In a setback to 10 major cement producers, the National Company Law Appellate Tribunal today dismissed their plea against the around Rs 6,300 crore penalty imposed by fair trade regulator CCI over alleged cartelisation in the sector.
The appellate tribunal also upheld the quantum of penalty imposed by the Competition Commission of India (CCI), observing that the fair trade regulator has imposed the minimum fine.
Some cement makers as Ambuja Cement, Ramco, JK Cement and UltraTech said they are consulting with their legal teams and intend to challenge the order before the Supreme Court.
"We find no merit in these appeals. They are accordingly dismissed," said a two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya.
Regarding the Rs 6,300 crore penalty, the tribunal said: "So far as the quantum of penalty order is concerned, as we find that the CCI has imposed mere minimum penalty, no interference is called for against the same."
Commenting on the NCLAT order, Ambuja Cement said: "While the company is yet to receive the order of NCLAT, it believes that on merits it has sufficient grounds for a successful appeal and intends to file the same with the Supreme Court."
JK Cement said: "The company has been legally advised that it has a good arguable case on merits. Accordingly, the company shall file an appeal to Supreme Court to challenge the impugned order within the time prescribed under the law."
Leading cement maker UltraTech said: "The detailed order is awaited, upon examining the same, the Company will take appropriate action, as advised by its lawyers."
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