LKS Case

COMPETITION COMMISSION OF INDIA
Case No. 24 of 2017
In re:
Federation of Corrugated Box Manufacturers of India Informant No. 1

Andhra Pradesh Corrugated Box Manufacturers Association Informant No. 2
Uttar Pradesh Corrugated Box Manufacturers Association Informant No. 3
And
Gujarat Paper Mills Association Opposite Party No. 1

Ramji Board and Paper Mill Private Limited Opposite Party No. 2
Kaygaon Paper Mills Limited Opposite Party No. 3
Umesh Board and Paper Mills Private Limited Opposite Party No. 4
Hari Sharnam Trade Links Private Limited Opposite Party No. 5
Vaibhav Paper Boards Private Limited Opposite Party No. 6
Urvashi Pulp and Paper Mills Private Limited Opposite Party No. 7
Gayatri Paper Mill Opposite Party No. 8
Anantkrupa Paper Products Opposite Party No. 9
Nice Papers Limited Opposite Party No. 10
Awade Industries Private Limited Opposite Party No. 11
Hardoli Paper Mills Limited Opposite Party No. 12
Devang Paper Mills Private Limited Opposite Party No. 13
Sukraft Papers Private Limited Opposite Party No. 14
Ravi Kiran Paper Mills Private Limited Opposite Party No. 15
Bedse Pulp Conversion Industries Private Limited Opposite Party No. 16
Khandesh Paper Mills Private Limited Opposite Party No. 17
Godavari Pulp and Paper Mills Private Limited Opposite Party No. 18
Sunshine Pap–Tech Private Limited Opposite Party No. 19
Padmavati Pulp and Paper Mills Opposite Party No. 20
Sunshine Kraft Opposite Party No. 21
Banganga Paper Mills Opposite Party No. 22
Swastik Pulp and Papers Private Limited Opposite Party No. 23
Case No. 24 of 2017 1

Best Paper Mills Private Limited Opposite Party No. 24
Saiyed Paper Mills Limited Opposite Party No. 25
Shree Gajanan Paper and Boards Private Limited Opposite Party No. 26
Shree Ajit Pulp and Paper Limited Opposite Party No. 27
R. A. Shaikh Paper Mills Private Limited Opposite Party No. 28
Shweta Paper Industries Private Limited Opposite Party No. 29
Sukraft Paper Mills Private Limited Opposite Party No. 30
New Bombay Paper Mills Private Limited Opposite Party No. 31
Super Deluxe Paper Mills Private Limited Opposite Party No. 32
S. K. Paper Opposite Party No. 33
Sezon Paper Opposite Party No. 34
Radheshyam Paper Mills Private Limited Opposite Party No. 35
Neelkanth Pulp and Paper Boards Opposite Party No. 36
Shah Paper Mills Limited (Unit I & II) Opposite Party No. 37
Astron Paper and Board Mill Limited Opposite Party No. 38
Mac Paper Mill Opposite Party No. 39
Somnath Kraft Mill Private Limited Opposite Party No. 40
Resonance Paper Mill Private Limited Opposite Party No. 41
Riddhi Siddhi Recyclers Private Limited Opposite Party No. 42
Aryan Paper Mills Private Limited Opposite Party No. 43
Surani Paper Private Limited Opposite Party No. 44
Latin Paper Industries LLP Opposite Party No. 45
Axle Paper Limited Opposite Party No. 46
Samruddhi Paper and Pulp Conversion Private Limited Opposite Party No. 47
Laxmi Board and Paper Mill Private Limited Opposite Party No. 48
Bellona Paper Mill Private Limited Opposite Party No. 49
Supreme Kraft Private Limited Opposite Party No. 50
Akshat Papers Limited Opposite Party No. 51
Aricon Papers Private Limited Opposite Party No. 52
Karan Paper Mill Opposite Party No. 53
Revival Paper Mills Private Limited Opposite Party No. 54
Apna Paper Mills Private Limited Opposite Party No. 55
Case No. 24 of 2017 2

Sachin Paper Mills Private Limited Opposite Party No. 56
Maheshwari Logistics Limited (Paper Division) (Daman
Opposite Party No. 57
Ganga Paper Limited)
Sayaji Paper Private Limited Opposite Party No. 58
Sankalp Paper Industries Private Limited Opposite Party No. 59
Lucky Star Paper Mills Opposite Party No. 60
Gayatri Shakti Paper and Boards Limited (Unit – II) Opposite Party No. 61
Kwality Pulp and Paper Mills Opposite Party No. 62
Northern India Paper Mills Association Opposite Party No. 63
Bindlas Duplex Limited Opposite Party No. 64
Paswara Papers Limited Opposite Party No. 65
Silverton Pulp and Papers Private Limited Opposite Party No. 66
Maruti Papers Ltd. Opposite Party No. 67
RAC Paper Ltd. Opposite Party No. 68
Siddheshwari Industries Private Limited Opposite Party No. 69
Tehri Pulp and Paper Limited Opposite Party No. 70
Garg Duplex and Paper Mills Private Limited Opposite Party No. 71
Genus Paper and Boards Limited Opposite Party No. 72
Nikita Papers Limited Opposite Party No. 73
Dev Priya Industries Private Limited Opposite Party No. 74
Haripur Paper Company Opposite Party No. 75
Silvertoan Papers Limited Opposite Party No. 76
Sidharth Papers Private Limited Opposite Party No. 77
Mahalaxmi Kraft and Tissues Private Limited Opposite Party No. 78
Ashoka Kraft Paper Mills LLP Opposite Party No. 79
Hyderabad Kraft Paper Mills Association Opposite Party No. 80
Sharma Papers Private Limited Opposite Party No. 81
Tirumala Venkateshwara Paper Board Private Limited Opposite Party No. 82
Sai Tirumala Papers Private Limited Opposite Party No. 83
Sri M. K. Paper Mills Private Limited Opposite Party No. 84
Decor Paper Mills Limited Opposite Party No. 85
Bahubali Boards Private Limited Opposite Party No. 86
Case No. 24 of 2017 3

Classic Papers Opposite Party No. 87
Karanja Industries Private Limited Opposite Party No. 88
Venkata Padmavathi Paper Mills Private Limited Opposite Party No. 89
Kanishka Paper and Pulp Private Limited Opposite Party No. 90
Sri Chimmanlal Paper Mills Opposite Party No. 91
Rajahmundry Paper Mills Private Limited Opposite Party No. 92
Sri Luxmi Tulasi Agro Paper Private Limited Opposite Party No. 93
Peproll Paper Mills Private Limited Opposite Party No. 94
Limra Paper Mills Private Limited Opposite Party No. 95
V. L. Papers Private Limited Opposite Party No. 96
Vamshadhara Paper Mills Limited Opposite Party No. 97
Hyderabad Paper Mills Private Limited Opposite Party No. 98
Wings Papers and Board Mills Private Limited Opposite Party No. 99
Suvarna Durga Paper Mills Private Limited Opposite Party No. 100
Vijay Anand Kraft Papers Private Limited Opposite Party No. 101
SBS Paper Boards Private Limited Opposite Party No. 102
Sri Sai Strength Papers Opposite Party No. 103
Reliable Paper and Boards Mills Private Limited Opposite Party No. 104
Venkata Naga Lakshmi Paper Mills Private Limited Opposite Party No. 105
Sindhura Paper Products Private Limited Opposite Party No. 106
South Indian Kraft Paper Mills Association Opposite Party No. 107
Vishnu Paper Products Private Limited Opposite Party No. 108
Sripathi Paper and Boards Private Limited Opposite Party No. 109
Sri Pariyur Amman Kraft Papers Private Limited Opposite Party No. 110
The South India Paper Mills Limited Opposite Party No. 111
Suryaans Paper Opposite Party No. 112
Sastha Paper Mills Private Limited Opposite Party No. 113
Kovai Maruthi Papers and Boards Private Limited Opposite Party No. 114
Jagdhatri Papers Private Limited Opposite Party No. 115
Sri Andal Paper Mills Private Limited Opposite Party No. 116
Akshera Papers Opposite Party No. 117
Aruldevi Paper Mills Private Limited Opposite Party No. 118
Case No. 24 of 2017 4

Vaithieswara Papers and Boards Private Limited Opposite Party No. 119
Indian Agro and Recycled Paper Mills Association Opposite Party No. 120
CORAM
Ashok Kumar Gupta

Chairperson
Sangeeta Verma
Member
Bhagwant Singh Bishnoi

Member
Present:
For Informant No. 1/IP-1 (Federation of

Corrugated Box Manufacturers of India) Ms. Charanya Lakshmikumaran, Ms.
For Informant No. 2/IP-2 (Andhra Pradesh Neelambera Sandeepan, Ms. Barkha
Corrugated Box Manufacturers Association) Dwivedi and Mr. Prathamesh Pareek,
For Informant No. 3/IP-3 (Uttar Pradesh Advocates
Corrugated Box Manufacturers Association):
For OP–1 (Gujarat Paper Mills Association)
For OP–5 (Hari Sharnam Trade Links Pvt. Ltd.)
For OP–12 (Hardoli Paper Mills Ltd.)
For OP–13 (Devang Paper Mills Pvt. Ltd.)
Mr. G. R. Bhatia, Advocate
For OP–20 (Padmavati Pulp and Paper Mills)
For OP–21 (Sunshine Kraft)
For OP–23 (Swastik Pulp and Papers Pvt. Ltd.)
For OP–32 (Super Deluxe Paper Mills Pvt. Ltd.)
For OP–2 (Ramji Board and Paper Mill Pvt. Ltd.)
For OP–8 (Gayatri Paper Mill)
For OP–10 (Nice Papers Ltd.)
For OP–11 (Awade Industries Pvt. Ltd.)
Mr. Rudresh Singh, Advocate
For OP–14 (Sukraft Papers Pvt. Ltd.)
For OP–16 (Bedse Pulp Conversion Industries Pvt.
Ltd.)
For OP–28 (R. A. Shaikh Paper Mills Pvt. Ltd.)
Case No. 24 of 2017 5

For OP–4 (Umesh Board and Paper Mills Pvt. Ltd.)
For OP–6 (Vaibhav Paper Boards Pvt. Ltd.)
For OP–15 (Ravi Kiran Paper Mills Pvt. Ltd.)
Mr. Arjun Nihal Singh, Advocate
For OP–25 (Saiyed Paper Mills Ltd.)
For OP–26 (Shree Gajanan Paper and Boards Pvt.
Ltd.)
For OP–3 (Kaygaon Paper Mills Ltd.)
For OP–9 (Anantkrupa Paper Products)
For OP–17 (Khandesh Paper Mills Pvt. Ltd.)
Mr. Divye Sharma, Advocate
For OP–19 (Sunshine Pap–Tech Pvt. Ltd.)
For OP–22 (Banganga Paper Mills)
For OP–24 (Best Paper Mills Pvt. Ltd.)
For OP–30 (Sukraft Paper Mills Pvt. Ltd.)
Ms. Nidhi Singh, Advocate
For OP–31 (New Bombay Paper Mills Pvt. Ltd.)
Mr. Pranjal Prateek, Mr. Aman Singh
Baroka and Ms. Alisha Mehra,
For OP–7 (Urvashi Pulp and Paper Mills Pvt. Ltd.)
Advocates, along with Mr. Sundeep M.
Shah, Managing Director of OP–7
Mr. Manas Kumar Chaudhuri, Mr.
Ebaad Nawaz Khan, Mr. Mayuka Sah
For OP–18 (Godavari Pulp and Paper Mills Pvt.
and Mr. Armaan Gupta, Advocates,
Ltd.)
along with Mr. Pankaj Mansingka,
Managing Director of OP–18
Mr. Sagardeep Rathi and Ms. Swati
Bala, Advocates, along with Mr. Gautam
For OP–27 (Shree Ajit Pulp and Paper Ltd.)
D. Shah, Chairman and Managing
Director of OP–27
Mr. Samar Bansal, Mr. Vaibhav
Choukse, Ms. Harsheen Madan, Ms.
For OP–29 (Shweta Paper Industries Pvt. Ltd.)
Nripi Jolly and Mr. Faiz Siddiqui,
Advocates
For OP–33 (S. K. Paper) Mr. Sarvar Khan, Partner of OP–33
For OP–34 (Sezon Paper) Mr. Subodh Prasad Deo, Ms. Rinki
For OP–35 (Radheshyam Paper Mills Pvt. Ltd.) Singh and Mr. Swarnim Shrivastava,
For OP–36 (Neelkanth Pulp and Paper Boards) Advocates
Case No. 24 of 2017 6

