Gauhati HC Overturns CCI's Cartelization Inquiry

Aggrieved by the Competition Commission of India (CCI)'s decision to investigate the alleged cartelization in Assam and the North-East region by cement manufacturing companies, Star Cement Ltd. (the Petitioner) approached the Gauhati High Court. The Petitioner contended that the CCI had insufficient grounds to establish a prima facie case against them. After hearings parties in length, the High Court held that the price variations among the companies indicated competitive behavior rather than cartelization and, thus, there was no prima facie evidence of cartelization, which is a necessary pre-condition before initiating an inquiry. Consequently, the High Court has set aside CCI's order to investigate the alleged cartelization as well as the hefty penalty of Rs.5,00,000/- imposed on the Petitioner for non-compliance of certain directions.