The shares of the Shree Cement were trading lower after the Competition Commission of India (CCI) imposed a penalty at the rate of 0.5 times of its profits for the years 2009-10 and 2010-11 aggregating to Rs 397.51 crores.
The shares of the company were seen trading lower by 1.42% at Rs 3,020 after reaching intra-day low of Rs 2,975 on BSE at 10.15 am IST.
The Commission has directed M/s Shree Cement Limited to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.
The Monopolies and Restrictive Trade Practices (MRTP) Commission had initiated the investigations on the basis of press reports published in a business daily as well as on a letter of Builders Association of India.
The inquiry was based on a case received on transfer from the Office of the Director General (Investigation & Registration) of the erstwhile MRTP Commission under section 66(6) of the Competition Act, 2002.
The Commission in its order issued found eleven other cement manufacturers including M/s Shree Cement Limited and CMA in contravention of the provisions of the Competition Act, 2002 which deal with anti-competitive agreements including cartels.