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Ilango Dk: Steel விலையேற்றத்திற்கு CBI விசாரணை தேவை. வழக்கு பதிவு செய்ய வேண்டும். வழக்கில் CBI க்கு நோட்டீஸ். உயர் நீதிமன்றம் அதிரடி. ……………………………………… The Coimbatore Contractors Association filed a petition in Crl.O.P.No.6153 of 2021 before the High Court to direct the CBI to register FIR againt the Tata Steel Ltd, JSW Steel, Sail Steel,

by Sekar Reporter · March 26, 2021

[3/26, 13:30] Ilango Dk: Steel விலையேற்றத்திற்கு CBI விசாரணை தேவை. வழக்கு பதிவு செய்ய வேண்டும். வழக்கில் CBI க்கு நோட்டீஸ். உயர் நீதிமன்றம் அதிரடி.
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The Coimbatore Contractors Association filed a petition in Crl.O.P.No.6153 of 2021 before the High Court to direct the CBI to register FIR againt the Tata Steel Ltd, JSW Steel, Sail Steel, Vizage Steel, Tirumala TMT, Kamachi TMT, Agni TMT, Indrola Steel and Kisco TMT Companies for creating artificial scarcity of steels in order to increase the steel price for wrongful gain and thereby public and contractors are suffered. Today i.e.26.03.2021 the case was heard by Hon’ble Justice Mr.Jagadish Chandira and His Lordship passed an order directing the CBI, Delhi and 3 CBI offices in Chennai to conduct enquiry and file enquiry report with in two weeks and accordingly the was adjourned after two weeks.
S.Doraisamy, V.Elangovan
Advocates. 9003077888.
[3/26, 14:56] Sekarreporter1: MEMORANDUM OF CRIMINAL ORIGINAL PETITION
FILED UNDER SECTION 482 OF Cr.P.C
IN THE HIGH COURT OF JUDICATURE AT MADRAS
(Appellate Side Jurisdiction)

Crl.O.P.No. 6153 of 2021

Coimbatore Corporation Contractors
Welfare Association,
Registration No.81/2012,
Dynasty Apartment,
A7-Sundaresa Iyer Layout,
Trichy Road, Coimbatore – 641 018,
Rep. by its President
R.Udayakumar. .. PETITIONER

/VERSUS/
1.The Central Bureau of Investigation,
Plot No.5-B, 6th Floor, CGO Complex,
Lodhi Road,
Jawaharlal Nehru Stadium Marg,
New Delhi, Delhi – 110 003.

2.The Deputy Superintendent of Police,
Central Bureau of Investigation,
Shastri Nagar, Adyar,
Chennai – 600 020. .. RESPONDENTS

PETITION FOR DIRECTION

The address for service on the Petitioner is that of his Counsels, M/s. S.DORAISAMY, V.ELANGOVAN AND M.P.RAJAVELAYUTHAM Advocates at No.223, N.S.C.Bose Road, Y.M.C.A. Building, 2nd Floor, Chennai – 600 001.

The address for service on the Respondents is as stated above.

The petitioner above named begs to prefer this Memorandum of Criminal Original Petition for a direction directing the respondents to register a case on the complaint given by the petitioner dated 06.03.2021 and to proceed with the investigation according to law on the following among other

G R O U N D S
1. The petitioner submits that he is the President of the Coimbatore Corporation Contractors Welfare Association, which was registered as Registration No.81/2012 under the Societies Registration Act. The petitioner’s Association members are engaged in executing several government contracts viz. road works, construction works etc. in various departments viz. Public Works Department, Highways Department, Major Corporations, Water Board etc. The petitioner’s association contractors are executing all kind of works in Southern Region of India especially in Tamil Nadu and other States and Union Territories. More than 500 contractors and nearly 100 thousand of employees surviving in the above field by executing government project works. Nearly Rs.1 lakh crores of worth of government project and Rs.90 crores of private projects were executed by the petitioner’s association members.

2. While so, the steel manufacturers, forming a syndicate for profiteering, resulting in 55% hike in steel prices, by player (Steel Owners) during the past six months, making project unviable. It is further submitted that the steel companies have hiked price by Rs.2500 to Rs.2700 per tonne of both flat and long products for December on the back of rising iron ore prices and strong demand for steel. With the recent hike, the hot rolled coil price Ex-Mumbai have hit a record high of Rs.47000 a tonne, in line with a firm price trend in the international market.

3. The petitioner submits that the demand from real estate sector has also stated looking up following the government announcing a special package for real estate companies. Demand for steel has been holding strong ever since the government announced stimulus package and performance linked incentive of Rs. Two lakh core across ten sectors spread over 5 years to create an ecosystem that will add Rs.20 lakh core worth of manufacturing facilities.

4. It is submitted that most of the steel companies own iron ores and with no increase in labour and power charges, why should there be the increase in the steel prices. It is very difficult to understand. Similarly, cement industry is taking dvantage of the situation by exploiting it for the profit. The below mentioned steel companies are involved in cartel to activate the steel price. The said companies involved in criminal acts for illegal gain to fix the steel price in the market. Their act of criminal intention leads to heavy loss to national economy and leaves general public with hardship and sufferings. They manipulate in such a way to cheat not only the government but also public for illegal profit. Most of their illegal gain is left as you accounted money which leaves to black money growth and are not placed in any records as such. We have also enclosed a price list to show their cause along with material evidence.

5. This formation of cartel by the said companies was even intimated to Prime Minister office and it was stated by Hon’ble Minister Thiru. Nithin Gadkani in his press release stating that “A long term policy is needed for steel manufactures to form uniform policy and the price hike been in the range of 15-20%, it could have been justified but it was abysmally high. They can enhance productivity and earn profit. Else projects will become unviable” Nithin Gadkani Honorable Union Minister quotes as saying.