For OP–38 (Astron Paper and Board Mill Ltd.)
For OP–39 (Mac Paper Mill)
For OP–40 (Somnath Kraft Mill Pvt. Ltd.)
For OP–41 (Resonance Paper Mill Pvt. Ltd.)
For OP–42 (Riddhi Siddhi Recyclers Pvt. Ltd.)
For OP–44 (Surani Paper Pvt. Ltd.)
For OP–45 (Latin Paper Industries LLP)
For OP–46 (Axle Paper Ltd.)
For OP–49 (Bellona Paper Mill Pvt. Ltd.)
For OP–52 (Aricon Papers Pvt. Ltd.)
For OP–53 (Karan Paper Mill)
For OP–58 (Sayaji Paper Pvt. Ltd.)
Ms. Avinash Amarnath and Mr. Aditya
For OP–37 [Shah Paper Mills Ltd. (Unit I & II)] Gupta, Advocates, along with Mr.
Ashok Z. Shah, Director of OP–37
Mr. Rajshekhar Rao, Senior Advocate,
For OP–43 (Aryan Paper Mills Pvt. Ltd.)
with Mr. Aditya Gupta, Advocate
For OP–47 (Samruddhi Paper and Pulp Conversion Mr. Tushar Pratap Sonawane, Director
Pvt. Ltd.) of OP–47
Mr. Raunaq Kamath and Mr. Sauhard
For OP–48 (Laxmi Board and Paper Mill Pvt. Ltd.) Alung, Advocate along with Mr. Rajesh
Modi, Director of OP–48
Mr. Rajshekhar Rao, Senior Advocate,
with Mr. Siddharth H. Raval, Mr. Rahul
For OP–50 (Supreme Kraft Pvt. Ltd.) Kumar and Ms. Abhilasha Nautiyal,
Advocates, along with Mr. Tejas Dharia,
Director of OP–50
Mr. Deepak Sharma, Chief Accountant
For OP–51 (Akshat Papers Ltd.)
of OP–51
Ms. Abhilasha Nautiyal and Mr. Anandh
For OP–54 (Revival Paper Mills Pvt. Ltd.) Venkatramani, Advocates along with
Mr. Kunal Dharia, Director of OP–54
For OP–55 (Apna Paper Mills Pvt. Ltd.) None
For OP–56 (Sachin Paper Mills Pvt. Ltd.) None
For OP–57 [Maheshwari Logistics Ltd. (Paper Mr. Krishna Pratap Singh, Advocate
Case No. 24 of 2017 7

Division) (Daman Ganga Paper Ltd.)]
For OP–61 [Gayatri Shakti Paper and Boards Ltd.
(Unit – II)]
For OP–59 (Sankalp Paper Industries Pvt. Ltd.) Mr. Sanat Tulsian, Director of OP–59
Mr. Noormohamad Vallimohamad
For OP–60 (Lucky Star Paper Mills)
Sheikh, Partner of OP–60
Ms. Lakshmi Krutika Vijay, Advocate
For OP–62 (Kwality Pulp and Paper Mills) along with Mr. Vijay Bapu Madnaik,
Partner of OP–62
For OP–63 (Northern India Paper Mills
None
Association)
For OP–64 (Bindlas Duplex Ltd.) Mr. K. K. Sharma, Mr. Akshit Saxena
and Mr. Aman Mishra, Advocates, along
with Mr. Pankaj Agarwal, Managing
Director of OP–64, Mr. Devkant
For OP–70 (Tehri Pulp and Paper Ltd.) Agarwal, Chartered Accountant for OP–
64, Mr. Sachin Agarwal, Director of OP–
70 and Mr. Sunil Kumar, Authorised
Representative of OP–70
For OP–65 (Paswara Papers Ltd.)
For OP–66 (Silverton Pulp and Papers Pvt. Ltd.)
For OP–67 (Maruti Papers Ltd.)
For OP–68 (RAC Paper Ltd.)
For OP–69 (Siddheshwari Industries Pvt. Ltd.)
For OP–71 (Garg Duplex and Paper Mills Pvt.
Ltd.) Mr. M. M. Sharma, Advocate and Mr.
Sudhanshu Prakash Singh, Advocate for
For OP–73 (Nikita Papers Ltd.) OP–68
For OP–74 (Devpriya Industries Pvt. Ltd.)
For OP–75 (Haripur Paper Company)
For OP–76 (Silvertoan Papers Ltd.)
For OP–77 (Sidharth Papers Pvt. Ltd.)
For OP–78 (Mahalaxmi Kraft and Tissues Pvt.
Ltd.)
Mr. Avinash Amarnath and Ms. Natasha
For OP–72 (Genus Paper and Boards Ltd.) Sood, Advocates along with Mr. Naresh
Kumar Saini, Vice–President (Corporate
Case No. 24 of 2017 8

Affairs and Legal) of OP–72
Mr. Prateek Gupta, Mr. Anil Kumar
For OP–79 (Ashoka Kraft Paper Mills LLP)
Gupta and Mr. Joney, Advocates
For OP–80 (Hyderabad Kraft Paper Mills
None
Association)
Mr. Paul Sharma, Managing Director of
For OP–81 (Sharma Papers Pvt. Ltd.)
OP–81
For OP–82 (Tirumala Venkateshwara Paper Board
Pvt. Ltd.)
For OP–83 (Sai Tirumala Papers Pvt. Ltd.)
For OP–84 (Sri M. K. Paper Mills Pvt. Ltd.) Mr. Sridhar Reddy, Advocate along with
Mr. Vivek Gandhi, Director of OP–82,
For OP–85 (Decor Paper Mills Ltd.) Mr. T. Anjani Kumar, Director of OP–
For OP–86 (Bahubali Boards Pvt. Ltd.) 83, Mr. Ritesh Agarwal, Director of OP–
For OP–87 (Classic Papers) 85, Mr. Vivek Agarwal, Director of OP–
86, Mr. Tottempudi Madhusan Rao,
For OP–89 (Venkata Padmavathi Paper Mills Pvt.
Managing Partner of OP–87, Mr. Shamji
Ltd.)
Patel, Managing Director of OP-90, Mr.
For OP–90 (Kanishka Paper and Pulp Pvt. Ltd.) Vytla Murali Krishna, Managing
For OP–92 (Rajahmundry Paper Mills Pvt. Ltd.) Director of OP–92, Mr. Rajasekhar
For OP–93 (Sri Luxmi Tulasi Agro Paper Pvt. Tetali, Director of OP–93, Mr.
Ltd.) Mohammed Hameeduddin, Managing
Director of OP–95, Mr. Mohammed
For OP–94 (Peproll Paper Mills Pvt. Ltd.) Nooruddin, Director of OP–98, Mr.
For OP–95 (Limra Paper Mills Pvt. Ltd.) Hemant Patel, Executive Director of
For OP–96 (V. L. Papers Pvt. Ltd.) OP–99, Mr. J. Subhaskara Reddy,
Managing Director of OP–100, Mr.
For OP–98 (Hyderabad Paper Mills Pvt. Ltd.)
Akshat Agarwal, Director of OP–101,
For OP–99 (Wings Papers and Board Mills Pvt. Mr. Sajja Krishna Prasad, Director of
Ltd.) OP–102, Mr. Deepak Santhwal, Partner
For OP–100 (Suvarna Durga Paper Mills Pvt. Ltd.) of OP–103, Mr. Mohammed
For OP–101 (Vijay Anand Kraft Papers Pvt. Ltd.) Mubeenuddin, Director of OP–104 and
Mr. N. V. L. N. Swamy, Director of OP–
For OP–102 (SBS Paper Boards Pvt. Ltd.)
105
For OP–103 (Sri Sai Strength Papers)
For OP–104 (Reliable Paper and Boards Mills Pvt.
Ltd.)
For OP–105 (Venkata Naga Lakshmi Paper Mills
Pvt. Ltd.)
Case No. 24 of 2017 9

For OP–106 (Sindhura Paper Products Pvt. Ltd.)
For OP–88 (Karanja Industries Pvt. Ltd.) Ms. Aishwayra J., Advocate
For OP–91 (Sri Chimmanlal Paper Mills) Mr. Sarang Shah, Chartered Accountant
For OP–97 (Vamshadhara Paper Mills Ltd.)
For OP–107 (South Indian Kraft Paper Mills
Association)
For OP–108 (Vishnu Paper Products Pvt. Ltd.)
For OP–109 (Sripathi Paper and Boards Pvt. Ltd.)
For OP–110 (Shri Pariyur Amman Kraft Papers
Mr. T. Srinivasa Murthy, Mr. Anandh K.
Pvt. Ltd.)
and Mr. Rahul Balaji, Advocates, along
For OP–112 (Suryaans Paper) with Mr. K. Swaminathan, Authorised
For OP–113 (Sastha Paper Mills Pvt. Ltd.) Representative for OP–107, Mr. G.
For OP–114 (Kovai Maruthi Papers and Boards Chellamuthu, Authorised Representative
Pvt. Ltd.) for OP–116 and Mr. Rajagopalan,
Authorised Representative for OP–114
For OP–115 (Jagdhatri Papers Pvt. Ltd.)
For OP–116 (Sri Andal Paper Mills Pvt. Ltd.)
For OP–117 (Akshera Papers)
For OP–118 (Aruldevi Paper Mills Pvt. Ltd.)
For OP–119 (Vaithieswara Papers and Boards Pvt.
Ltd.)
Mr. C. K. Nandakumar, Senior
Advocate, Mr. Raghuram Kadambi,
For OP–111 (The South India Paper Mills Ltd.)
Advocate, along with Mr. Manish M.
Patel, Managing Director of OP–111
ORDER UNDER SECTION 27 OF THE COMPETITION ACT, 2002
Facts:
1. Information in the present matter was filed under Section 19(1)(a) of the Competition
Act, 2002 (‘Act’) by the Federation of Corrugated Box Manufacturers of India
(‘Informant No.1’/‘IP–1’), Andhra Pradesh Corrugated Box Manufacturers Association
(‘Informant No. 2’/‘IP–2’) and Uttar Pradesh Corrugated Box Manufacturers
Association (‘Informant No. 3’/‘IP–3’) [Collectively hereinafter, ‘Informants’] against
Case No. 24 of 2017 10

the following Opposite Parties, alleging contravention of the provisions of Section 3 of
the Act:
i. Gujarat Paper Mills Association and its aforesaid 61 members (Opposite Party
Nos. 1 to 62),
ii. Northern India Paper Mills Association and its aforesaid 16 members (Opposite
Party Nos. 63 to 79),
iii. Hyderabad Kraft Paper Mills Association and its aforesaid 26 members (Opposite
Party Nos. 80 to 100),
iv. South Indian Kraft Paper Mills Association and its aforesaid 12 members
(Opposite Party Nos. 107 to 119),
v. Indian Argo and Recycled Paper Mills Association (Opposite Party No. 120), and
vi. Maharashtra Paper Mills Association and all its members (dropped as Opposite
Party by the Commission, based on DG’s finding that no such association exist)
2. The Informants were stated to be the associations of corrugated box manufacturers. IP–
1 is India’s apex body of corrugated box packaging industry, with a membership of
over 2,000 corrugated box manufacturers. IP–2 is the body of Andhra Pradesh’s
corrugated packaging industry, with a membership of over 100 corrugated box
manufacturers and IP–3 is the body of Uttar Pradesh’s corrugated packaging industry.
IP–2 and IP–3 are stated to be affiliated to IP–1.
3. South Indian Kraft Paper Mills Association, Maharashtra Paper Mills Association,
Gujarat Paper Mills Association, Hyderabad Kraft Paper Mills Association and
Northern India Paper Mills Association were stated to be regional associations of Kraft
paper manufacturers, while Indian Agro and Recycled Paper Mills Association was
stated to be the apex body which represents the non–wood paper segment in India.
4. The Informants submitted that their members, i.e., corrugated box manufacturers, were
engaged in the manufacture of corrugated boxes. The primary input for manufacture of
corrugated boxes is Kraft paper, which constitutes nearly 70–80% of the input cost and
there is no alternative to Kraft paper for manufacture of the corrugated boxes. Thus, it
was stated that any escalation in the cost of Kraft paper has a direct effect on the
corrugated box manufacturers.
Case No. 24 of 2017 11

