India’s competition watchdog has uncovered a years-long price-fixing conspiracy involving the nation’s top steel producers, putting industry giants and their top-tier executives at risk of multi-billion dollar penalties.
The Competition Commission of India has found market leaders Tata Steel, JSW Steel, and state-run SAIL, along with 25 other firms, guilty of breaking antitrust laws by colluding on selling prices. According to a confidential regulatory order dated October 6, 2025, and reported for the first time Tuesday (January 6, 2026), the cartel-like activity went on for at least eight years, from 2015 to 2023, artificially driving up construction costs across the country.
The CCI investigation, the most high-profile in Indian steel sector history, holds 56 senior executives personally liable for the collusion.
- The Power Trio: The three primary targets JSW Steel (17.5% market share), Tata Steel (13.3%), and SAIL (10%) account for over 40% of India’s domestic steel market.
- Top Leadership Named: The report explicitly names high-profile industry figures as liable, including Sajjan Jindal (MD, JSW Steel), T.V. Narendran (CEO, Tata Steel), and four former chairpersons of SAIL.
- Evidence Unearthed: Internal CCI documents reveal investigators recovered WhatsApp messages exchanged within regional industry groups that suggested explicit coordination on production cuts and price hikes.
News of the breach sent steel stocks tumbling Tuesday afternoon. SAIL saw the sharpest drop, falling 3%, while JSW Steel dropped 1.26%. Tata Steel stayed relatively stable but finished the day in the red.
Under Indian antitrust rules, the penalties for cartelization are severe:
- Corporate Fines: The CCI can impose penalties of up to three times the profit or 10% of turnover for each year of wrongdoing, whichever is higher.
- Executive Liability: Individual executives found liable can also face significant personal fines.
The case was triggered in 2021 by the Coimbatore Corporation Contractors Welfare Association, which alleged steel companies had hiked prices by 55% in just six months while artificially restricting supply to builders. A Tamil Nadu state court eventually directed the CCI to take “appropriate action” after the public prosecutor identified the issue as a competition law violation.
Both JSW Steel and SAIL have reportedly denied the allegations before the watchdog, with JSW already submitting a formal response to the preliminary findings.
The findings mark a critical “preliminary stage.” The companies and executives now have the chance to submit formal objections and comments. These will be reviewed by senior CCI officials in a process expected to last several months before a final, public order is issued. If the findings are upheld, it could represent the largest antitrust fine in Indian corporate history.
Also Read / OpenAI eyes massive India expansion in strategic talks with Tata Group.
Leave a comment