The strike beginning from Monday has been called by the Maharashtra unit of Confederation of Real Estate Developers of India (CREDAI). A similar strike was resorted to 13 years ago, when builders had started an indefinite purchase ban in 2001.
The builders have alleged cartelisation as all the cement manufacturers in consultation increased cement rates by Rs 70-100 over a month. Cement bags, which were priced between Rs 220 to Rs 240 are now being sold for Rs 300 to 330 to bulk consumers. This increases the cost of construction by Rs 100 per square foot, Nagpur unit of CREDAI said in a release.
Last week, Vidarbha Taxpayers Association (VTA), a city-based body taking up public issues, had written to the Competition Commission alleging a cartel by cement manufacturers. The letter also named some cement majors with units at Chandrapur, a hub for the industry.
Interestingly, Ambuja Cements claimed that it was not part of cement manufacturers association and cannot be regarded part of the cartel. On the prices, it says that the company fixes rates according to its own market analysis.