5. As per the Informants, Kraft paper is manufactured by Kraft paper mills located at
various regions in India. It was alleged that the various associations of Kraft paper
mills, by way of periodic meetings and correspondences, direct their members (i.e.,
paper mills) to: (i) increase the price of the paper to be sold to the buyers, i.e.,
corrugated box manufacturers; and (ii) create a condition of shortage to enforce the
unjust price increase and shut the operation of the paper mills in a region collectively.
The Informants alleged that such raising and fixing prices of Kraft paper by the Kraft
paper mills is a violation of Section 3(3)(a) of the Act. Further, the closing of factories
in a co–ordinated manner results in limiting the supply of Kraft paper to the corrugated
box manufacturers, which is a violation of Section 3(3)(b) of the Act.
6. In view of the above, the Informants prayed the Commission to direct the Director
General (‘DG’) to investigate the matter; declare that the Opposite Parties and their
members have indulged in anti–competitive behaviour in violation of Section 3 of the
Act; direct the Opposite Parties and their members to cease and desist from indulging in
anti–competitive activities under the provisions of Section 3 of the Act; impose
maximum penalty on the Opposite Parties under Section 27 of the Act; and pass any
other order(s) as may be deemed appropriate under the Act.
7. The Commission, after perusing the material available on record, passed an order dated
17.08.2017 under Section 26(1) of the Act forming an opinion that, prima facie, the
conduct of the Opposite Parties and their member paper mills as outlined by the
Informants appears to be in contravention of the provisions of Section 3(3) of the Act
read with Section 3(1) thereof. Thus, the Commission directed the DG to cause an
investigation into the matter and submit an investigation report. It was made clear that
if, during the course of investigation, the DG comes across any other conduct of the
Opposite Parties in addition to those mentioned in the Information to be in
contravention of the provisions of the Act, the DG shall also investigate the same.
Further, if the DG comes across the involvement of any party(s) other than the Opposite
Parties named in the Commission’s order in respect of such contravention, the DG shall
investigate the conduct of such other party(s) also. Further, the DG was directed to
conduct a detailed investigation without restricting and confining itself to the duration
mentioned in the Information.
Case No. 24 of 2017 12

8. During the pendency of investigation before the DG, the following paper mills
approached the Commission by way of filing applications under Section 46 of the Act
read with Regulation 5 of the Competition Commission of India (Lesser Penalty)
Regulations, 2009 (‘LPR’):
S. No. Name of Paper Mill Date and Time of Filing

1. Ramji Board and Paper Mills Private Limited 10.05.2018 at 04:13 p.m.
2. Umesh Board and Paper Mills Private Limited 11.05.2018 at 05:03 p.m.
3. Kaygaon Paper Mills Private Limited 11.05.2018 at 06:24 p.m.
4. Godavari Pulp and Paper Mills Private Limited 11.05.2018 at 07:18 p.m.
5. Hari Sharnam Trade Links Private Limited 15.05.2018 at 05:59 p.m.
6. Vaibhav Paper Boards Private Limited 15.05.2018 at 07:16 p.m.
7. Anantkrupa Paper Products 22.05.2018 at 04:31 p.m.
8. Nice Papers Limited 22.05.2018 at 05:08 p.m.
9. Hardoli Paper Mills Limited 22.05.2018 at 06:16 p.m.
10. Padmavati Pulp and Paper Mills 22.05.2018 at 07:23 p.m.
11. Banganga Paper Mills 23.05.2018 at 02:51 p.m.
12. Shree Gajanan Paper and Boards Private Limited 23.05.2018 at 03:27 p.m.
13. Swastik Pulp and Papers Private Limited 24.05.2018 at 09:14 p.m.
14. Ravi Kiran Paper Mills Private Limited 24.05.2018 at 09:38 p.m.
15. Shree Ajit Pulp and Paper Limited 01.06.2018 at 06:06 p.m.
16. Best Paper Mills Private Limited 01.06.2018 at 06:44 p.m.
17. Saiyed Paper Mills Limited 01.06.2018 at 07:51 p.m.
18. Urvashi Pulp and Paper Mills Private Limited 07.06.2018 at 08:41 p.m.
19. Gayatri Paper Mills 07.06.2018 at 09:24 p.m.
20. Awade Industries Private Limited 07.06.2018 at 09:58 p.m.
21. Sunshine Kraft 18.06.2018 at 07:19 p.m.
22. Sukraft Papers Private Limited 18.06.2018 at 07:55 p.m.
23. Bedse Pulp Conversion Industries Private Limited 18.06.2018 at 08:24 p.m.
24. Sunshine Pap–Tech Private Limited 20.06.2018 at 10:49 a.m.
25. Khandesh Paper Mills Private Limited 27.06.2018 at 07:44 p.m.
26. R. A. Shaikh Paper Mills Private Limited 27.06.2018 at 08:14 p.m.
Case No. 24 of 2017 13

S. No. Name of Paper Mill Date and Time of Filing
27. Devang Paper Mills Private Limited 28.06.2018 at 06:26 p.m.
28. Super Deluxe Paper Mills Private Limited 28.06.2018 at 07:33 p.m.
29. Sukraft Paper Mills Private Limited 31.07.2018 at 03:39 p.m.
30. New Bombay Paper Mills Private Limited 31.07.2018 at 03:51 p.m.
31. Shweta Paper Industries Private Limited 17.08.2018 at 07:07 p.m.
Investigation by the DG:
9. The DG, after carrying out a comprehensive investigation, submitted its investigation
report – confidential and non–confidential version – before the Commission.
10. During investigation, the DG issued notices to the Opposite Parties, their member paper
mills, the Informants and various third–parties asking them to submit certain
information in relation to the matter. Further, the DG obtained copies of circulars issued
by the associations, Minutes of Meetings (‘MoMs’)/Gist of Meetings, copies of RG–1
Registers of various paper mills which were required to be maintained by the
manufacturers of goods leviable excise duty before the implementation of Goods and
Services Tax (‘GST’), copies of electricity bills and invoices of various paper mills, etc.
The DG also recorded the statements of certain individuals of the paper mills on oath,
during which their mobile phones were also inspected, which revealed the existence of
various WhatsApp groups, exchange of WhatsApp communications and e–mail
communications between the paper mills.
11. With respect to Gujarat Paper Mills Association (‘GPMA’/‘OP–1’), the DG observed
that it is a society registered under the Societies Registration Act, 1860, and in February
2017, the members of GPMA formed another association under the name and title of
the Federation of Indian Paper Recyclers (‘FIPR’), which was registered under the
provisions of the Companies Act, 2013 and was a mirror image of GPMA, with a
common President and Secretary. The office–bearers of GPMA from 2011 to 2015
were Mr. Vijay Madnaik of OP–62 as President, Mr. Sunil Agarwal of OP–26 as
Secretary and Mr. Gautham Shah of OP–27 as Treasurer; and from 2015 onwards were
Mr. Sunil Agarwal of OP–26 as President, Mr. Nimish Shah of OP–6 as Vice–
President, Mr. Lalit Garg of OP–2 as Honorary Secretary and Mr. Hiten Shah of OP–32
as Treasurer.
Case No. 24 of 2017 14

12. The DG found that GPMA/FIPR issued various circulars to its members from April
2009 to December 2017 for increasing the prices of different grades of Kraft paper. The
DG observed that a plain reading of such circulars establishes that GPMA/FIPR was
involved in issuing directions to its members to increase the prices of different grades
of Kraft paper from time to time. Further, the circulars also showed that GPMA/FIPR
used to conduct meetings with its members wherein decisions regarding increase in
prices were taken. MoMs held from February 2017 to April 2018 also showed that
GPMA/FIPR was involved in fixing the prices of Kraft paper and collective shut–down
of paper mills. MoMs showed that such meetings were held at various places in the
states of Gujarat, Maharashtra, Daman, etc., and that such meetings used to be attended
by paper mills from Gujarat, Maharashtra, Chhattisgarh and Madhya Pradesh and, on
certain occasions, by representatives of other regional Kraft paper associations such as
Hyderabad Kraft Paper Mills Association and South India Kraft Paper Mills
Association also. MoMs also indicated that GPMA/FIPR had formed a Monitoring
Committee which used to monitor whether or not the paper mills were abiding by the
shut–down decisions.
13. The DG also found existence of three WhatsApp Groups of paper mills owners: (i) one
of paper mills from Gujarat, Maharashtra and Chhattisgarh namely “Paper Mills –
GJ/MS/CGK”, (ii) one of Maharashtra Paper Mills, and (iii) one by the name of “NEWS
(North East West South) Paper Mills” where almost all paper mills across India
including of North, South, Hyderabad, Madhya Pradesh etc. were members. In these
groups, members used to fix price of Kraft paper, discuss prices of raw material waste
paper and collective shut–down of mills.
14. The DG also recorded the statements of representatives of various paper mills who
were part of GPMA, many of whom admitted to the existence of an understanding
between the paper mills with respect to, inter alia, increase in prices of Kraft Paper,
collective shut–down of mills and monitoring of same by GPMA. The DG also found
several e–mail communications issued by GPMA to its members in this regard.
15. The DG observed that the case of GPMA/FIPR is different from other cases of trade
associations wherein the associations generally issue directions/diktats to members to
follow. In case of GPMA/FIPR, the paper mills themselves conducted meetings under
Case No. 24 of 2017 15

the banner of GPMA/FIPR and took decisions regarding increase in prices of Kraft
paper and shutting down of mills and thereafter issued circulars to the members.
16. Hence, based on the above evidences, the DG concluded that GPMA/FIPR and its 61
members were involved in collective increase of prices of Kraft paper and collective
shut–down of paper mills, which conduct is in violation of the provisions of Section
3(3)(a) and 3(3)(b) of the Act.
17. The DG also concluded from such evidences that the paper mills were also, under the
banner of GPMA, involved in collective fixing of prices of waste paper, which forms
the basic raw material for the manufacture of Kraft paper.
18. With respect to Northern India Paper Mills Association (‘NIPMA’/‘OP–63’), the DG
observed that it is an unregistered association of paper mill owners from North India,
with Mr. Pankaj Aggarwal, Managing Director of OP–64 as its President.
19. The DG found that though Mr. Pankaj Aggarwal denied the existence of any
association NIPMA, the evidences recovered from his e–mail as well as the WhatsApp
messages exchanged by him, specifically on group “NEWS Paper Mills” proves that he
was the President of NIPMA. Further, it was found by the DG that in January 2017,
NIPMA had declared a shut–down of mills from 21.01.2016 to 25.01.2016 and several
paper mills in North India had, in fact, shut–down during these days. On several other
identical dates also, paper mills in North India were found to have shut–down, fully or
partially, and these dates were in conformity with the shut–downs declared by NIPMA
and intimated in the WhatsApp group “NEWS Paper Mills”.
20. The DG further found that paper mills in North India also used to inform their dealers
about price increase through WhatsApp, and such price increases were often identical,
i.e., exactly on pre–decided dates as decided in NIPMA meetings. NIPMA used to
conduct meetings of different Kraft paper mills from time to time. In these meetings,
attendees used to discuss controlling the price of waste paper, increasing the price of
finished paper and collectively shutting down paper mills. After the meetings, NIPMA
used to communicate through WhatsApp messages in “NEWS Paper Mills” about the
decisions taken.
Case No. 24 of 2017 16

