Investigation Swirls Around Ultratech in Alleged Cement Price-Fixing Scandal
The Competition Commission of India (CCI) has stepped up its investigation into allegations of cartelisation among cement manufacturers, following a complaint by Oil and Natural Gas Corporation (ONGC) regarding potential anti-competitive collusion.
The investigation, which began in November 2020, has taken a significant turn with the Directorate General (DG) of the CCI submitting its investigation report on February 18, 2025. The report found contraventions of competition regulations involving UltraTech's subsidiary India Cements, Dalmia Bharat Cements, Shree Digvijay Cements, and a middleman named Umakant Agarwal.
On May 26, 2025, the CCI considered the DG’s report and issued directions for the companies to submit detailed financial documents. UltraTech and India Cements must provide financial records for FY2015 to FY2019, while Dalmia Bharat and Shree Digvijay must submit audited financial statements for FY2011 to FY2019.
In addition, executives of these companies are required to submit personal financial details, including income tax returns for the past five years, and formal responses to the findings. The CCI has warned that failure to furnish complete or accurate financial information within the stipulated timeframe could result in penalties under Section 45 of the Competition Act.
This investigation gains additional significance in light of UltraTech’s recent acquisition of a controlling stake in India Cements in December 2024, which adds complexity to market dynamics. Dalmia Bharat Cements and Shree Digvijay Cements have also been asked to submit their financial statements for nine years, from FY11 to FY19.
Dalmia Bharat Cements has stated that it has not yet been heard formally but is cooperating fully with the investigation. An email sent to UltraTech Cements and Dalmia Cement Bharat remained unanswered at the time of filing the story.
The CCI notice mentioned that non-furnishing of financial details or incomplete/false information within the time frame by the companies would make them liable under section 45 of the Act. The current status of the investigation indicates that the CCI is gathering comprehensive financial evidence and responses from the involved parties to ascertain the alleged cartelization and collusion in ONGC tenders.
The CCI's probe into potential anti-competitive conduct among cement manufacturers, including UltraTech and Dalmia Bharat Cements, has expanded to cover their financial dealings within the industry. On May 26, 2025, the CCI issued directions for these companies to submit detailed financial documents, ranging from 2011 to 2019, to provide a comprehensive picture of their business transactions.
