By Aditya Kalra
NEW DELHI, – An Indian court has put an antitrust investigation into state-run Steel Authority of India on hold after the company challenged the Indian watchdog for procedural lapses, according to court records and the company’s legal filings.
In the most high-profile antitrust case involving India’s steel sector, an investigation by the Competition Commission of India found 28 firms colluded on steel prices, Reuters exclusively reported in January. These included Tata Steel, JSW Steel and state-run SAIL and RINL.
Online Madras High Court records show the judge in an April 21 hearing put the investigation into SAIL on hold. The ruling and SAIL’s arguments in court are being reported for the first time by Reuters.
SAIL did not respond to a request for comment.
SAIL’s non-public filing reviewed by Reuters on Friday showed it told the Madras High Court that it was “exonerated” in the first investigation report drafted by investigators in January 2024, but senior CCI officials “wrongfully” invoked Indian law provisions to conduct a further investigation.
The watchdog’s investigation team then drafted a supplementary report last year which found wrongdoing by SAIL, but used the same material that was earlier cited in exonerating the company, the company argued.
“Principles of natural justice mandate that any adverse or prejudicial action, including the re-opening of an investigation after exoneration, must necessarily be preceded by notice,” SAIL said in the filing.
The CCI did not respond to Reuters queries. The case will next be heard on June 10.
The CCI investigation had found that Tata Steel, JSW Steel, SAIL and RINL disclosed their pricing plans to rivals and coordinated production cuts to reduce supplies, Reuters has reported.
The watchdog had reviewed dozens of WhatsApp chats, including from groups named “Friends of Steel”, “Tycoons” and “Steel Live Market”.
(Editing by Elaine Hardcastle)