21. Hence, based on the above evidences, the DG concluded that NIPMA and at least its 16
banner of NIPMA, involved in collective fixing of prices of waste paper, which forms
the basic raw material for manufacture of Kraft paper.
23. Regarding Hyderabad Kraft Paper Mills Association (‘HKPMA’/’OP–80’), the DG

observed that it is not a registered association and has no by–laws. It is based at
Hyderabad and comprises of Kraft paper manufacturers of Telangana. It has no regular
office–bearers; however, its default office–bearers are Mr. Prem Paul Sharma of OP–81
as President, Mr. Deepak Chand Agarwal of OP–101 as Vice President and Mr. T.
Anjani Kumar of OP–83 as Secretary.
24. From the e–mail dumps of certain paper mills related to HKPMA, it was found by the
DG that, like GPMA, HKPMA also used to conduct meetings wherein increase in
prices of Kraft paper, controlling prices of waste paper and collective shut–down of
mills was decided. Also, the DG found that there used to exist a WhatsApp group,
namely, “Hyd Kraftmills Assn HKPMA” wherein members used to discuss controlling
the price of waste paper, deciding the prices of finished Kraft paper and collective shut–
down of mills.
25. The DG also recorded the statements of representatives of various paper mills who
were part of HKPMA and most of them admitted to the existence of HKPMA and
decisions taken in its meetings as well as at least partial implementation thereof. The
DG also found several e–mail communications issued by HKPMA to its members in
this regard.
26. Hence, based on the above evidences, the DG concluded that HKPMA and its 26
Case No. 24 of 2017 17

banner of HKPMA, involved in collective fixing of prices of waste paper, which forms
28. Lastly, regarding South Indian Kraft Paper Mills Association (‘SIKPMA’/OP–107’),
the DG observed that it is registered as a private company under the erstwhile
Companies Act, 1956, limited by guarantee and not having share capital. Its registered
office is in Chennai. Its office–bearers are Mr. K. R. Krishnaswamy of OP–109 as
President, Mr. Nandikeshwar of OP–108 as Vice–President, Mr. Perikaruppan of OP–
113 as Treasurer and Mr. K. Swaminathan as Secretary.
29. The DG found various documentary evidences in the form of e–mails, MoMs and Gist
of Meetings available on record, along with confessional statements of representatives
of paper mills of SIKPMA, which evidenced that SIKPMA and its members were
involved in conducting meetings of different Kraft paper mills from time to time. In
these meetings, the attendees used to discuss controlling the price of waste paper/the
price at which waste paper should be purchased. They were also discussing and
increasing the price of finished Kraft paper and collectively shutting down the paper
mills. After the meetings, SIKPMA used to communicate the decisions taken for
increasing the price of finished paper and collective shut–down of mills to its members.
Such increase in prices as well as shut–down was also co–ordinated by forming a
WhatsApp group, namely, “South India Kraft Paper Mills”. The office–bearers of
SIKPMA were also members of all India level WhatsApp group “NEWS Paper Mills”.
30. It was also observed by the DG that mills which attended the meetings of SIKPMA
shut–down their plants on the dates decided by SIKPMA and increased prices of
finished paper from time to time, fully or partially in accord with SIKPMA decisions.
SIKPMA also proposed penalty on errant paper mills found not adhering to its
decisions of price increase.
31. Members of SIKPMA were also found to be in regular touch with HKPMA and GPMA
for co–ordinating price increase, prices of waste paper as well as collective shut–down
of paper mills. Office–bearers of SIKPMA were also found to be attending certain
meetings of HKPMA and GPMA wherein price increase and/or collective shut–down
decisions took place.
Case No. 24 of 2017 18

32. Hence, based on the above evidences, the DG concluded that SIKPMA and its 12
banner of SIKPMA, involved in collective fixing of prices of waste paper, which forms
34. Regarding Indian Agro and Recycled Paper Mills Association (‘IARPMA’/’OP–120’),
the DG observed that it is an association registered under the Societies Registration
Act, 1860 in 2002, having its registered office at Delhi. It is providing liaison works for
its members related to various issues such as energy shortage, customs duty, excise
duty, VAT, GST, technological development, pollution etc. besides being involved in
organising exhibition and conferences and releasing publications on Indian pulp, paper
and allied industry to highlight the developments taking place in the pulp and paper
industry worldwide to the doorstep of Indian Paper Industry.
35. The DG observed that OP–120 had not held any meetings related to price etc. as it had
submitted that pricing of paper and marketing of products are internal matters of each
paper mill. OP–120 had also claimed that it was not involved in issuing any directions
to any paper mill to stop production etc. As such, the DG gave no finding of
contravention of any of the provisions of the Act against OP–120.
Proceedings before the Commission:
36. The Commission considered the DG Report in its ordinary meeting held on 25.02.2021
and arrayed the additional 115 parties identified by the DG apart from the 06 named
Opposite Parties, as Opposite Parties in the matter. The Commission also deleted the
name of Maharashtra Paper Mills Association from the array of parties as the DG had
found that no such association existed; thus, bringing the number of Opposite Parties to
120.
37. The Commission directed to forward an electronic copy of the non–confidential version
of the DG Report to the 03 Informants and 119 OPs (except OP–120 against whom no
contravention of the provisions of the Act had been found by the DG) for filing their
Case No. 24 of 2017 19

respective suggestions/objections, if any, to the DG Report along with a brief synopsis
thereof. The Commission further directed the 119 OPs to furnish their audited balance
sheets and profit & loss (‘P&L’) accounts/turnover and the details of the revenue and
profit generated by them from the sale of Kraft papers by way of Affidavits supported
by certificates of chartered accountants, for the following Financial Years (‘FY’):
Gujarat Paper Mills

Opposite Party Nos. 1–62 2009–10 to 2018–19
Association and its members
Northern India Paper Mills
Hyderabad Kraft Paper Mills
South Indian Kraft Paper Mills
38. Thereafter, from time to time, extension of time to file suggestions/objections to the DG
Report and/or financial statements, were given to the parties by the Commission, on
their request.
39. Finally, vide order dated 14.12.2021, the Commission fixed the schedule for the final
hearing through video conferencing in the matter as follows:
Opposite Party Nos. 01–62 07.03.2022 at 10:30 a.m.

Opposite Party Nos. 107–119 and Informants 10.03.2022 at 10:30 a.m.
40. Accordingly, from 07.03.2022 to 10.03.2022, the Commission heard the oral
submissions addressed by the respective Authorised Representatives of the parties
(learned senior counsel(s)/learned counsel(s)/Chartered Accountants/parties in–person)
on the DG Report and on the respective applications for lesser penalty filed by 31 OPs
under Section 46 of the Act. The Commission decided to pass an appropriate order in
the matter in due course. Thereafter, the parties also submitted their respective written
arguments as well.
Case No. 24 of 2017 20

Analysis:
41. The Commission has perused the applications seeking lesser penalty filed under Section
46 of the Act by 31 OPs, the investigation report submitted by the DG and the
evidences collected by the DG, the suggestions/objections to the DG Report and written
arguments filed by the parties, and also heard the oral arguments made by the
respective authorised representatives representing the parties in the matter.
Based on the evidences collected by the DG and the arguments made by the respective
Opposite Parties, the Commission proceeds to make Opposite Party–wise analysis in
the subsequent paragraphs.
42. OP–1 (Gujarat Paper Mills Association - GPMA)
42.1 As per its own submission before the DG, OP-1 had membership of 119 paper mills
situated in the States of Gujarat, Maharashtra, Madhya Pradesh and Chhattisgarh,
which included, inter alia, OP-1 to OP-13, OP-15 to OP-45 and OP-47 to OP-62.
42.2 From the DG Report, it is noted that OP-1 held several meetings with its members
which were also attended by paper mills of other states and representatives of other
regional associations. Details of some of the same, as collected by the DG from MoMs,
are as under:
S. No. Meeting dated Attendees Decision as recorded in MoM

• Penalty on members not shutting down mills as
per decisions of GPMA.
• Discussed increase in prices of various grades of
Attended by 71
15.02.2017 at Kraft paper and decision taken to increase price
paper mills of
1 JW Marriot, by ₹1 per kg across board with effect from
Gujarat and
Mumbai 01.03.2017.
Maharashtra
• Decided to shut-down mills between 11.03.2017
to 15.03.2017.
• Next meeting shall be held 15.03.2017.
Attended by 67 • Rates cannot increase at one go because in such a
paper mills of case, undercutting is bound to happen.
15.03.2017 at Gujarat, • Credit period for supply of paper decided.
2 Westin Hotel, Maharashtra and • Discussed about trying to reduce the rate of waste
Mumbai Chhattisgarh as well paper.
as paper mills of • Decision to take disciplinary action against
Hyderabad, Chennai certain paper mills which are not following shut-
Case No. 24 of 2017 21

and SIKPMA down but taking benefit of price increase.
Benefits of observing collective shut-down
discussed, one of them being easily getting
increase in rates of finished paper.
• Decision to increase the price of Kraft paper by
₹2 per kg across the board.
• Discussed pricing of Kraft paper.
28.03.2017 at Attended by 29 • Discussed shut-down of mills and action against
3 Hotel TGB, paper mills of non-compliance of shut-down direction
Surat Gujarat • Discussed about case being filed by corrugated
box manufacturers against paper mills
• Discussion on disciplinary action against
members if found not complying with decisions
of association/federation like collective decision
of keeping the mills shut.
Attended by 69 • In order to reinforce/settle the increased rate of
paper mills of ₹7, it is necessary that paper mills strictly observe
Gujarat, 100% shut. Still more effective would be
07.04.2017 at
Maharashtra, increasing the shut period from 5 to 7 days a
4 Westin Hotel,
Chhattisgarh as well month. Shut has to be continued till December
Mumbai
as paper mills of 2017 every month for 7 days. Shut for April
Telangana and would be from 05.04.2017 to 11.04.2017.
SIKPMA • Shut for May 2017 would be from 02.05.2017 to
08.05.2017 for 7 days.
• Decided not to declare increase in price of
finished paper this time.
• Next meeting shall be probably held 06.05.2017.
• Undercutting of rate should not happen and when
a rate is declared and accepted by all, it should be
followed strictly.
• No order @ ₹7, hence, may have to keep the
24.04.2017 at
Attended by 32 mills closed.
Hotel Comfort
5 paper mills of • Rates should be fixed region wise. No old rates
Inn Donil,
Gujarat should be accepted.
Baroda
• Instead of 7 days shut a month, there should be 5
days shut every 15 days.
• Paper mills of Vapi will dispatch orders only @
₹7.
6 05.05.2017 at Attended by 52 • A meeting was held in Nagpur on 29.04.2017
Case No. 24 of 2017 22

Westin Hotel, paper mills of amongst paper mills of Nagpur, Raipur,
Mumbai Gujarat, Chhattisgarh, etc., wherein members unitedly
Maharashtra and assured that orders would be taken only at ₹7 and
Chhattisgarh further discussions would be held in Mumbai on
05.05.2017.
• Discussed report of Monitoring Committee to
monitor shutting down of paper mills.
• Points of view were expressed regarding certain
mills not taking the benefit of increased rate,
monitoring to be done for 5 days at an interval of
15 days in a month, monitoring to be done for 7
days at an interval of 20 days, declared rate of ₹7
to not be undercut, etc.
• Asked the Maharashtra paper mills to take orders
at ₹7 only.
• Next meeting shall be held on 02.06.2017.
• Monitoring period for the month of June 2017
would be 01.06.2017 to 06.06.2017.
• First meeting was held on 19.01.2017 and this is
the 6th meeting.
Attended by 57
• FCBM members are planning to go to CCI and
02.06.2017 at paper mills of
collecting necessary data regarding ₹7 increase in
7 Westin Hotel, Gujarat,
price of finished paper.
Mumbai Maharashtra and
• Monitoring period for the month of June 2017
Chhattisgarh
would be 27.06.2017 to 03.07.2017.
• No paper mill should act independently against
the decisions of the association.
• Uniform increase in price of finished paper across
board shall be considered.
Attended by 48 • A group of sector leaders shall collectively
25.07.2017 at
paper mills of approach the units which are not following
8 JW Marriot,
Gujarat, Maharashtra decisions of the association and if such units
Mumbai
and Chhattisgarh continue to default, a penalty of ₹5 lacs shall be
imposed. Only after payment of penalty, shall the
unit be re-admitted.
• Next meeting shall be held on 19.08.2017 and a
meeting shall also be held on 10.07.2017.
19.08.2017 at Attended by 36 • A Committee must be formed which will have
9
Hotel Ramada paper mills of the authority and wisdom to declare rates of
Case No. 24 of 2017 23

Plaza Palm Gujarat, paper on a regular monthly basis and all
Grove, Maharashtra and stakeholders shall adopt the rates declared by this
Mumbai Chhattisgarh Committee.
• Next meeting shall be held on 16.09.2017 and a
meeting was also held at Baroda on 10.08.2017.
22.11.2017 at Attended by 15
• Prices of finished paper fixed and increase letters
10 GPMA Office, paper mills of
decided to be sent.
Vapi Gujarat
Attended by 35
05.12.2017 at • Discussed “if we remain united, we gain and lose
paper mills of
11 Hotel Novotel, if divided”.
Gujarat, Maharashtra
Mumbai • Next meeting shall be held on 25.12.2017.
and Chhattisgarh
• Discussed that objective of running a paper mill
is not just to survive but also to earn profits. Only
Attended by 37
when there are collective and concerted efforts,
25.12.2017 at paper mills of
leaving aside small difficulties, can the paper
12 Hotel Mirasol, Gujarat,
mills can survive and earn profits.
Daman Maharashtra and
• Discussed that efforts should be made to stabilise
Chhattisgarh
the waste paper rate at certain level.
• Last meeting was held on 15.02.2018 in Mumbai.
In between, there was a meeting at Nashik, as a
result of which, uniformity and consensus
prevailed and rates remained stable. It was
discussed that this was the golden time for paper
mills to save and earn. Prices of raw materials are
going down but they should be careful that such
Attended by 27 advantage should not be passed down.
paper mills of • Meetings should be held at least once a month
05.04.2018 at
Gujarat, without fail.
13 Club Aquaria,
Maharashtra, • All should have a single focus of doing better and
Mumbai
Chhattisgarh and earning.
Madhya Pradesh • Basic rate should not be lowered. All paper mills
must observe patience and not be gripped by fear
or psychosis, reducing the rate in fear of
unhealthy competition.
• Suggestions were received regarding how to keep
the waste paper rate stable, take best advantage
and declare rates for three months etc.
• Discussed about present case filed with CCI.
Case No. 24 of 2017 24

