Displaying items by tag: Legal
India: The Kerala High Court is investigating how files have disappeared from its premises regarding a corruption case into Malabar Cement. The files were part of a 2015 petition, seeking a Central Bureau of Investigation probe into alleged instances of corruption in the cement producer, according to the Press Trust of India. Justice B Sudheendra Kumar described the situation as ‘alarming.’
In early 2017 the Vigilance and Anti-Corruption Bureau, a corruption body in the state of Kerala, arrested Prakash Joseph, a legal officer at Malabar Cements, in relation to a loss of US$0.4m. Previous to this in mid-2016 the Vigilance and Anti-Corruption Bureau arrested K Padmakumar, the managing director of Malabar Cements, on charges of corruption and irregularity.
India: UltraTech Cement’s costs are growing over its offer to buy Binani Cement. A legal counsel in the National Company Law Tribunal (NCLT) told the Business Standard newspaper that the subsidiary of Aditya Birla Group is liable to pay lenders around US$0.22m/day in additional interest until the takeover is completed. Any decision made by the NCLT will still have to go before the Supreme Court further delaying the process.
UltraTech Cement made a direct bid of US$1.12bn for the bankrupt Binani Cement following an auction in March 2018 that was originally won by Dalmia Bharat. However, Dalmia Bharat’s offer did not include paying interest to lenders. Binani Cement’s insolvency resolution process has overrun its 270-day time frame by nearly two months.
Italian court confirms fines for cement producers
14 June 2018Italy: The Administrative Regional Court of Lazio has confirmed fines on local cement producers for cartel-like behaviour after an appeal process. Italcementi has been fined Euro84m, Buzzi Unicem has been fined Euro60m and Cementi Moccia has been fined Euro0.69m, according to the ANSA news agency.
The Italian Competition Authority (AGCM) originally imposed total fines of over Euro180m in late 2017 upon Italcementi, Buzzi Unicem, Colacem, Cementir, Sacci, Holcim, Cementirossi, Barbetti, Cementeria di Monselice, Cementizillo, Calme, Cementi Moccia, TSC and the Italian Cement Association (AITEC) for allegedly coordinating sales prices and agreeing market share from June 2011 to January 2016. The other cement companies are currently awaiting the outcome of their own appeals.
Colombia: Ricardo Naya, the president of Cemex Colombia, says that he expects that the company's new US$356m cement plant at Maceo in Antioquia will go into operation at the end of 2018. At present the company is trying to guarantee with the Regional Autonomous Corporation of Antioquia environmental agency that it will have the necessary permits to operate the plant at full capacity, according to the La Republica newspaper.
In 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights and benefits of the tax free zone for the project. The US Department of Justice has also investigated the project.
Cemex Colombia is also fighting a fine by the Superintendent of Industry and Commerce (SIC) for alleged market collusion in the cement business. It agreed to pay the fine but has appealed to the Dispute Tribunal.
India: The Supreme Court has said that the final sale of Binani Cement cannot complete without its approval. It added that no decision on the sale will now be made until at least early July 2018. However, it has allowed the debt resolution process to continue, according to the Press Trust of India. UltraTech Cement and Dalmia Bharat have both made bids for the bankrupt cement producer but they have fought each other legally over the process.
UltraTech wins legal case against fake cement brand
05 June 2018India: UltraTech Cement has won a copyright case against a company selling cement brands similar to its own. The cement producer argued at the Bombay High Court that Everest Industries was selling products that were using marks deceptively similar to its own registered mark ‘UltraTech,’ according to the Mint business newspaper. UltraTech said that Everest was using the mark ‘Ultratruf-The Builders Choice’ with similar fonts and colours to its own mark. The court also observed that Everest was deceptively using another brand name, ‘Ambruja’, similar to that of Ambuja Cements.
The court ordered Everest Industries not to use the mark in any manner in mid-May 2018. It also asked it to pay costs and damages.
India: Binani Cement's committee of creditors (COC) has accepted a bid by UltraTech Cement. The COC will now submit UltraTech Cement’s plan to the National Company Law Tribunal (NCLT) for approval, according to the Times of India newspaper. However, the Supreme Court is also looking at the case following a petition by rival bidder Dalmia Bharat.
UltraTech Cement made a direct bid of US$1.12bn for the bankrupt Binani Cement following an auction in March 2018 that was originally won by Dalmia Bharat. Dalmia Bharat has disputed UltraTech Cement’s offer and the two companies have conducted legal campaigns to reinforce their respective claims.
Spain: FYM, a subsidiary of HeidelbergCement, is facing a potential legal battle to expand the quarry at its La Araña cement plant near Malaga. It has applied to the local government for a compulsory order to buy land at the site, according to the Diario Sur newspaper. FYM says that it has the authorisation to use up to 176 hectares near its plant for mineral extraction but that it is only using 43 hectares at present. The agreement in place allows the cement producer to buy land on a compulsory basis if an agreement can’t be reached with the land owners. However, the current land owner and FYM have disagreed over the price.
Zambia: The Ventriglia family has been awarded full ownership of Zambezi Portland Cement by the High Court of Zambia. The resolution follows a 10-year battle between the Ventriglias and businessman Rajan Mahtani, according to the Times of Zambia. Mahtani’s company Finsbury Investments claimed a majority share in the cement producer but the Ventriglia family objected, asserting full ownership of the company.
Barbados: Trinidad Cement and its Barbadian subsidiary Arawak Cement have taken legal action against the Government of Barbados over allegedly breaking the Caribbean Community Single Market and Economy. The complaint relates to accusations that the country broke import duties on cement, according to Barbados Today. The government has been accused of reducing import tariffs to 5% from 60%.
Arawak Cement and competitor Rock Hard Cement have battled for the local market since the entry of the latter company in the market in 2015. Trinidad Cement has also taken action against Turkish cement importers previously.