New Delhi | A major case of alleged collusion has surfaced in India’s steel sector. The Competition Commission of India (CCI) has indicated in its probe that Tata Steel, JSW Steel and state-run SAIL, along with several other players, may have coordinated prices and distorted fair competition in the market.
According to details available so far, the investigation covers the period from 2015 to 2023 and names 31 companies, multiple industry bodies and 56 senior executives. It is being viewed as one of the most high-profile probes in the domestic steel industry.
From a single complaint to a nationwide investigation
The case began in 2021 after a builders’ association in Tamil Nadu approached a court alleging that steel companies were deliberately restricting supply and increasing prices together.
Following the complaint, CCI conducted raids at several offices, collected documents and gradually expanded the scope of its investigation to cover a large part of the industry.
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CCI’s stance “Violation of competition law”
In its October order, the CCI observed that the conduct of some companies and officials appeared to be in violation of Indian competition law.
The findings will now undergo internal review, after which the concerned companies and executives will be allowed to present their responses. A final order will be issued only after this process is completed.
Prominent names mentioned in documents
Documents linked to the investigation refer to several well-known industry figures, including:
- Sajjan Jindal, Managing Director, JSW Steel
- T. V. Narendran, CEO, Tata Steel
- Four former chairpersons of SAIL
JSW Steel declined to comment on the matter, while other companies and individuals have not issued formal responses yet.
WhatsApp chats cited as potential clues
Reports suggest that CCI examined some WhatsApp conversations among regional industry groups. These chats reportedly hinted at coordination on prices and production limits though the complete evidence has not been made public.
What penalties could follow?
India is the world’s second-largest producer of crude steel, and violations in this space attract stringent consequences. Under CCI rules, penalties may go up to:
- 10% of a company’s total turnover, or
- three times its profits— whichever is higher.
- In addition, individual executives may also face separate monetary penalties.
Stock market reacts
After reports of the probe surfaced, shares of Tata Steel, JSW Steel and SAIL witnessed selling pressure. The Nifty Metal index also slipped into the red as investors weighed the risk of possible penalties and prolonged legal proceedings.
What lies ahead?
The next phase depends entirely on the CCI’s final decision. If the allegations are eventually proven:
- heavy fines could be imposed,
- individual accountability may be enforced, and
- pricing strategies across the broader metals space could undergo a rethink.
For now, both the market and the industry are closely watching CCI’s next move.
