CCI probes steel cartel as Tata Steel, JSW, SAIL face penalties for market rigging: Report

The Competition Commission of India (CCI) has determined that Tata Steel, JSW Steel and SAIL, among a total of 28 companies, breached antitrust regulations by collaborating to manipulate prices and restrict steel supply across the country between 2015 and 2023. The findings, revealed in a confidential order dated 6 October 2025, place 56 senior executives under scrutiny, including top leadership from these major firms, Reuters reported on Tuesday. The developments signal the most significant antitrust action yet in the Indian steel sector, which is critical to the nation’s infrastructure growth.

The CCI’s order confirmed that it "found the conduct of the parties to be in contravention" of Indian antitrust law and "certain individuals have also been held liable," the order stated. The investigation involved detailed scrutiny of company communications, with officials reviewing evidence such as WhatsApp messages that indicated coordination among industry groups. The watchdog now requires the implicated companies to submit audited financial statements spanning eight years, a standard step to assess potential penalties.

Steel companies face the possibility of penalties up to three times their profit or 10% of turnover for each year offences occurred, according to CCI rules. Individual executives identified in the case may also be liable for fines. JSW Steel’s standalone revenues reached $14.2 billion and Tata Steel’s $14.7 billion for the fiscal year ending March 2025, highlighting the scale of the companies involved. Share prices reflected the market’s response, with JSW Steel falling by 1.33%, SAIL by 3.2%, and Tata Steel declining up to 0.7%.

JSW Steel and SAIL have formally denied the allegations in submissions to the CCI, as confirmed by sources familiar with the proceedings. One source noted that JSW had provided a detailed response refuting the accusations. The CCI’s investigation began in 2021 after a group of builders accused nine steel makers of collectively reducing supply and inflating prices by 55% during a six-month period to March that year. The case eventually expanded to include 31 companies and dozens of executives.

Business Today could not verify the report at the time of filing this report. 

A critical component of the CCI’s evidence was the examination of WhatsApp messages. An internal CCI document from July 2025 stated that the messages "indicate that they are involved in fixing the prices/cutting down production," said the July document. These messages suggest a coordinated effort among regional steel manufacturers to influence market dynamics. The CCI opened the case after a complaint from the Coimbatore Corporation Contractors Welfare Association, which represents road and highway builders. A state court ordered the CCI to take "appropriate action" on the complaint of the association, whose members are involved in road and highway construction.

The steel industry is of considerable importance to India’s economy, with JSW Steel holding a 17.5% market share, Tata Steel 13.3%, and SAIL 10%, according to industry consultants. Other firms named in the CCI’s order include Shyam Steel Industries and Rashtriya Ispat Nigam. The findings will be reviewed by senior CCI officials, and both companies and executives have the opportunity to submit objections before a final order is issued and made public.