Tata Steel, JSW Steel fall after CCI starts probe into allegations of cartelisation
The Coimbatore Corporation Contractors Welfare Association had filed a petition before the Madras High Court seeking a CBI (Central Bureau of Investigation) probe into the steel industry.
Several steel companies are on the radar of the Competition Commission of India (CCI). The companies are being investigated by CCI against allegations of cartelisation by some firms.
Sources told CNBC-TV18 that the commission has begun its investigation following an order from the Madras High Court.
The Coimbatore Corporation Contractors Welfare Association had filed a petition before the Madras High Court seeking a CBI (Central Bureau of Investigation) probe into the steel industry.
Following the news, major steel companies' shares fell from their day’s highs.
Shares of Tata Steel closed in the red at Rs 105.75, down by 0.09 percent from the previous close on the BSE. JSW Steel went down to settle at Rs 687 per share from a high of Rs 701 seen during the session.
Kalyani Steels settled 1.31 percent lower at Rs 332 per share while Jindal Stainless closed 1.01 percent lower at Rs 132.75.
CBI in its response to the court had said that it had sent a complaint to the CCI to initiate an investigation against the steel companies.
According to the association's complaint, the steel companies are allegedly engaged in cartelisation to increase steel prices. The hike in prices resulted in the loss of 500 contractors to the association. The steel companies raised prices despite the input cost not going up, it alleges.
(Edited by : Nishtha Pandey)
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