CREDAI NCR decides to boycott Shree Cement for arbitrary price hike

NEW DELHI: The NCR chapter of real estate industry body Confederation of Real Estate Developers' Associations of India (CREDAI) has decided to boycott Shree Cement on alleged complaints of arbitrary increase in prices and creating false shortage in the market. 

The body is also planning to file a complaint against the company with the Competition Commission of India (CCI). 

"Shree Cement is arbitrarily increasing prices and stopping supply in between, demanding a price revision, despite taking an advance. This is unacceptable to us and thus we have asked our members to boycott the company," said a CREDAI NCR spokesperson. "We will definitely move CCI very soon for this," he added. 

The builder body also alleged that cement manufacturers are creating a false shortage of cement in the market. 

"Through excuses such as plant not functioning properly, issues with transportation, etc, these companies are not meeting the delivery deadlines, thereby affecting the builders' construction timelines," the spokesperson said. 

CREDAI's Western UP chapter last week also complained of cement price cartelisation happening in the market with companies increasing prices from Rs 190 per bag to Rs 300 per bag in last four months and delaying delivery. 

The real estate sector, especially the residential segment, has been witnessing slow sales for the past couple of years due to low consumer sentiments, and a trust deficit between buyers and developers due to several cases of project delays. 

CREDAI had moved CCI against cement manufacturers in October last year, accusing them of cartelisation. The body's NCR chapter had also stopped procurement of cement from Ultratech and Lafarge, alleging that the firms are indulging in cartelisation and malpractices. However, the ban was later removed when the companies reduced their cement prices. 

The Builders' Association of India (BAI) had also filed a complaint with the CCI in 2010 against 10 top cement manufacturers and the Cement Manufacturers' Association (CMA). CCI had imposed a penalty of Rs 6,300 crore on these cement companies in June 2012. The Competition Appellate Tribunal (Compat) stayed the order in 2013, but asked the companies to deposit 10% of the amount till the time their appeal is pending. The case is still pending. 

Credai NCR is one of the largest chapters of the organisation comprising about 220 members from Delhi, Noida, Yamuna Expressway, Gurgaon, Ghaziabad, Rajnagar Extention, Faridabad Neemrana, Bhiwadi and other adjoining areas.

Source: ET realty