CCI directs UltraTech, Dalmia Bharat, Shree Digvijay Cement to furnish financial records over alleged cartelisation: All you need to know why the cement companies are under the scanner

India’s leading cement producer company, UltraTech Cement, along with Dalmia Bharat and Shree Digvijay Cement, is in serious trouble after being accused of one of the most egregious instances of cartelisation in recent times. The Competition Commission of India (CCI) has opened a complete probe into charges that these three businesses conspired to manipulate tenders issued by the Oil and Natural Gas Corporation (ONGC) between 2013 and 2018.

The firms allegedly breached competition standards by fixing bid prices of cement through a middleman called Umakant Agarwal to secure some firms bagging the tenders inappropriately, preventing real contenders from entering the bid. Such price fixing, particularly in government tenders, is not just against the law but also harms India’s infrastructure projects, housing schemes, and taxpayers directly.

What triggered the CCI probe?

The CCI inquiry started in November 2020 when ONGC made a formal complaint alleging bid fixing by several cement firms in its tenders for procurement. The fair trade regulator then ordered its investigating arm, the Director General (DG), to carry out an in-depth probe. The DG submitted its report on February 18, 2025, determining that UltraTech Cement (its subsidiary India Cements), Dalmia Bharat Cement, and Shree Digvijay Cement had colluded in an anti-competitive manner.

These three firms had utilised Umakant Agarwal as an intermediary to organise bids on their behalf, going against the ethics of fair competition, the DG’s report said.

Why this matters: the scale of the cement industry

India’s cement industry is worth more than ₹5 lakh crore. An organisation such as UltraTech, which alone produces more than 20% of the country’s cement, has significant power over market rates. Even a marginal price rigging—if only a 5% increase—is going to cost the nation ₹25,000 crore. That’s the public money that should be invested in roads, housing for the lower-income groups, and other priority infrastructure projects.

Cartelisation in this very vital sector not only raises costs but also holds up national development. Here, government tenders aimed at developing the nation were hijacked for personal gain.

What has the CCI ordered now?

The CCI, in compliance with the findings of the DG, has asked all three companies to provide their financial documents for examination. UltraTech Cement has been instructed to provide the financial statements audited of India Cements (recently acquired by it) for FY2014-15 to FY2018-19.

Dalmia Bharat and Shree Digvijay Cement have been asked to supply financials for a longer duration, nine years from FY2010-11 to FY2018-19.

That’s not the end of it. The CCI has also directed the top executives of all three firms to provide their financial records, including income tax returns for the last five years, and to reply formally to the DG’s report in eight weeks.

Non-compliance can invite penalties under Section 45 of the Competition Act, which pertains to non-disclosure or false disclosure of information during investigations.

UltraTech’s recent takeover adds more layers to the controversy

In December 2024, UltraTech Cement acquired India Cements’ promoters’ 32.72% stake, becoming its promoter. It already owns 22.77% through market purchases. The acquisition provided UltraTech with major control over one of the oldest cement brands in South India.

With this takeover, questions are now being raised whether the so-called unethical practices are still being carried out under a different name or even increasing. There’s a growing fear that such market dominance could permit further abuse of power unless there are strict regulatory controls in place.

Adding to the controversy, UltraTech’s Chief Legal Officer Anoop Khatry resigned on Thursday,5th July, 2025. His resignation occurred as the company faced new regulatory scrutiny. Although the formal filing quoted “personal reasons,” industry observers and regulators alike have expressed surprise at the timing of his departure.

Statements of firms

So far, Dalmia Bharat has acknowledged the CCI’s direction in a regulatory filing, stating that no formal order has been issued against them yet and that the company is cooperating fully with the authorities. The other two companies, UltraTech and Shree Digvijay, have not issued detailed public statements as of now.

What’s next for the cement giants?

The ball is now in the companies’ court. If they do not come up with the required papers or if the CCI comes across stark proof of cartelisation, the firms could be dealt severe punishment. These can range from large fines to reputations being ruined and, in the worst-case scenario, bans on bidding on future public tenders.

Since public sector enterprises such as ONGC depend upon fair and competitive bidding for large infrastructure and power projects, rigging of tenders would have serious long-term implications for India’s economy, especially for a sector that constructs the very bedrock of the nation, literally. The honour of competition in such a case is not debatable.

This is not merely a case of corporate competition or regulatory intervention. It’s a grave issue that concerns national progress, public funds, and fair business practices. The cement industry has a significant role to play in India’s growth narrative, and any dominance abuse has to be addressed forcefully.

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