ISLAMABAD (January 10 2006): The Monopoly Control Authority has imposed penalty of Rs 100,000, and Rs 10,000 per day, from the middle of November 2005, against 18 cement factories for non-compliance of its orders to reduce the ex-factory cement prices, by Rs 12 to Rs 60 per bag.
The MCA Chairman, Bilal Ahmad, told Business Recorder that after hearing the representatives of the cement factories and examining the cement prices for several months under the law, the Authority had passed orders on October 27 to 29, and November 1, 2005 and directed the 18 undertakings to (a) break the cartel and reduce ex-factory price by Rs 12 to 60 per bag immediately; (b) desist from such restrictive trade practices and cartel-like behaviour in future; and (c) report compliance to the Authority within a week.
He said that the undertakings failed to comply with the orders of the Authority. Therefore, notices u/s 19 of the MCA Ordinance were served on these undertakings.
He said that during hearing on 31.12.2005, the authorised representatives/counsel of the undertakings took the plea that they had filed appeals against the orders of the Authority in High Courts.
He said that since merely filing of appeals against orders is not binding on the Authority, it has therefore passed order under sub-section (i) & (ii) of Section 19 of the Ordinance to impose penalty of Rs 100,000 and Rs 10,000 per day against all the undertakings (18 Cement factories).
List of Undertakings To Whom Show-Cause Notices were issued Under Section 11 of the Ordinance V of 1970 In Violation of Section 6(1)(a) (forming of Cartel)
S.NO Name of undertaking Per Bag
1. Attock Cement Pakistan Limited 12/-
2. Askari Cement Limited Wah 51/-
3. Bestway Cement Limited 36/-
4. Cherat Cement Company Limited 47/-
5. Dandot Cement Limited 55/-
6. Dadabhoy Cement Industries Limited 47/-
7. D.G. Khan Cement Company Limited 60/-
8. Fecto Cement Limited 38/-
9. Fauji Cement Limited 37/-
10. Gharibwal Cement Limited 55/-
11. Kohat Cement Limited 40/-
12. Lucky Cement Limited 52/-
13. M/s Maple Leaf Cement Factory Limited 56/-
14. Askari Cement (Nizampur) Limited 51/-
15. Pioneer Cement Limited 39/-
16. Pak Land Cement Limited 50/-
17. Saadi Cement Limited 36/-
18. M/s Zeal Pak Cement Factory Limited