Realtors’ apex body CREDAI on Monday said it has filed complaint with fair trade regulator Competition Commission of India (CCI) against cement manufacturers alleging manipulation in prices of construction material that have risen by up to 40 per cent in last two months.
last month, CREDAI’s NCR chapter decided to stop buying cement from companies like Ultratech and lafarge for unilaterally increasing cement prices in the last one month.
“To control the cost of construction and make home prices work for the common man, the Confederation of Real Estate Developer’s Associations of India (CREDAI) has moved the Competition Commission of India (CCI) against cement manufacturers, who have been unduly increasing the cost of cement,” the association said in a statement.
In its submission to the CCI, CREDAI has pointed out that the cost of raw material used in manufacturing cement has come down from January 2015 to September 2015 but the companies never passed on this benefit to their consumers.
“Instead, they seemed to be working together in controlling supply and prices,” CREDAI alleged.
Industry body said that despite low demand, the prices of cement have jumped by 20-40 per cent in major cities across India in the last couple of months.
CREDAI (National) President Getamber Anand said that in Delhi-NCR, the prices have risen to about Rs300 per bag from Rs210 a bag on August 1.
“It is unfair that the cement manufacturers indulge in practices that control the prices of cement. CCI has warned CMA (Cement Manufacturers Association) in the past as well but it is unfortunate that they seem to be continuing with their price and market manipulation,” Anand said.
CREDAI said that demand for cement has declined in view of huge slowdown in the real estate sector. The realty sector accounts for nearly half of the cement demand in the country. The association complained that “there seems to be no grounds for supply restriction and the recent price increase in cement given the low demand”.