List of companies involved in cartel:

1. Tata Steel Ltd.
2. JSW Steel.
3. Sail Steel.
4. Vizag Steel.
5. Tirumala TMT.
6. Kamachi TMT.
7. Agni Steel.
8. Indrola Steel.
9. Kiscol TMT.

6. The petitioner submits that the said manufacturers of steel indulge directly and indirectly in monopolistic and restrictive trade practices, in an effort to control the price of steel by limiting and restricting the production and supply of steel as against the available capacity of production. The manufacturers have also been indulging in ‘collusive price fixing’ themselves to control the supply and determine or fix exorbitantly high prices of steel by forming a cartel in contravention of the provisions of Section 3 of the Competition Act.

7. The said manufacturers have also indulged in various anti-competitive activities and have collectively sought to control the supply of steel with the sole intention to control the supply, produce less steel and increase the market price of steel deliberately with an intention to gain wrongfully.

8. The petitioner submits that in order to create artificial scarcity, the manufacturers through their concerted actions also resort to the practice of restricting the supply of steel to builders and consumers, causing artificial increases in the price of steel. The artificial scarcity thereof in the market, steel prices have been increasing continuously. Steel manufacturing units usedto deliberately reduce their production and produced much less than their installed capacity to create an artificial scarcity and raise the prices of steel in order to earn abnormal profits and making the public to incur a wrongful loss.

9. In the normal course, in an unregulated market, if the demand is constant, and the production of the goods increases, then, the price of the products should reduce, particularly when the cost of production also reduces. However, in the present case, despite the fact that the production of steel increased and the cost of production substantially reduced.

10. The petitioner submits that the price of steel is rising faster than input prices. Controlling the supply of steel in the market by way of some tacit agreement. The manufacturers have indulged in collusive price fixing. They have entered into anti-competitive agreement among themselves to manipulate the supply and price of steel were found to be substantiated. They are causing wrongful gain for themselves and wrongful loss to the buyers.

11. The petitioner submits that section 23 of the Indian Penal Code defines wrongful gain and wrongful loss as follows:

23. “Wrongful gain”.—
“Wrongful gain” is gain by unlawful means of property to which the person gaining is not legally entitled. “Wrongful loss”.—“Wrongful loss” is the loss by unlawful means of property to which the person losing it is legally entitled.

Gaining wrongfully, losing wrongfully.—A person is said to gain wrongfully when such person retains wrongfully, as well as when such person acquires wrongfully. A person is said to lose wrong¬fully when such person is wrongfully kept out of any property, as well as when such person is wrong fully deprived of property.

12. It is submitted that the word dishonestly is defined in section 24 of the Indian Penal Code which read as follows:

24. “Dishonestly”.—
Whoever does anything with the intention of causing wrongful gain to one person or wrongful loss to another person, is said to do that thing “dishonestly”.

13. The petitioner submits that the manufacturers by fixing a higher price induces the members of our association in a fraudulent manner fix the higher price and compel the buyers to pay higher price than it is required and thereby the members of the petitioner’s association is deceived and incur a heavy loss. A person can be said to have done a thing dishonestly if he does so with the intention of causing wrongful ‘gain to one person or wrongful loss to another person. Wrongful loss is the loss by unlawful means of property to which a person is entitled while wrongful gain to a person means a gain to him by unlawful means of property to which the person gaining is not legally entitled.

14. Thus the manufacturers had conspired themselves to create artificial scarcity and fix the steel price in order to gain wrongfully and make the public to incur wrongful loss and there thereby derive the public the public to pay more than what is required and thus the public are cheated and the manufacturers are liable to be proceeded against for cheating the public.

15. It is submitted that hence the petitioner lodged a complaint on 06.03.2021 to the respondents to register a case and investigate the same and prosecute against the above steel companies. However till date no case has been registered against the said steel companies who have conspired together and created artificial scarcity and fix the steel price in order to gain wrongfully and cheating the public.

16. The petitioner submits that when the cognizable offence is made out, the respondents ought to have registered the case against the steel companies and proceeded with the investigation in accordance with law. However, in this case though there are incriminating materials available to register the case, the respondents have not taken any action to register the case on the complaint given by the petitioner. hence the respondents may be directed to register the case, otherwise the petitioner will be put to great loss and hardship.

In such circumstances, it is prayed that this Hon’ble Court may be pleased to direct the respondents to register the case on the complaint given by the petitioner dated 06.03.2021 and proceed with the investigation in accordance with law and pass such further or other orders and thus render justice.

Dated at Chennai, this the 22nd day of March 2021

-COUNSEL FOR PETITIONER-

IN THE HIGH COURT OF JUDICATURE AT MADRAS
(Appellate Side Jurisdiction)

Crl.O.P.No. 6153 of 2021

/VERSUS/
1.The Central Bureau of Investigation,
Plot No.5-B, 6th Floor, CGO Complex,
Lodhi Road,
Jawaharlal Nehru Stadium Marg,
New Delhi, Delhi – 110 003.

2.The Deputy Superintendent of Police,
Central Bureau of Investigation,
Shastri Nagar, Adyar,
Chennai – 600 020. .. RESPONDENTS

INDEX TO TYPED SET OF PAPERS

Sl. No. Date Description Page

1. 06.03.2021 Complaint to the 1st respondent

2. 06.03.2021 Complaint to the 2nd respondentS

2. . . . TMT Price Fluctuation

Certified that the copies furnished herein are true copies.

Dated at Chennai, this the 22nd day of March 2021.

– COUNSEL FOR PETITIONER –