State-run Steel Authority of India Ltd (SAIL) has approached the court and the Competition Commission of India (CCI) seeking detailed findings in the alleged steel cartelisation case. The company has received a notice from the competition watchdog and the CCI has concluded that there is suspicion of cartelisation, a senior industry executive told Business Standard but asked not to be named.
He said the company has not yet been provided with the detailed reasoning behind the regulator’s conclusions and SAIL has initiated legal steps to obtain the material.
“Since no details are available from CCI, there is a confidentiality ring that is being created. SAIL has approached the court and CCI. Then CCI will be providing detailed information on how they have come up with this. Only after looking at that, we can say (anything),” he said.
Business Standard had earlier reported that an investigation by CCI has found that Tata Steel, JSW Steel and SAIL, along with several other steelmakers, allegedly entered into anti-competitive agreements to collude on prices.
According to a 6 January report by news agency Reuters, 28 steel companies have been found in the alleged breach of antitrust law. The CCI investigation has also held 56 senior executives liable for price collusion over varying periods between 2015 and 2023, the report said.
The executive added that SAIL would respond substantively only after examining the report. “Unless we know the report, how they are reaching that conclusion, it is difficult to comment,” he said.
Under the Competition Act, cartelisation, which is defined as agreements between competing enterprises to fix prices, limit supply or control markets, is presumed to have an appreciable adverse effect on competition. Such agreements are void under Section 3 of the Act.
If the CCI’s findings are upheld in the final order, companies and executives could face significant monetary penalties under competition law.
