nearly half of the cement demand in the country.