The apex body of developers, CREDAI, has threatened to file a complaint with the Competition Commission of India (CCI) against the continuous rise in cement prices and has alleged the existence of a cement cartel operating actively in the country.
Lalit Kumar Jain, chairman of CREDAI who is also CMD of Kumar Urban Development, said CREDAI will consider filing a complaint on the price hike as this created pressure on developers to increase sale price of homes. "Considering that buyer sentiment is low, the cement price rise defies logic, so CREDAI will consider going to the CCI to seek intervention against the cartel of cement manufacturers, he said. Cement prices have increased from R210 to R275 over the past few days, and indications are they will go up to R325 per bag in the near future, he said. A rise of R50 per bag leads to rise in cost of construction by R20 to R25 per sqft. He said the prices of cement suddenly going sky high made them believe a cartel was active.