Coimbatore Corporation Contractors Welfare Association, Rep. by its Treasurer A. Ammasaiappan v. State of Tamil Nadu, Rep. by its Principal Secretary to Government, Public Works Department, Chennai
2019-08-07
S.MANIKUMAR, SUBRAMONIUM PRASAD
body2019
DigiLaw.ai
JUDGMENT : S. MANIKUMAR, J. 1. Coimbatore Corporation Contractors Welfare Association represented by its Treasurer A.Ammasaiappan, has sought for a Writ of Mandamus directing the second respondent to take appropriate action on the representation dated 06.02.2019 and the reminder dated 15.06.2019, and to fix the price of the cement bag after calculating the manufacturing cost and reduce the rate as in the case of other states viz., 1) Andhra Pradesh, 2) Karnataka and 3) Telungana. 2. Considering the limited prayer sought for, Mr.E.Manoharan, learned Additional Government Pleader appearing for the respondents 1 and 2, is put on notice. The petitioner has sent representation dated 06.02.2019 to the Chairman, National Anti-profiteering Authority, New Delhi regarding abnormal increase in cement price in Tamil Nadu and the same reads thus:- Coimbatore Corporation Contractors Welfare Association Date: 06.02.2019 To The Chairman National Anti-profiteering Authority, 6th floor, Tower-One, Jeevan Bharati, Connaught Place, New Delhi 110001 Sub: Abnormal increase in cement price in Tamil Nadu -reg Respected Sir, Seasonal greetings, on the onset we would like to introduce ourselves as CCCA (Coimbatore Corporation Contractors Association) a registered association vide registration no;01/2012 having 248 contractors from various departments as members executing Government projects & private projects in and around Tamil Nadu Total turnover of Our Association members is more than 2300 crores given direct and indirect employment for more than 240000 employees in Tamil Nadu by our members companies. We would like to bring to your kind notice on price of cement in Tamil Nadu, a bag of cement was sold for Rs.340/- until recently and there has been a sudden increase of 13.23% and now it is sold at Rs.385/- per bag of cement. The cement manufacturers of Tamil Nadu have formed a syndicate and done this abnormal increase of Cement price. This has put the government contractors, private builders and general public into hardship. This has effected 1.2 crore people associated directly or indirectly in the construction field, as it can lead to loss of livelihood for few of the labours. The cement rates have been raised more than 20% after implementation of GST instead of getting reduced, they blindly increased rates to obtain higher profit. We would like to bring to your kind notice rates of cements in our adjoining states for your kind perusal.
The cement rates have been raised more than 20% after implementation of GST instead of getting reduced, they blindly increased rates to obtain higher profit. We would like to bring to your kind notice rates of cements in our adjoining states for your kind perusal. Sl No Name of State Rate per Cement Bag 1 Andhrapradesh Rs.320/- 2 Karnataka Rs.335/- 3 Telangana Rs.320/- 4 Tamil Nadu Rs.385/- From the above table it is evident that price of cement is Rs.50/- more in Tamil Nadu compare to adjoining states. The cement manufacturers /dealers of neighboring states are willing to supply cements to following places in Tamil Nadu, Chennai, Nagercoil, Thenr, Coimbatore, Nilgiris and Hosur, however the cement manufacturer syndicate of Tamil Nadu do not allow them to supply in the state of Tamil Nadu . Due to the cement manufacturer syndicate the price of cement in Tamil Nadu is sky rocking comparing any other state in India. We request your goodself to kindly look into this matter and provide us a solution at your earliest. Kindly scrutinize the Tamil Nadu Cement manufacturing company accounts which reveals the truth. Looking forward for a favorable action or reply from your end. Thanking You Yours truly Encl: Rates of Cement neighbouring states 3. Petitioner has also sent another letter dated 26.03.2019 to the Chair Person, Competition Commission of India, New Delhi on the same issue, which reads thus:- To Ashok Kumar Gupta Chair Person Competition Commission of India, 9th Floor, Office Block - 1, Kidwai Nagar (East) Opposite Ring Road, New Delhi 110 023, India. Sub: 1. Abnormal increase in cement price in Tamil Nadu 2. Previously send similar subject letter dated on 06.02.2019 by our Association - reg. Respected Sir, We herewith submit that with reference to the above mentioned subject 1 & 2. We CCCA (Coimbatore Corporation Contractors Association) a registered association vide registration no:81/2012 having 248 contractors from various departments as members executing Government projects & private projects in and around Tamil Nadu Total turnover of our Association members is more than 2300 crores given direct and indirect employment for more than 240000 employees in Tamil Nadu by our members companies.
