With the overhang of a hefty penalty by the Competition Commission of India (CCI) on alleged cartelisation, Adani Group companies, Ambuja Cements and ACC, have withdrawn their membership from the Cement Manufacturers’ Association.
The development comes when the Adani group is still attempting to battle out allegations levelled by the US-based short-seller Hindenburg Research.
Lowering penalty
The group has deleveraged the balance sheet by repaying $2.65 billion and the last thing it wants now is to fight a case on price cartelisation in the cement business, sources said. Last September, Adani Group had acquired both Ambuja Cements and its subsidiary ACC through a deal worth $6.4 billion to become the country’s second largest cement maker.
The withdrawal of CMA membership will also provide an opportunity for Adani group companies to plead for lowering the penalty, though the Supreme Court will take the final call, said the source. While the Adani group took over the liabilities…