42.3 In furtherance of the decisions taken in such meetings, OP-1 issued, inter alia, the
following circulars to its members, for increasing prices of different grades of Kraft
Paper:
Sl. Date of Rate increase per

Type of Paper
No. Circular metric ton (In ₹)
1 07.04.2009 All grades of MG Kraft paper 1,250
2 18.12.2009 All grades of MG Kraft paper 1,000
MG Kraft paper12 BF and 14 BF 500
MG Kraft paper 16 BF 750
3 08.02.2010
MG Kraft paper 18 BF and 20 BF 1,000
MG Kraft paper 22 BF and above 1,250
MG Kraft paper 12 BF and 14 BF 1,000
4 21.02.2010
MG Kraft paper 16 BF and above 1,250
5 23.04.2011 Upto 16 BF Kraft paper 500
7 09.09.2011 Upto 16 BF Kraft paper 1,000
13 01.03.2013 All grades of Kraft paper 1,000
Different grades of Kraft paper
16 29.08.2013 1,000/1,500
(From BF 12 to 45)
17 13.02.2014 All grades of Kraft paper 750
18 13.03.2014 All grades of Kraft paper 750
21 29.08.2014 For 18 BF Kraft paper 500
Case No. 24 of 2017 25

Sl. Date of Rate increase per
Type of Paper
No. Circular metric ton (In ₹)
29 09.09.2016 All grades of Kraft paper 1,000/500
30 25.11.2016 All grades of finish paper 1,000
42.4 OP-1 also issued, inter alia, the following e-mail communications, to its members:
(a) E-mail dated 30.01.2013 sending Price Rise Circular dated 30.01.2013;
(b) E-mail dated 20.03.2013 sending Price Rise Circular dated 20.03.2013;
(c) E-mail dated 19.06.2013 sending Price Rise Circular dated 19.06.2013;
(d) E-mail dated 29.08.2013 sending Price Rise Circular dated 29.08.2013;
(e) E-mail dated 13.02.2014 sending Price Rise Circular dated 13.02.2014;
(f) E-mail dated 16.02.2016 with the subject “Fw: GPMA – Price Rise Circular dt.
16.02.2016” attaching circular dated 16.02.2016 issued by OP-1 directing price
increase by the members;
(g) E-mail dated 19.07.2016 circulating copies of price increase circular of 19 paper mills
to others:
“Dear Member,
Sending herewith attached copy of Customer Circular Copy of for your kind
information.
…
19 attachments …”
(h) E-mail dated 09.09.2016 sending Price Rise Circular dated 09.09.2016;
Case No. 24 of 2017 26

(i) E-mail dated 21.11.2016 fixing meeting dated 25.11.2016 through circular dated
21.11.2016:
“GPMA – Circular Dt. 21.11.2016

Dear Sir,
Sending herewith attached copy of above subject for your kind information.
…”
(j) E-mail dated 26.11.2016 sending Price Rise Circular dated 25.11.2016;
(k) E-mail dated 06.01.2017:
“Present Scenario of Kraft Paper Industry

…
V. To overcome the cash losses, we have to increase the “Finished Goods
Price” by Rs. 3 to 4 per kg, on an immediate basis.
…
To overcome the gap between Demand & Supply and to build confidence in the
Members, it is a must to curtain the production for next six months which will
be continued by 4 days a month Plant Shut, till the slowdown is improved. …
For this we have to follow a Plant Shut Schedule as follows:
OPTION – I
A. First Month:- Eight Days (Every Saturday & Sunday)
B. Second Month:- Six Days (9th & 10th, 19th & 20th and 29th and 30th)
C. Third Month:- Six Days (14th & 15th and 29th & 30th)
OPTION – II
A. A joint meeting of All Member Mills in the state of “GUJARAT and
MAHARASHTRA” to be organised and a Pre-planned Plant shut of 4 to 6
days to be taken at a time, as per a unanimous decision applicable in both
the states.
B. …
C. A strict penalty should be imposed on non-compliance of the unanimous
decision i.e. Rs. 5000/mt. So a mill having capacity of 100 mt per day have
to pay Rs. 5,00,000 X No. of days, for not taking the plant shut, even after
giving the written confirmation.
D. …”
Case No. 24 of 2017 27

(l) E-mail dated 20.01.2017 sending copy of one paper mill’s price rise circular as format
for other paper mills to follow the same:
“Price rise Circular draft of Shree Gajanan Paper
URGENT
Dear Member,
Sending herewith attached Price Rise Draft copy of Shree Gajanan Paper for
your kind information. Please same draft type on your Letter Pad and hard
copy send to GPMA office or email to GPMA.
Thanking you,”
(m) E-mail dated 30.01.2017 circulating draft declaration to be given for adhering to shut-
down call:
“Urgent – Draft of Declaration
URGENT
Sending herewith attached copy of above subject for your kind information.
Please Declaration of draft type in your Letter Pad & send hard copy to
Following Address … & Scan copy email to ID: …
Thanking you,
For: Gujarat Paper Mills Association”
Case No. 24 of 2017 28

(n) E-mail dated 20.02.2017 circulating MoM dated 15.02.2017;
(o) E-mail dated 10-11.03.2017 sending agenda for meeting dated 15.03.2017;
(p) E-mail dated 18.03.2017 circulating MoM dated 15.03.2017;
42.5 In his statement recorded before the DG, Mr. Ganesh P. Thakur, Former Executive
Secretary of OP-1 (from 2017 to 2019), acknowledged as under:
“GPMA/FIPR issued price hike circular to its members/mill owners. As per my

knowledge GPMA has issued 11 price hike circulars during the period April
2011 to February 2016, showing a total increase of Rs.9, 750/- per MT.
Certain Kraft Paper mill owners from states like Gujarat, Maharashtra and
Chhattisgarh were in the group and they used to exchange messages, on
matters such as price of Kraft paper, price of waste paper, collective shutting
down of mills, …
Case No. 24 of 2017 29

… Now I recollect that paper mill owners from state of Gujarat, Maharashtra,
Chhattisgarh and M. P. were used to attend GPMA meetings. In GPMA
meeting held on 15.02.2017 attendees discussed about the price hike of Kraft
Paper, collective shut-down of mill and chair decided to increase the price of
Kraft Paper by Re.1/- with effect from 01.03.2017 and collectively shut the
mills from 11th to 15th March 2017.
… GPMA has taken the decision to shut the mills collectively from Gujarat,
Maharashtra and Chhattisgarh states during the period 02.05.2017 to
08.05.2017 (7 days) as per the MOM dated 07.04.2017. In the above meeting,
GPMA has also decided to take action against member mills if found not
complying with decisions of GPMA/FIPR and formed a monitoring team to
ensure the above compliance.
… in the above meeting (25.07.2017), FIPR decided to impose a penalty of
Rs.5 Lakhs on those Kraft Paper mills which are not collectively keeping shut
as per the directions of FIPR. However, GPMA/FIPR never recovered any
penalty from those mills, which are not complying with the directions of
GPMA/FIPR regarding collective shut.”
42.6 The DG has also found that there existed at least three WhatsApp Groups of the paper
mill owners – (i) WhatsApp Group of Maharashtra Paper Mills; (ii) WhatsApp Group
of paper mill owners of Gujarat, Maharashtra and Chhattisgarh namely “Paper Mills –
GJ/MS/CGK; and (iii) WhatsApp Group namely ‘NEWS Paper Mills’ of a large
number of paper mill owners from all over India. In such groups, members used to
discuss issues regarding price of Kraft paper, price of raw material waste paper and
collective shut-down of mills.
42.7 In its reply to the DG Report, OP-1 stated that it fully agrees with the conclusions of
contravention of the provisions of the Act by it drawn by the DG.
42.8 However, it argued that it provided its platform to its members for engaging in
collective increase in the sale price of Kraft paper, only for the members to survive in
the market as they were bearing losses and/or low profit margins, price of raw material,
i.e., waste paper was constantly on a rise and to keep operations profitable or at least
commercially viable. Further, it submitted that, though it suggested several price
increases to the members, not all were effectuated by the member paper mills to the
extent suggested, and prices could only be increased marginally in light of stiff
competition amongst the paper mills. With respect to collective shut-down of mills,
OP-1 submitted that since the supply of Kraft paper outweighed the demand in the
Case No. 24 of 2017 30

market, collective halt was decided. Since the Kraft paper mills had surplus unsold
inventory, collective shut-down of mills was decided as continually running the mills
was not commercially viable and inventory lying unsold ensured no disruption in
supply. OP-1 also submitted that corrugated box manufacturers enjoy substantial
buying power qua Kraft paper manufacturers. They have reaped huge profits due to
oversupply enabling them to purchase Kraft paper at low prices. Also, it was submitted
that the WhatsApp group “NEWS Paper Mills” found by the DG had over 700
members; however, the DG has restricted its investigation to 114 paper mills only.
42.9 In regard to the above submissions made by OP-1, firstly, the Commission notes that
the provisions of Section 3(1) of the Act not only proscribe agreements which cause an
appreciable adverse effect on competition (‘AAEC’) in the market, but also forbid
agreements which are likely to cause AAEC in the market. Secondly, the Commission
notes that once an agreement of the types specified under Section 3(3) of the Act is
established, the same is presumed to have an AAEC within India. Unless the parties are
able to rebut such presumption of AAEC by showing positive effects emanating from
the cartel activity in terms of the factors stated under Section 19(3) of the Act i.e.,
accrual of benefits to consumers, improvement in production or distribution of goods or
provision of services, or promotion of technical, scientific and economic development
by means of production or distribution of goods or provision of services, the
presumption of AAEC stands. In the present matter, except bald submission, there is no
evidence put forth by OP-1 that the collective decisions taken on its platform from time
to time to increase the price of Kraft Paper or shut-down the paper mills, was indulged
into to ensure survival of the paper mills in the market or that, in the absence of the
cartel, the paper mills would have gone out of business only because of the entry of
new paper mills in the market since 2013–14. Hence, it is axiomatic to presume in the
present matter that the impugned conduct of the parties caused AAEC within India.
Thirdly, regarding collective shut-down of mills, the Commission observes that any
paper mill having unsold inventory could have taken an independent decision to halt
production. However, it is clear from the MoMs of OP-1 analysed by the DG that the
collective shut-down of mills was directed in order to increase the price of Kraft paper
in the market. Lastly, as far as the submission regarding the DG not holding all 700
members of the WhatsApp group liable is concerned, the Commission is of the view
Case No. 24 of 2017 31

that it is not of much relevance considering that there are clear and glaring evidences
proving that the cartel amongst OP-1/FIPR and its certain members.
42.10 Therefore, based on the evidences collected by the DG as detailed above, the
Commission finds that OP-1/FIPR held discussions with its members and issued
directions to them from time to time for increasing the prices of Kraft Paper and for
collective shut-down of paper mills, apart from monitoring whether the decision of
collective shut-down was being adhered to by the members or not, which conduct
amounts to indirectly determining the sale prices of Kraft paper in contravention of the
provisions of Section 3(3)(a) of the Act and limiting and controlling the production,
supply and market of Kraft paper in contravention of the provisions of Section 3(3)(b)
of the Act, read with Section 3(1) of the Act, from 2011 to 2018.
42.11 With respect to penalty, OP-1, inter alia, submitted that it had provided all requisite
evidence and co-operation to the DG in the matter. The following mitigating factors
also ought to be considered while deciding the quantum of penalty, if any, to be
imposed upon OP-1: (i) Kraft paper mills use waste paper as raw material support and
promote environmental sustainability; (ii) they indulged into crisis cartel to control
prices only for their survival and not to further any profit-making agenda; (iii) they
stimulate the economy by creating opportunities for low-income sectors; (iv)
imposition of high penalty may impact mills’ financial viability and result in shut-down
of operations; (v) paper mills provide livelihood to a large number of workers who are
dependent on mills for their survival; (vi) members mills are Micro, Small and Medium
Enterprises (‘MSMEs’); and (vii) COVID-19 pandemic has brought a great deal of
economic uncertainty and curtailed the business of paper mills.
42.12 The above submissions made by OP-1 shall be considered in the subsequent part of
the present order, where imposition of penalty is dealt with.
43. OP–2 Ramji Board and Paper Mill Private Limited
43.1 It is noted from the DG Report that representatives of OP-2, namely, Mr. Lalit Garg and
Mr. Dinesh Garg, Directors, attended several meetings of GPMA dated 15.02.2017,
15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017,
19.08.2017, 22.11.2017 and 05.04.2018, wherein discussions regarding fixing of prices,
Case No. 24 of 2017 32

