TATA STEEL, JSW STEEL, SAIL HIJACKED STEEL PRICES
WHAT HAPPENED ?
India’s competition watchdog, the Competition Commission of India (CCI), has concluded that major steel producers — Tata Steel, JSW Steel, state-run SAIL and 25 other firms colluded to fix steel selling prices and violated antitrust laws, according to a confidential regulatory order.
KEY FINDINGS
CARTEL-LIKE BEHAVIOUR:
CCI’s investigation, which began in 2021 based on complaints about artificially inflated prices and restricted supply, found coordinated pricing conduct by industry leaders between 2015 and 2023.
EXECUTIVES HELD ACCOUNTABLE :
56 senior executives — including Sajjan Jindal (JSW), T.V. Narendran (Tata Steel), and former SAIL chairpersons — have been named and held accountable for their roles.
WHATSAPP EVIDENCE:
Internal communications including WhatsApp messages among regional industry associations helped uncover price coordination and production cuts.
PENALTIES & FINE
The CCI’s order says the conduct “is in contravention of Indian antitrust law”, potentially exposing firms to significant penalties — including fines up to three times profit or 10% of turnover per year of violation.
Executives could also face personal fines and liability under competition rules.
SHARE PRICES DRIPPED
Shares of SAIL, JSW Steel, and Tata Steel dipped in trade following the news as investors digested the potential financial and regulatory fallout.
HOW IT ORIGINATED ?
The CCI investigation - the most high-profile case involving the steel industry started in 2021 after a group of builders alleged in a criminal case brought to a state court that nine companies were collectively restricting the supply of steel and snowballing prices.
FINAL THOUGHTS
CCI IS REPORTEDLY WORKING ON THE AMOUNT OF FINE TO BE LEVIED ON THE ABOVE MENTIONED COMPANIES AND FINAL ORDERS WILL BE ISSUED WITHIN A YEAR
R V SECKAR , FCS, LLB 79047 19295
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