News Brief
Competition Commission Of India Penalises Paper Manufacturers For Indulging In Cartelisation
Swarajya Staff
Nov 19, 2021, 11:41 AM | Updated 11:41 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Competition Commission of India (CCI) on Thursday (18 November) imposed a penalty on several paper manufacturers for indulging in cartelisation.
The CCI issued a final order yesterday (18 November) against certain companies manufacturing paper from agricultural waste and recycled wastepaper as well as an association, which were found to have contravened the provisions of Section 3(1) of the Competition Act, 2002 (Act), read with Section 3(3)(a), which proscribe anti-competitive agreements, said an official release.
The case was initiated suo motu by the Commission on the basis of certain material found during the ongoing investigations of two other cases.
Although, the DG investigated 21 original paper manufacturers and the association, it only recorded findings of contravention of the provisions of the Competition Act against ten such paper manufacturers and the association, the release said.
The period of cartel was noted by the DG to be from September 2012 till March 2013.
The CCI found these companies and an association which provided its platform, for such activities to have indulged in cartelisation in fixing the prices of writing and printing paper, it added.
In this backdrop and further considering that during the pandemic, most businesses moved to the virtual mode thereby reducing the need for paper and affecting the paper business, CCI imposed a symbolic penalty of Rs 5 lakh each on the ten paper manufacturers found guilty of cartelisation.
Further, a penalty of Rs 2.5 lakh was imposed on the association for providing its platform for anti-competitive activities.
Apart from the above, CCI also directed the above paper manufacturers and the association, and their respective officials who have been held liable in terms of the provisions of Section 48 of the Act, to cease and desist in the future from indulging in anti-competitive conduct.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.