India’s competition watchdog has found market leaders Tata Steel, JSW Steel, state-run SAIL and 25 other firms breached antitrust law by colluding on steel selling prices, a confidential document shows, putting the companies and their executives at risk of hefty fines.
The Competition Commission of India (CCI) has also held 56 top executives, including JSW’s billionaire managing director Sajjan Jindal, Tata Steel CEO T.V. Narendran and four former SAIL chairpersons, liable for price collusion over varying periods of time between 2015 and 2023, according to a CCI order dated October 6, which has not been made public and is being reported for the first time.
JSW declined to comment, while Tata Steel, SAIL, and the executives did not respond to Reuters queries. The CCI also did not respond to requests for comment.
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 increasing prices. Reuters reported in 2022 the watchdog raided some small steel companies as part of an investigation into the industry.
The probe was later expanded to as many as 31 companies and industry groups, as well as dozens of executives, the CCI’s October order, reviewed by Reuters, shows. Under CCI rules, details of cases related to cartel-like activity are not made public before they have concluded.
The CCI investigation has “found the conduct of the parties to be in contravention” of Indian antitrust law and “certain individuals have also been held liable,” the order stated.
The findings are a critical stage of any antitrust case.
They will be reviewed by top CCI officials and companies and executives will also have the opportunity to submit any objections or comments in a process that is likely to take several months given the scale of the investigation.
The CCI will then issue its final order, which will be released publicly.
India is the world’s second-largest producer of crude steel, and demand for the alloy has been rising as infrastructure spending has increased in the fast-growing major economy.
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