shutting down of mills, etc., were held. Mr. Lalit Garg was also the Honorary Secretary
of GPMA from 2015 onwards.
43.2 OP-2 was also named by GPMA as one of its members. Further, OP-2 was one of the
recipients of e-mails dated 30.01.2013, 20.03.2013, 19.06.2013, 29.08.2013,
19.09.2016, 21.11.2016, 06.01.2017, 20.01.2017 and 30.01.2017 sent by GPMA to its
members.
43.3 In his statement recorded before the DG, Mr. Lalit Garg acknowledged as under:
“My company is a member of Gujarat Paper Mills Association, Vapi (GPMA)

and Federation of Indian Paper Recyclers (FIPR). …
… my company and the other Kraft paper manufacturers of Gujarat and
Maharashtra are collectively deciding the price of Kraft paper in collusion
with each other by forming a cartel which lasted till April, 2018. After
formation of GPMA around 15 years back, it gave a platform to the Kraft
paper manufacturers of Gujarat, MP, Maharashtra and Chhattisgarh to
discuss and decide about the price of the Kraft paper. The manufacturers from
Gujarat and Maharashtra including my company used to meet under the
banner of GPMA to decide the price of Kraft paper and shutting down of mills.
…
As a matter of practice, the members of GPMA including the Kraft Paper Mills
of Maharashtra used to meet at different hotels and clubs to decide the price of
Kraft paper and schedule shut-down of the paper mills. The shut-down of the
paper mills was used to be undertaken to control the price of raw material i.e.
waste paper. … The price of Kraft paper was accordingly increased by the
manufacturers of Gujarat and Maharashtra.
I may like to disclose that before receiving notice from your notice, there was a
WhatsApp group of paper mills of Maharashtra, Gujarat and Chhattisgarh.
There was also a WhatsApp group of almost all paper mills across India
including North, South, Hyderabad, MP etc. This group was named as NEWS
(North East West South). In all these groups, the issues regarding price and
shut-down of mills were also used to be discussed.
43.4 Mr. Lalit Garg also provided to the DG copies of circulars dated 25.02.2016,
19.01.2017 and 23.11.2017 issued by OP-2 regarding increase in prices of its Kraft
paper and/or shut-down of the paper mill of OP-2.
43.5 Mr. Lalit Garg was also a member of WhatsApp groups “Paper Mills – GJ/MS/CGK”
and “NEWS Paper Mills”, wherein discussions regarding price of Kraft paper, price of
Case No. 24 of 2017 33

raw material waste paper and collective shut-down of mills took place. One of the
messages sent by Mr. Lalit Garg in the WhatsApp group “Paper Mills – GJ/MS/CGK “,
the screenshot of which was provided by Mr. Rajesh Mahajan, Partner of OP-9 to the
DG, is as follows:
43.6 Even Mr. Omprakash Rathi of OP-3, with respect to Mr. Lalit Garg of OP-2, stated that
“I along with Shri Lalit Garg of Ramji Paper, Shri Nimish Shah of Vaibhav Paper and
Amrutbhai Patel of Sezon Papers Pvt. Ltd, Morbi and certain other representative of
paper mills were admin of Maharashtra, Gujarat and Chhattisgarh WhatsApp group. “
43.7 The Commission also notes that OP-2 is also a lesser penalty applicant in the present
matter. In its suggestions/objections to the DG Report, OP-2 stated that it fully agrees
with the conclusions of contravention of the provisions of the Act by it drawn by the
DG.
43.8 However, it, inter alia, submitted that it collectively decided to increase the sale prices
of Kraft paper as it was bearing losses/low profit margins and was trying to survive in
the market and at the same time employing a large number of workers whose livelihood
depended on the profitable operations of OP-2. Furthermore, the price of raw material
Case No. 24 of 2017 34

waste paper was also constantly on a rise. Its other submissions were largely similar to
those raised by GPMA.
43.9 In view of the Commission, low profit margins can never be an excuse for an entity to
engage into cartel activity. Further, from the financial statements of OP-2 on record, it
is noted that post FY 2009–10, OP-2 was not running into losses from the sale of Kraft
paper in the market.
Commission finds that OP-2 was part of the discussions held at GPMA/FIPR regarding
price increase of Kraft paper and collective shut-down of paper mills, and it also
followed the directions issued by GPMA/FIPR, fully or partially, in this regard. Such
conduct of OP-2 amounts to indirectly determining the sale prices of Kraft paper in
contravention of the provisions of Section 3(3)(a) of the Act and limiting and
controlling the production, supply and market of Kraft paper in contravention of the
provisions of Section 3(3)(b) of the Act, read with Section 3(1) of the Act.
43.11 With respect to penalty, OP-2 submitted that, being a lesser penalty applicant, it had
provided all requisite evidence and co-operation to the DG in the matter and it has
provided full, true and vital disclosures regarding the cartel. Further, mitigating factors
similar to those argued by GPMA, were also submitted by OP-2.
43.12 Such submissions made by OP-2 shall be considered in the subsequent part of the
present order, where imposition of penalty is dealt with.
44. OP–3 (Kaygaon Paper Mills Limited)
44.1 It is noted from the DG Report that representatives of OP-3, namely, Mr. Omprakash
Rathi, Managing Director and his son Mr. Akshay Rathi, Director, attended several
meetings of GPMA dated 15.02.2017, 07.04.2017, 02.06.2017, 25.07.2017,
shutting down of mills, etc., were held. In fact, by his own admission, Mr. Rathi was
representing the paper mills of Maharashtra as the President of the Kraft paper mills of
Maharashtra, in the meetings of GPMA/FIPR. Even Mr. Chetan M. Dhatrak, Partner of
OP-22 and Mr. Banwarilal Kabra, Director of OP-29, stated that the Kraft paper mills
Case No. 24 of 2017 35

of Maharashtra considered Mr. Om Prakash Rathi, being a senior Kraft paper mill
owner, as their leader.
44.2 OP-3 was also named by GPMA as one of its members. Further, it was one of the
recipients of the e-mails dated 30.01.2013, 20.03.2013, 19.06.2013, 29.08.2013,
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
10-11.03.2017 and 18.03.2017 sent by GPMA to its members.
44.3 In his statement recorded before the DG, Mr. Omprakash Rathi acknowledged as under:
“My company represented by me is a member of Gujarat Paper Mills

Association, Vapi (GPMA). … I represent the paper mills of Maharashtra in
the meetings of GPMA as President of Maharashtra Kraft paper mills as
Maharashtra and Gujarat paper mills have common business interest. … Since
I am an experienced person in the Kraft paper industry in the state of
Maharashtra, the other paper mills in the state pay regards to me and consider
me as their President. …
… I would like to state that my company and other paper mills of Gujarat and
Maharashtra (totalling around 125 Kraft paper mills) are collectively deciding
the price of Kraft paper since 2005 till April, 2018. I remember the name of
some of the Kraft paper manufacturers who are part of the aforesaid pricing
arrangement and also attended meetings of GPMA. …
It is submitted that the aforesaid paper mills including my company and
Hardoli Paper Mills Limited and all other paper mills of Gujarat and
Maharashtra used to decide the price of Kraft paper since 2005 under the
banner of GPMA and accordingly the price of Kraft paper used to be
increased. The manufacturers used to meet under the banner of GPMA for
deciding the price of Kraft paper and on many occasions the plants were shut-
down to control the prices of raw material and due to absence of orders in
hand. …
… I would like to mention that there are around 125 manufacturers of Kraft
paper in the state of Gujarat and Maharashtra but all are not attending the
meetings but they are coordinating over phone and email in the decisions taken
by GPMA. All the manufacturers are also not formal members of GPMA but
they are following the decisions of GPMA in consultation with GPMA and
other paper mills.
There have been several such meetings to increase the price of Kraft paper and
shutting down of mills during 2005 to April, 2018.
… I would like to state that the manufacturers of Kraft paper from
Chhattisgarh and MP sometime also used to attend the meetings of GPMA but
Case No. 24 of 2017 36

most of the times these manufacturers used to contact the other paper mills of
Gujarat and Maharashtra for coordinating for the price increase. These paper
mills of Chhattisgarh and MP always used to increase the price in tandem with
Gujarat and Maharashtra Paper Mills.
I would also like to mention that my company used to receive circulars and
notes from GPMA regarding shut-down of mills and increase of Kraft paper
price. … I would further like to disclose that my company also used to issue
circulars and price increase decisions to dealers and customers through emails
and other communication channels as per the decision of GPMA …
I may like to disclose that before receiving notice from your notice, there was a
WhatsApp group of paper mills of Maharashtra and another group of paper
mills of Maharashtra, Gujarat and Chhattisgarh. There was also a WhatsApp
group of almost all paper mills across India including North, South,
Hyderabad, MP etc. This group was named as NEWS (North East West South).
In all these groups, the issues regarding price and shut-down of mills were
used to be discussed. After receiving your notice, I have exited from the
aforesaid WhatsApp groups and deleted the messages.
Yes, I admit that by adopting such practices as disclosed by me in my
statement, my company has committed violation of the provisions of
Competition law for which my company and myself can be penalized.”
44.4 Mr. Omprakash Rathi also provided certain invoices of OP-3 of February and March
2017 as well as e-mails/circulars dated 20.01.2017, 23.02.2017 and 06.03.2017 issued
by OP-3 to the DG regarding increase in prices of its Kraft paper, which shows that OP-
3 increased the prices of its Kraft paper in tandem with the decisions taken by GPMA.
44.5 Mr. Rathi was also a member of WhatsApp groups of paper mill owners of
Maharashtra, “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”, wherein
discussions regarding price of Kraft paper, price of raw material waste paper and
collective shut-down of mills took place. In fact, Mr. Lalit Garg of OP-2, Mr. Sunil
Vasant Chrimade of OP-8 and Mr. Rajesh Modi of OP-48 named Mr. Rathi as one of
the admins of “Paper Mills – GJ/MS/CGK” WhatsApp group.
with the conclusions of contravention of the provisions of the Act by it, as drawn by the
DG. Further, it made certain other submissions which were largely similar to those
raised by GPMA and OP-2.
Case No. 24 of 2017 37

44.7 Based on the evidences collected by the DG as detailed above, the Commission finds
that OP-3 was part of the discussions held at GPMA/FIPR regarding price increase of
Kraft paper and collective shut-down of paper mills, and it also followed the directions
issued by GPMA/FIPR, fully or partially, in this regard. Such conduct of OP-3 amounts
to indirectly determining the sale prices of Kraft paper in contravention of the
of the Act, read with Section 3(1) of the Act.
45. OP–4 (Umesh Board and Paper Mills Private Limited)
45.1 It is noted from the DG Report that the representative of OP-4, namely, Mr.
Satyanarayan Agarwal, Director, attended the meeting of GPMA dated 15.02.2017,
wherein discussions regarding fixing of prices, shutting down of mills, etc., were held.
45.2 OP-4 was also named by GPMA as one of its members, though Mr. Satyanarayan
Agarwal denied this fact. He, however, in his statement recorded before the DG,
acknowledged as under:
“… I have attended certain meetings of Gujarat Paper Mills Association, Vapi