We CCCA (Coimbatore Corporation Contractors Association) a registered association vide registration no:81/2012 having 248 contractors from various departments as members executing Government projects & private projects in and around Tamil Nadu Total turnover of our Association members is more than 2300 crores given direct and indirect employment for more than 240000 employees in Tamil Nadu by our members companies. We would like to bring to your kind notice on price of cement in Tamil Nadu, a bag of cement was sold for Rs.340/- until recently and there has been a sudden increase of 13.23% and now it is sold at Rs.385/- per bag of cement. The cement manufacturers of Tamil Nadu have formed a syndicate and done this abnormal increase of Cement price. This has put the government contractors, private builders and general public into hardship. This has effected 1.2 crore people associated directly or indirectly in the construction field, as it can lead to loss of livelihood for few of the labours. The cement rates have been raised more than 20% after implementation of GST instead of getting reduced, they blindly increased rates to obtain higher profit. We would like to bring to your kind notice rates of cements in our adjoining states for your kind perusal. Sl. No. Name of State Rate Per Cement Bag 1. Andhrapradesh Rs.320/- 2. Karnataka Rs.335 /- 3. Telangana Rs.320/- 4. Tamil Nadu Rs.385/- From the above table it is evident that price of cement is Rs.50/- more in Tamil Nadu compare to adjoining states. The cement manufacturers/dealers of neighboring states are willing to supply cements to following places in Tamil Nadu, Chennai, Nagercoil, Theni, Coimbatore, Nilgiris and Hosur, however the cement manufacturer syndicate of Tamil Nadu do not allow them to supply in the state of Tamil Nadu. Due to the cement manufacturer syndicate the price of cement in Tamil Nadu is sky rocking comparing any other state in India. We request your goodself to kindly look into this matter and provide us a solution at your earliest. Kindly scrutinize the Tamilnadu Cement manufacturing company accounts which reveals the truth. We would like to inform that previously we have send a requisition letter to scrutinize the same. But we have till date not yet received a favourable reply from your side. Looking forward for a favourable action or reply from your end.
Kindly scrutinize the Tamilnadu Cement manufacturing company accounts which reveals the truth. We would like to inform that previously we have send a requisition letter to scrutinize the same. But we have till date not yet received a favourable reply from your side. Looking forward for a favourable action or reply from your end. Thanking You Yours truly, Sd/- XXXX Encl: Rates of Cement Bags neighbouring states. 4. On receipt of the representation dated 06.02.2019, the Special Secretary, Public Works Department, Chennai has forwarded the same in original to the Principal Chief Secretary, Industries Department, Chennai for action. The said G.O.Ms.2953/G2/2019-1, dated 04.04.2019 is reproduced hereunder. “TAMIL” 5. The petitioner seems to have sent representation dated 13.05.2019 to the Chairman, National Anti-Profiteering Authority, New Delhi and another representation dated 15.06.2019 to the Principal Secretary to the Government, Industries and Commerce Department, Secretariat, Chennai. Both letters are reproduced hereunder: Date: 13.05.2019 To The Chairman, National Anti-Profiteering Authority, 6th Floor, Tower-One, Jeevan Bharati, Connaught Place, New Delhi -110001. Respected Sir, Sub ; Abnormal increase in Cement Price in Tamil Nadu Ref : Coimbatore Corporation Contractor Welfare Association Letter nil Dated - 06.02.2019 We herewith submit that we have already represented the above subject matter as the reference 1st cited. We further state that inspite of our initiation regarding abnormal increase of Cement Price in Tamil Nadu when compared to other states which stats we have furnished previously, till date there was no proper response from your side. No action was taken against the defaulter manufacturer/dealers and no investigation was done against the fraudulent cement manufacturing companies. If this position prevails we are left with no other option then to initiate legal proceedings against the defaulters as well as against all other government entities who fails to take action against them. Therefore we humbly request to kindly initiate immediate steps to crub the mal practice done by cement manufacturing companies and scrutinized the Tamil Nadu Cement Manufacturer Companies in all and do the needful. We expect positive response from your side. Thanking you, Yours truly, Copy to: 1. Chief Minister’s Special Cell, Secretariat, Chennai 600 009. 2. Chief Secretary, Govt of Tamil Nadu, Namakkal Kavignar Maaligai, Fort.St.George, Chennai 600 009. 3. Revenue Department, Govt. of Tamil Nadu, Namakkal Kavignar Maaligai, Fort.St.George, Chennai 600 009. 4. Principal Secretary to Government, Public Works Department, Chennai 600 009.
