SAIL Secures Court Injunction in Steel Industry Antitrust Investigation

Indian Court Halts Antitrust Investigation into State-Run Steel Authority of India

In a significant development, the Madras High Court has put on hold an antitrust investigation into the state-run Steel Authority of India (SAIL) following a challenge by the company citing procedural lapses. According to court records and SAIL's legal filings, the investigation was initially launched by the Competition Commission of India (CCI) in January, as part of a wider probe into the steel sector.

The investigation, which has been described as the most high-profile antitrust case involving India's steel sector, found 28 firms, including Tata Steel, JSW Steel, and SAIL, colluding on steel prices. The CCI's investigation team reviewed dozens of WhatsApp chats, including from groups named "Friends of Steel", "Tycoons", and "Steel Live Market", as part of its probe.

SAIL's non-public filing, reviewed by Reuters, reveals that the company was initially "exonerated" in the first investigation report drafted by investigators in January 2024. However, senior CCI officials "wrongfully" invoked Indian law provisions to conduct a further investigation, which found wrongdoing by SAIL. The company argued that the watchdog's supplementary report used the same material that was earlier cited in exonerating the company, and that the principles of natural justice require that any adverse or prejudicial action must be preceded by notice.

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Comparison of CCI Investigation Findings

The CCI did not respond to Reuters queries. The case will next be heard on June 10. SAIL did not respond to a request for comment. The CCI's investigation had found that the companies involved had disclosed their pricing plans to rivals and coordinated production cuts to reduce supplies.