(GPMA)…
… On advice of other Kraft paper mills in the state of Maharashtra, I first time
attended a meeting of GPMA in 2005 wherein various issues related to Kraft
paper industry were discussed. Thereafter, there has been various meetings of
GPMA, some of which I have attended. …
During the meetings decision regarding price increase of the final product i.e.,
Kraft paper used to be discussed and a price circular was generally used to be
issued by GPMA indicating the price of Kraft paper to be increased by the
manufacturers in state of Maharashtra even to non-members. On the advice
and decision taken in the meetings of GPMA, my company and other
Case No. 24 of 2017 38

manufacturers used to increase the price of Kraft paper from 2005 to April,
2018. However, some times the price increased was not to the same extent as
decided by GPMA.
Around December, 2016, GPMA and all paper mills of Gujarat and
Maharashtra including my company also decided to shut-down the mills on
scheduled dates so that the all mills can have orders as there was shortage of
paper. On the direction of GPMA, my company also shut-down the plant on
pre-decided dates at two occasions in 2017 from March 11-15 and Feb. 2 to
05…
Many a times, I was informed through WhatsApp group of GPMA about the
price hike and shut-down of mills. After receiving your notice, I have exited
from the said group.
I would like to clarify that I was also a member of WhatsApp group namely
NEWS Paper Mills, almost all paper mills across India including North, South,
Hyderabad, MP etc. were its members. This group was named as NEWS (North
East West South). In this group also, the issues regarding price and shut-down
of mills were used to be discussed.
Competition law for which my company and myself can be penalised.”
45.3 Mr. Agarwal was also a member of WhatsApp group “NEWS Paper Mills”, wherein
collective shut-down of mills took place. His communication dated 18.03.2018 at
03:51:23 in the said group is also on record which he was confronted with, and which
he did not deny.
DG. It also made certain other submissions which were largely similar to those raised
by GPMA and OP-2.
Case No. 24 of 2017 39

46. OP–5 (Hari Sharnam Trade Links Private Limited)
46.1 OP-5 was named by GPMA as one of its members. Further, in his statement recorded
before the DG, Mr. Nitin Agarwal, Director of OP-5, acknowledged as under:
“I am not a registered member in GPMA due to non-payment of membership

charges, but I attended the meeting couple of times whenever the meeting was
held in Maharashtra.
During the meetings of GPMA, decisions regarding price increase of the final
product i.e., Kraft paper used to be discussed and a price circular was
generally issued by GPMA indicating the price of Kraft paper to be increased
by the manufacturers in state of Maharashtra, even to non-members.
My father used to receive circulars from the associations but I don’t know from
which source he used to get the circulars. On the advice and decisions taken in
the meetings of GPMA, my father Shri Satyanarayan Ji Agrawal used to
convey the prices to me and I used to increase the price of Kraft papers as per
the decision of the association as conveyed by my father from 2009 to April
2018. Even though I started the mill during 2009, yet I have attended GPMA
meetings only couple of times. Shri Omprakash Rathi, Director Kaygaon Paper
Mills Ltd. who is a family friend of mine along with my father Shri
Satyanarayan Ji Agrawal was the only source of information about the
decisions of GPMA for me. The decision of GPMA to increase the price and
closure of mills has been implemented by my company from 2009 till April
2018.
… I recall attending GPMA meeting held on 07.04.2017 at Westin, Mumbai,
specifically. I would also like to state that during the aforesaid meeting the
issue of price hike and closure of mills was discussed. I was agreed to increase
Case No. 24 of 2017 40

the price and shut-down of Mills on schedule dates as discussed with GPMA.
…
Around December, 2016 GPMA and all paper mills of Gujarat and
Maharashtra including my company also decided to shut-down the mills on
scheduled dates so that all mills can have orders as there was shortage of
orders, On the directions of GPMA, my company also shut-down the plant on
pre-decided dates on multiple occasions during 2017. …
I was also a member of WhatsApp group ‘NEWS Paper Mills’ … In the said
group almost all paper mills of Gujarat, Maharashtra, M.P., Chhattisgarh,
North India and South India were members. They used to discuss about the
price to be hiked and shut-down of mills.
Competition law for which my company and I can be penalized.”
46.2 Mr. Nitin Agrawal even admitted to attending some meetings of GPMA/FIPR,
whenever they were held in the State of Maharashtra. He was also a member of
WhatsApp group “NEWS Paper Mills”, wherein discussions regarding price of Kraft
paper, price of raw material waste paper and collective shut-down of mills took place.
DG in the Investigation Report. OP-5 also made certain other submissions which were
largely similar to those raised by GPMA and OP-2.
Case No. 24 of 2017 41

47. OP–6 (Vaibhav Paper Boards Private Limited)
47.1 It is noted from the DG Report that the representative of OP-6, namely, Mr. Nimish J.
Shah, Director, attended several meetings of GPMA dated 15.02.2017, 24.04.2017,
25.07.2017, 19.08.2017, 22.11.2017 and 05.12.2017, wherein discussions regarding
fixing of prices, shutting down of mills, etc., were held. Mr. Shah was also the Vice-
President of GPMA from 2015 onwards.
members.
47.3 In his statement recorded before the DG, Mr. Nimish J. Shah acknowledged as under:
“My company is a registered member in Gujarat Paper Mills Association

(GPMA) and Federation of Indian Paper Recyclers (FIPR). I am the Vice
President of GPMA for the last one and a half years.
… since 2005 my company and the other Kraft paper manufacturers of Gujarat
and Maharashtra are collectively deciding the price of Kraft paper in collusion
with each other by forming a cartel which lasted till April, 2018. I joined the
company as an Executive in 2005 and I have been witnessing the collective
fixing of prices and shutting down of mills since then. …
During the meetings of GPMA discussions held were primarily about price
hike and scheduling of closures of mills. … The decisions regarding price hike
and schedule of shutting down of mills taken in the meetings were conveyed to
the mill owners across Gujarat and Maharashtra through hand given
circulars/emails/telephonic conversations. The price of Kraft paper was
accordingly increased by the manufacturers of Gujarat and Maharashtra.
I would also like to clarify that for the purpose of informing the members of
GPMA and non-member paper mills of Maharashtra, Gujarat, MP and
Chhattisgarh, there was a WhatsApp group formed by GPMA wherein the
decisions of GPMA regarding price hike of Kraft paper and shut-down of mills
were used to be conveyed.
Case No. 24 of 2017 42

There was another WhatsApp group namely ‘NEWS Paper Mills’ wherein
almost all Kraft paper mills of Gujarat, Maharashtra, MP, South India and
Northern India were members. … The decisions taken by GPMA, Northern
India Paper Mills Association, South India and Hyderabad Kraft Paper
Association used to communicate about price hike decision of Kraft paper and
shut-down schedule.
Yes, I admit that by adopting such practices as discussed by me in my
statement, myself as well as my company and GPMA have committed violation
of the provisions of Competition law for which my company myself and GPMA
can be penalized.”
47.4 Mr. Nimish Shah, inter alia, provided to the DG, copies of circulars dated 01.03.2013,
20.03.2013, 19.06.2013, 29.08.2013, 13.02.2014, 13.03.2014, 02.08.2014 and
30.08.2014 issued by OP-6 regarding increase in prices of its Kraft Paper, which shows
that OP-6 increased the prices of its Kraft paper in tandem with the decisions taken by
GPMA.
47.5 He was also a member of WhatsApp groups of Maharashtra Paper Mills, “Paper Mills –
GJ/MS/CGK” and “NEWS Paper Mills”, wherein discussions regarding price of Kraft
Mr. Lalit Garg of OP-2 and Mr. Omprakash Rathi of OP-3 also stated in their
individual statements before the DG that they, along with Mr. Nimish Shah of OP-6
and a few others, were admins of “Paper Mills – GJ/MS/CGK” WhatsApp group.
by GPMA and OP-2.
Case No. 24 of 2017 43

48. OP–7 (Urvashi Pulp and Paper Mills Private Limited)
48.1 It is noted from the DG Report that representatives of OP-7, namely, Mr. Sundeep
Shah, Managing Director, and Mr. Krish Shah, attended several meetings of GPMA
dated 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 02.06.2017,
19.08.2017 and 05.04.2018, wherein discussions regarding fixing of prices, shutting
down of mills, etc., were held.
members.
48.3 In his statement recorded before the DG, Mr. Sundeep Shah acknowledged as under:
“… In context to the instant case, I would like to submit that after my company
became the member of GPMA in 2011, I have attended various meetings of
GPMA wherein hike in the price of the Kraft Paper as well as collective shut-
down of the Mills were discussed and decided with mutual consents of all
members of the association … I used to be informed through email or GPMA
circulars about the price hike and collective shut-down of mills. …
I would like to disclose that in GPMA meetings, certain Kraft Paper mills of
MP, Chhattisgarh and Maharashtra also used to come and discuss about the
price hike of Kraft Paper and collective shut-down of mills during the period
2011 and April 2018. …
… I would also like to disclose that for the purpose of informing the members
of GPMA including the paper mills of Maharashtra, Gujarat, MP and
Chhattisgarh which are not registered members of GPMA, there was a
WhatsApp group formed by GPMA wherein the decisions regarding price hike
Case No. 24 of 2017 44

of Kraft papers and schedule of shut-down of mills used to be conveyed. I was
a member of the said WhatsApp group. Further, there was another WhatsApp
group namely NEWS Paper Mills wherein all Kraft paper mills of
Maharashtra, MP, North India, South India were members. …
… I confirm and admit that in the said group, as can be seen from the
messages, the members used to discuss about the price hike of Kraft Paper,
Price of raw material and shut-down of mills along with other related issues.
…
… I also admit that, although my company has not increased the identical price
as decided by GPMA. However, price up to certain level was hiked for Kraft
Board by my company. Since, I am director in Shree Samrat Paper Mills Pvt.
Ltd., the participation in GPMA meetings by me and the decisions of price hike
taken by it was also followed by Shree Samrat Paper Mills. …
… I admit that my mill was shut-down from 28.01.2017 to 30.01.2017,
13.02.2017 to 15.02.2017, 06.04.2017, 03.05.2017 to 08.05.2017, 02.06.2017
to 06.06.2017 and 01.07.2017 to 03.07.2017 on the directions and decision
taken by GPMA. …
… My company also used to receive circulars issued by GPMA through emails
about the decisions to increase the price of Kraft Paper and shut-down of mills.
…
Regarding Exhibit 14 i.e., email dated 19.09.2016, I admit that on the
directions of GPMA, all Kraft paper mills of Gujarat and Maharashtra
increased their price and issued price increase circulars to their customers and
copies of the same were also provided to GPMA to ensure that the Kraft Paper
mills are following their directions. In this Email, GPMA forwarded 19 such
circulars issued by different paper mills including my company to the
manufacturers of Kraft Paper for their information.
Competition law for which my company and myself can be penalized.”
48.4 Mr Sundeep Shah was also a member of WhatsApp groups “Paper Mills –
48.5 From his e-mail account, a circular dated 10.09.2016 issued by OP-7 regarding price
increase, annexed with e-mail dated 19.09.2016 of GPMA, was also recovered as
below:
Case No. 24 of 2017 45

48.6 Further, an e-mail dated 01.02.2017 sent to GPMA, enclosing the following draft
declaration of OP-7 regarding shut-down of mills, signed by one Mr. Rajnikant,
Manager of OP-7, was also recovered from his e-mail account:
Case No. 24 of 2017 46

matter. In its suggestions/objections to the DG Report, OP-7 admitted to being a part of
the cartel from 2008–09 to 2015–16. It however, stated that post 2016, OP-7 ceased to
be a cartel member as it ceased the sale of Kraft paper for commercial purposes. It
rather confined itself to the manufacture and sale of Kraft board, which is a different
product altogether from Kraft paper, and it made only limited intra-group sale of Kraft
paper to its sister concern Usha Packaging. Further, OP-7 submitted that any
indulgence in the cartel activity even upto 2016 was done unknowingly and without any
intention of contravening the provisions of competition law. No supra normal profits
were made by OP-7. Further, its market share was very limited and as such, its conduct
could not have caused AAEC in the market. Even the total market share of all the
alleged cartel participants is not more than 20%; as such, no AAEC could have been
caused by the alleged cartel conduct of all such members also. OP-7 also made certain
other submissions which were largely similar to those raised by GPMA and OP-2.
48.8 In regard to the submission made by OP-7 regarding it ceasing to be a part of the cartel
since 2016, the Commission observes that admittedly, in 2017 as well as 2018, OP-7
was privy to all the circulars, e-mails and meetings of GPMA/FIPR and Mr. Sundeep
Shah of OP-7 was also a part of the WhatsApp Groups related to co-ordination with
respect to Kraft paper upto 2018. Further, the Commission notes from the DG Report
that there is not much difference between Kraft paper and Kraft board as averred by
OP-7. The raw material used for making both Kraft paper and Kraft board is almost the
same, i.e., waste paper. Though there is some difference in the manufacturing process
and end-usage of both, there is no substantial difference between the two except
thickness, i.e., gsm. As such, the submission made by OP-7 regarding it not being a part
of the cartel post-2016 only because it engaged itself in the manufacturing and sale of
Kraft board, does not seem to be acceptable. As far as the submission of OP-7
regarding participation in the cartel being made unknowingly and unintentionally is
concerned, the Commission is of the view that mens rea is not an ingredient sine qua
non in cartel cases. Regarding the argument of there being no AAEC, the Commission
has already observed above that once an agreement of the types specified under Section
3(3) of the Act is established, the same is presumed to have an AAEC within India,
unless the parties are able to rebut such presumption of AAEC by showing positive
Case No. 24 of 2017 47

effects emanating from the cartel activity in terms of the factors stated under Section
19(3) of the Act i.e., accrual of benefits to the consumers, improvement in production
or distribution of goods or provision of services, or promotion of technical, scientific
and economic development by means of production or distribution of goods or
provision of services. On a holistic evaluation of the submissions made by OP-7, the
Commission is of the view that in the present matter, OP-7 has not been able to
dislodge such statutory presumption by adducing cogent evidence evidencing either of
the above. Hence, it is axiomatic to presume that the impugned conduct of the parties
caused AAEC within India in the present matter.
49. OP–8 (Gayatri Paper Mill)
49.1 It is noted from the DG Report that representatives of OP-8, namely, Mr. Sunil
Chrimade, Partner, and Mr. Manoj Anand Kale, attended the meeting of GPMA dated
15.02.2017, wherein discussions regarding fixing of prices, shutting down of mills, etc.,
were held.
49.2 OP-8 was also named by GPMA as one of its members. Further, in his statement
recorded before the DG, Mr. Sunil Chirmade, acknowledged as under:
Case No. 24 of 2017 48