Thanking you, Yours truly, Copy to: 1. Chief Minister’s Special Cell, Secretariat, Chennai 600 009. 2. Chief Secretary, Govt of Tamil Nadu, Namakkal Kavignar Maaligai, Fort.St.George, Chennai 600 009. 3. Revenue Department, Govt. of Tamil Nadu, Namakkal Kavignar Maaligai, Fort.St.George, Chennai 600 009. 4. Principal Secretary to Government, Public Works Department, Chennai 600 009. Date: 15.06.2019 To Principal Secretary to Government, Industries and Commerce Department, Secretariat, Chennai 600 009. Sir, Sub: Abnormal increase in cement price in Tamil Nadu - reg Respected Sir, On the onset we would like to introduce ourselves as CCCA (Coimbatore Corporation Contractors Association) a registered association vide registration no:81/2012 having 248 contractors from various departments as members executing Government projects & private projects in and around Tamil Nadu Total turnover of Our Association members is more than 2300 crores given direct and indirect employment for more than 240000 employees in Tamil Nadu by our members companies. We would like to bring to your kind notice on price of cement in Tamil Nadu, a bag of cement was sold for Rs.340/- until recently and there has been a sudden increase of 13.23% and now it is sold at Rs.385/- per bag of cement. The cement manufactures of Tamil Nadu have formed a syndicate and done this abnormal increase of cement price. This has put the government contractors, private builders and general public into hardship. This has effected 1.2 crore people associated directly or indirectly in the construction field, as it can lead to loss of livelihood for few of the labours. The cement rates have been raised more than 20% after implementation of GST instead of getting reduced, they blindly increased rates to obtain higher profit. We would like to bring to your kind notice rates of cements in our adjoining states for your kind perusal. Sl. No. Name of State Rate Per Cement Bag 1. Andhrapradesh Rs.320/- 2. Karnataka Rs.335/- 3. Telangana Rs.320/- 4. Tamil Nadu Rs.385/- From the above table it is evident that price of cement is Rs.50/- more in Tamil Nadu compare to adjoining states. The cement manufacturers/dealers of neighboring states are willing to supply cements to following places in Tamil Nadu, Chennai, Nagercoil, Theni, Coimbatore, Nilgiris and Hosur, however the cement manufacturer syndicate of Tamil Nadu do not allow them to supply in the state of Tamil Nadu.
The cement manufacturers/dealers of neighboring states are willing to supply cements to following places in Tamil Nadu, Chennai, Nagercoil, Theni, Coimbatore, Nilgiris and Hosur, however the cement manufacturer syndicate of Tamil Nadu do not allow them to supply in the state of Tamil Nadu. Due to the cement manufacturer syndicate the price of cement in Tamil Nadu is sky rocking comparing any other state in India. We request your goodself to kindly look into this matter and provide us a solution at your earliest. Kindly scrutinize the Tamilnadu Cement manufacturing company accounts which reveals the truth. We would like to inform that previously we have send a requisition letter to scrutinize the same. But we have till date not yet received a favourable reply from your side. Looking forward for a favourable action or reply from your end. Thanking You Yours truly, Sd/- XXXX 6. Contending inter alia that no further action is taken by the respondents 1 and 2, instant writ petition is filed for the relief stated supra. 7. Heard the learned counsel appearing for the parties and perused the materials available on record. 8. Price fixing is purely a policy decision, we are not inclined to delve into the merits of the contention. Considering the limited prayer to take action on the representation dated 06.02.2019 and the reminder dated 15.06.2019 respectively, we only direct the Principal Secretary to Government, Industries and Commerce Department, Secretariat, Chennai/second respondent, to consider the representations and pass appropriate orders in accordance with law, on merits, within a period of four weeks from the date of receipt of a copy of this order. 9. Accordingly the writ petition stands disposed of. No costs. Consequently connected miscellaneous petition is also closed.