The Competition Commission of Pakistan adjourned hearing till December 5, 2008 in case against the cartelisation of cement manufacturers, allegedly involved in price hike of the commodity. Sources told Business Recorder on Wednesday that the Islamabad High Court (IHC) has given stay order against the show cause notices issued to cement manufacturers.
The IHC has directed the CCP to collectively hear cases of all cement manufacturers at one place ie Islamabad on December 5. The court would convene the hearing of the case on December 8. The IHC has also directed the CCP for not taking any adverse decision against cement manufactures till completion of hearing by the court.
Cement manufactures have filed a constitutional writ at the IHC to challenge the creation of the CCP. The units have collectively challenged the Competition Ordinance 2007, which formed basis for taking action against cartelisation and unfair trade practices.
Details revealed that the commission has issued show cause notices to the All Pakistan Cement Manufacturers Association (APCMA), Lahore against the cartelisation of cement manufacturers. The CCP fixed hearing of cases at Karachi, Lahore and Islamabad for the convenience of cement units located at different provinces.
Following the decision of the IHC, now the CCP would collectively hear cases of cement manufacturers at Islamabad. However, the commission has been barred from passing any adverse order against the units till finalisation of case by the IHC.
The CCP has completed investigation against cement manufacturers on the basis of evidence available during inspection of the APCMA headquarters at Lahore. The inquiry has been completed and subsequently show cause notices would be issued to all cement manufacturers.
The CCP has enough evidence to prove cartelisation against cement manufacturers and necessary proceedings would be initiated under the provisions of Competition Ordinance 2007. Sources said that the CCP is legally empowered to impose penalty up to 15 percent of the turnover or maximum penalty of Rs 50 million on each company involved in cartelisation.