Steel Cartel Probe: CCI Links Tata, JSW to Price Fixing

Introduction

An investigation by the Competition Commission of India (CCI) has found evidence suggesting four of India's largest steel producers—Tata Steel, JSW Steel, Steel Authority of India Limited (SAIL), and Rashtriya Ispat Nigam Limited (RINL)—colluded on pricing and coordinated production cuts. The findings, detailed in a confidential investigation report, point to cartel-like behaviour between 2018 and 2023, potentially exposing the companies and their top executives to significant financial penalties.

The Core Allegations

The CCI's report, drafted in April 2025, concludes there is "enough circumstantial evidence" of concerted efforts by the four steel giants. Together, these companies command a significant portion of the domestic market, with consultancy BigMint estimating their combined share at 44.4%. The investigation alleges that the firms shared sensitive pricing information in advance, effectively influencing market prices and undermining fair competition. This high-profile antitrust case, which began in 2021, has now reached a critical stage, with senior officials at the commission reviewing the detailed findings.

The Digital Evidence Trail

A central pillar of the CCI's case is digital evidence retrieved from industry raids conducted in 2022. Investigators analyzed dozens of WhatsApp chats from groups with names like "Friends of Steel," "Tycoons," and "Steel Live Market." While the report does not mention messages directly written by executives from the four main companies, it states that investigators found a strong correlation between the information shared in these chats and the subsequent price changes implemented by the firms. For instance, one message from 2020 read: "All main producers like jsw, tata ... and sail planning to increase TMT price by 1500 to 2000 pmt from 1st Nov." Another message in 2022 noted a price increase by SAIL and suggested that "all primary producers are likely to increase prices."

Coordinated Production Cuts

Beyond price coordination, the CCI report also points to deliberate supply management. The investigation found evidence of a "controlled reduction in production by Tata, JSW, SAIL and RINL to the tune of 16% to 22%" during the 2020-21 period. This allegation is supported by internal documents from RINL. One of RINL's presentations to a government committee in 2020 noted that there were "production cuts by manufacturers." The CCI report described these findings as a "clear-cut corroboration/admission of allegation of production cuts by the said big steel manufacturers."

Key Investigation Details

Company Responses and Denials

In response to the allegations, Tata Steel issued a statement to Reuters, saying it "categorically denies any wrongdoing." The company maintained that it determines its prices independently based on prevailing market conditions and other factors. Executives from JSW, SAIL, and RINL also denied any wrongdoing during the investigation proceedings, according to the report. The companies have been asked to submit their financial details, a step typically taken for penalty calculations.

High-Profile Executives Implicated

The CCI has also held senior leadership liable for the alleged collusion. The list includes JSW Steel's Managing Director Sajjan Jindal, Tata Steel's CEO T.V. Narendran, along with four former chairpersons of SAIL and three from RINL. This move signals the regulator's intent to enforce individual accountability in antitrust cases.

Market Impact and Economic Significance

As the world's second-largest producer of crude steel, India's steel sector is fundamental to its economic growth, particularly with rising infrastructure spending. Any anti-competitive behaviour in this industry can have widespread effects, potentially inflating costs for construction, manufacturing, and major government projects. The case underscores the increasing reliance of regulators on digital evidence to uncover and prosecute complex corporate collusion.

The Road Ahead

The investigation's findings are currently under review by senior CCI officials. The implicated companies and their executives will have an opportunity to submit their final objections and responses. This process is expected to take several months, after which the CCI will issue a final, public order. If the findings are upheld, the penalties could be substantial, setting a significant precedent for competition law enforcement in India's core industrial sectors.