Steel Cartel Allegations Put Tata Steel, JSW and SAIL Under Regulatory Scanner

Significant and shocking news has emerged for the Indian steel industry. In an anonymous investigation carried out by the competition authority of the country, the Competition Commission of India (CCI), Tata Steel, JSW Steel, and SAIL, an entirely government-owned steel producer, have been found guilty of "price fixation," or collusive pricing of steel. According to a Reuters report, a confidential order issued on October 6 found these companies guilty of violating anti-competition laws, and they are now facing the threat of heavy fines.

Although this is a case against companies, it also puts the cream of the corporate world on the stand as their top officials have been arraigned. The investigation report has named 56 top officials, including JSW Group's Managing Director Sajjan Jindal, Tata Steel's CEO TV Narendran, and four former chairmen of SAIL, for allegedly colluding with each other and fixing prices at various points between 2015 and 2023. The investigation involves 31 companies and associations and is the biggest case ever filed in the steel sector.

The investigation began in 2021 when the Coimbatore Corporation Contractors Welfare Association filed a complaint in a Tamil Nadu court. The allegations were that steel companies had increased prices by 55% in just six months and artificially restricted supply. Following this, the CCI initiated the investigation on court orders.

During the investigation, officials have also recovered digital evidence. According to an internal CCI document dated July 2025, WhatsApp chats have been discovered between regional groups of steelmakers, which clearly indicate "prices being manipulated and production cuts."

Since India is the world's second-largest crude steel producer and infrastructure spending is increasing, the cartel's influence is widespread. In terms of market share, JSW Steel (17.5%), Tata Steel (13.3%), and SAIL (10%) together control a significant portion of the market.

Under CCI regulations, the Commission can impose fines on these companies up to three times their profits or 10% of their turnover, whichever is higher. This penalty will apply for each year of the violation. Given that the companies reported billions of dollars in revenue in FY2025 (Tata Steel: $14.7 billion, JSW: $14.2 billion), the potential fines could be substantial.

The stock market reacted negatively to this news. Shares of JSW Steel fell 1.33%, SAIL 3.2%, and Tata Steel 0.7%. At present, this is the CCI's preliminary conclusion. Companies and officials will be given an opportunity to present their objections and arguments, which could take several months. Only after this will the CCI issue its final public order. According to sources, JSW and SAIL have denied the allegations before the CCI.

This investigation could prove to be a turning point in Indian corporate history. If the final order proves these allegations and penalties are imposed, it will not only impact the balance sheets of steel companies but will also spark a new debate between ease of doing business and regulatory strictness in India.