Jaiprakash Associates , has responded to the allegations of cartel formation in the cement industry by saying that they are false and that market forces determine the price of the construction material in the country.

The Competition Commission of India has alleged that the cement makers in country have formed cartels and has imposed a heavy fine on the firms. The fine imposed by the commission runs in to hundreds of crores for the firms depending upon the amount of profit made by them. CCI has imposed a whopping Rs 6,307 crore fine on 11 leading cement makers for forming price cartel.

Industry body CMA is also facing a fine of Rs 73 lakh and JAL faces the highest fine of Rs 1,323.6 crore followed by Ultratech Cements at Rs 1,175.49 crore, Ambuja Cements at Rs 1163.91 cror) and ACC at Rs 1,147.59 crore.

"Competition Commission of India's order appears to be based more on technical points than on ground realities. In an industry where there is full-throttled competition, where the prices are determined by the market forces and consumption is driven by economy, alleging cartelisation is not justified," the company said in a statement.

JAL also pointed out that there are 45 cement companies and more than 140 plants across the country and cartelization allegations are false. Some cement manufacturers are considering approaching the Competition Appellate Tribunal against the order by the Competition Commission of India.