Fair trade regulator CCI has rejected allegations that Aditya Birla group firm UltraTech Cement indulged in unfair business practices in the market of wholesaling of cement.
A complaint filed by a individual cement retailer had alleged that UltraTech had violated competition norms by imposing arbitary and unfair terms in the stockist agreement and was also stopping regular supply of cement as well as accepting orders as per its will.
In an order released today, Competition Commission of India (CCI) said that it was "of the prima facie opinion that no case of contravention of any of the provisions... Of the (Competition) Act is made out against the opposite party (UltraTech Cement)".
The complainant had submitted that in the past he was selling cement of UltraTech . However, in 2011 he had started selling other cement brands.
He had alleged that decision to diversify the sale of cement into multi-brand did not go well with UltraTech and as a result the firm started imposing various restrictions on the complainant.
According to the complainant, among others, UltraTech had asked him not to deal with other brands of cement and threatened him to stop the supply in case the he failed to stop dealing in other brands of cement immediately.
In its order, the Commission noted that UltraTech was not dominant in the market for wholesaling cement.
Further, it also said that due to existence of competitive forces at the manufacturers and the stockists level, the stockist agreement "did not seem to cause any appreciable adverse effect on competition in India", among others.