“I am not a registered member of Gujarat Paper Mills Association (GPMA)
but I have attended several meetings of the association. … Normally, in GPMA
meetings discussions pertained to waste paper prices, shortage of waste paper,
price of imported raw material, price hike of Kraft paper, schedule of shut-
down of mills etc.
… I attended the meeting of GPMA for the first time with Sh. Omprakash Rathi,
Kaygaon Paper Mills Ltd. and I witnessed the discussions about price hike and
schedule of shutting down of mills in 2014 in Mumbai. I also witnessed that
various mills from Maharashtra and Gujarat attend the meetings and actively
participate in the discussions. During the meetings of GPMA, discussions held
were primarily about decisions related to price hike and schedule of shutting
down of mills. …
… but I used to get the information through telephonic calls/text messages from
other mill owners. I along with the other Kraft manufacturers across Gujarat,
Maharashtra and MP used to fix the price of Kraft papers according to the
decisions taken in GPMA meetings.
… I would also like to state that to convey the decisions of GPMA I used to
organize certain meetings locally for the paper mills in Jalgaon itself and
discuss about the price hike and shutting down of mills. On the directions of
GPMA I have hiked the prices and closed my mill several times during 2017.
Closure dates as per directions of GPMA.
Jan 28th to 31st 2017
Feb 12th to 15th 2017
March 12th to 15th 2017
May 3rd to 7th 2017
June 2nd to 6th 2017
July 1st to 4th 2017
August 1st to 5th 2017
… I would also like to state that on a few occasions, employees of member
mills of GPMA visited my firm to inspect about the adherence of the decision of
shut-down of mills as per the schedule decided in GPMA meetings.
… I would also like to state that for the purpose of conveying the decisions
regarding price hike and schedule of shut-downs taken in GPMA meetings,
there was a WhatsApp group namely ‘Maharashtra Paper Mills’ of which I
was also a member along with other mills from Maharashtra. …
statement, myself as well as my firm have committed violation of the provisions
of Competition law for which my firm and myself can be penalized.”
Case No. 24 of 2017 49

49.3 He also provided e-mails dated 10.01.2017, 19.01.2017 and 24.02.2017 to the DG,
issued by OP-8 regarding increase in prices of its Kraft paper.
49.4 He was also a member of WhatsApp group of the paper mill owners of Maharashtra,
wherein decisions of GPMA regarding price hike of Kraft paper and collective shut-
down of mills, were conveyed. In fact, as per Mr. Omprakash Rathi of OP-3, Mr. Rathi,
along with Mr. Sunil Chirmade of Gayatri Paper Mill, Jalgaon and certain others, were
the admins of this WhatsApp group.
DG in the Investigation Report. Further, it made certain other submissions which were
49.7 With respect to penalty, OP-8 submitted that being a lesser penalty applicant, it had
50. OP–9 (Anantkrupa Paper Products)
50.1 It is noted from the DG Report that the representative of OP-9, namely, Mr. Rajesh
Mahajan, Partner, attended the meeting of GPMA dated 15.02.2017, wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held.
Case No. 24 of 2017 50

13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
50.3 In his statement recorded before the DG, Mr. Rajesh Mahajan acknowledged as under:
“In the meetings of GPMA which were attended by me, the attendees were the
Kraft paper manufacturers of Gujarat, Maharashtra and MP.
In all these meetings which I started attending from 2013, the attendees used to
discuss about the common business-related issues and also used to discuss
about collective price hike of Kraft paper and collective shut-down of mills and
measures to enforce the decisions of GPMA.
After the meetings, GPMA used to issue circulars to all the manufacturers of
Kraft paper from Gujarat and Maharashtra and also to the other attendees of
the meetings about the decided price hike of the Kraft paper or schedule of
shut-down of mills.
Sometimes decisions of GPMA used to be conveyed through emails and
personal SMSs by other Kraft paper mills and through WhatsApp messages. As
per GPMA decision I used to increase the price of Kraft paper and shut-down
my factory. On two occasions, GPMA send Sri. Soma Vamshi of Gajanan
Paper Mills to my factory, to ensure that my factory has been shut-down as per
their schedules. After the price hike of Kraft paper as decided in GPMA
meetings my mill issued circular to the customers …
Even though I used to increase the prices as per GPMA’s schedule, yet the
quantum of increase need not always be at par with their circulars. …
I am submitting hard copy of screenshots of the messages on WhatsApp group
namely “Paper Mills – GJ/MS/C.G.K.” (Exhibit 3 Colly) operated by GPMA
officials. Through this WhatsApp group GPMA used to send matters related to
price hike of Kraft paper, scheduled shutting down of mills, price of waste
paper, its shortage, raw material issues, technical matters etc to all the group
members, including myself. …
statement, myself as well as my company have committed violation of the
provisions of Competition law for which my mill and myself can be penalised.
… I would use these circulars as guidelines and would then issue price
circulars to my customers, keeping in mind my firm’s commercial situation and
consideration …”
Case No. 24 of 2017 51

50.4 Mr. Rajesh Mahajan also provided to the DG, copies of circulars dated 05.01.2017,
20.01.2017, 20.02.2017, 05.12.2017 and 29.12.2017 issued by OP-9 regarding increase
in price of its Kraft paper and screenshots of messages exchanged in the WhatsApp
group “Paper Mills – GJ/MS/CGK”, of which he was a member and in which,
collective shut-down of mills took place. Further, from his e-mail account, e-mails
dated 30.01.2013, 20.03.2013, 19.06.2013, 29.08.2013, 13.02.2014 and 26.11.2016 sent
by GPMA containing price hike circulars, were also recovered.
DG. However, it made certain other submissions which were largely similar to those
51. OP–10 (Nice Papers Limited)
51.1 It is noted from the DG Report that the representative of OP-10, namely, Mr. Rajesh
Patel, Director, attended the meeting of GPMA dated 15.02.2017, wherein discussions
Case No. 24 of 2017 52

regarding fixing of prices, shutting down of mills, etc., were held. The DG has, in fact,
noted that Mr. Rajesh Patel was appointed as the Joint Treasurer of FIPR in
GPMA/FIPR meeting dated 15.03.2017.
51.2 OP-10 was also named by GPMA as one of its members though this fact was denied by
OP-10. Further, it was one of the recipients of e-mails dated 16.02.2016, 09.09.2016,
06.01.2017 and 30.01.2017 sent by GPMA to its members.
51.3 In his statement recorded before the DG, Mr. Umesh Patel, Director of OP-10,
“… I also supported the decision of GPMA by increasing prices and shutting

down mills, in spite of not actively participating in any of GPMA meetings
before, because the other mills in Nagpur were also following the decision of
GPMA.
On behalf of my company, my brother who is also one of the directors of the
company attended a GPMA meeting in February 2017. In the meeting, he
witnessed discussions pertaining to price hike, schedule of shut-downs and
other general issues related to the industry. …
… I used to get the information through emails/WhatsApp/telephone from other
mill owners. I along with the other Kraft manufacturers across Gujarat,
Maharashtra, MP and Chhattisgarh used to fix the price of Kraft papers
according to the decisions taken in GPMA meetings.
I would also like to state that, on the directions of GPMA, I stopped the
production at our mill on multiple occasions i.e. 26th Jan to 30th Jan, 2017,
12th Feb to 16th Feb, 2017 and 11th March to 15th March 2017. …
… I would like to state that I was a member of a WhatsApp group namely
‘NEWS Paper Mills’. …
provisions of Competition law for which my company and myself can be
penalized.”
51.4 Mr. Patel also provided to the DG, copy of price hike circulars dated 28.02.2017 issued
by OP-10 and from his e-mail account, e-mails of GPMA dated 21.11.2016, 18.03.2017
and 12.04.2017 were also recovered. In the e-mail dated 18.03.2017, MoM dated
15.03.2017 were shared while in the e-mail dated 12.04.2017, MoM dated 07.04.2017
was shared.
Case No. 24 of 2017 53

51.5 Mr. Patel was also a member of WhatsApp groups “Paper Mills – GJ/MS/CGK” and
“NEWS Paper Mills”, wherein discussions regarding price of Kraft paper, price of raw
material waste paper and collective shut-down of mills took place.
issued by GPMA/FIPR, fully or partially, in this regard. Such conduct of OP-10
52. OP–11 (Awade Industries Private Limited)
52.1 It is noted from the DG Report that representatives of OP-11, namely, Mr. Sudharm
Shetty, Marketing Manager, and Mr. Ravi Awade, Managing Director, attended several
02.06.2017, 25.07.2017, 05.12.2017, 25.12.2017 and 05.04.2018, wherein discussions
regarding fixing of prices, shutting down of mills, etc., were held.
Case No. 24 of 2017 54

13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.07.2017,
52.3 In his statement recorded before the DG, Mr. Ravi Awade acknowledged as under:
“I am not a formal member of GPMA (Gujarat Paper Mills Association), Vapi,

but I used to attend its meetings held in Mumbai. I am a member of FIPR
(Federation of Indian Paper Recyclers) and I have paid its annual subscription
fee. … I started attending the meetings of GPMA since 19.01.2017 which was
held in Hotel Novotel at Juhu, Mumbai. I have personally attended altogether
four meetings held in Mumbai on 19.01.2017, 02.06.2017, 05.12.2017 and
05.04.2018 (the last two meetings dated 05.12.2017 and 05.04.2018 were
conducted under the aegis of FIPR). The meetings of GPMA held on
15.02.2017, 15.03.2017, 07.04.2017, 05.05.2017, 02.06.2017 and 25.07.2017
were attended by Shri Sudharm Shetti, Marketing Manager of the company on
my directions. The meetings of FIPR held on 05.12.2017, 25.12.2017 and
05.04.2018 were also attended by Shri Sudharm Shetti on my directions. …
… The decisions of GPMA regarding price rise and shutting down schedules
were communicated to the mill owners through circulars sent by email.
… On 26.11.2016, the decision of rate increase by GPMA was communicated
to Awade Industries Pvt. Ltd. through a circular dated 25.11.2016 by email.
The other circulars issued by GPMA and received by AIPL are annexed
(Exhibit 4 colly). After receiving the circular, I decided to implement the
decision to increase the price of Kraft paper by Rs.1000/- per MT with effect
from 28.11.2016 and authorized Shri Sudharm Shetti, Marketing Manager to
issue circulars to our customers/dealers regarding the price rise. Thereafter,
also as and when we decided to increase the price of Kraft Paper the decision
was communicated to our customers/dealers through circulars …
In some of the aforesaid meetings (Exhibit 1 colly), the attendants also used to
discuss the price increase of Kraft Paper, and closure of mills and the
measures to implement the decisions of GPMA. I also personally attended
some of the aforesaid meetings of GPMA regarding price increase of Kraft
Paper and closure of the mills. My company followed the decision of GPMA
regarding price rise till March 2017 and closure of mills till June 2017.
However, even after March 2017 the meetings of GPMA/FIPR were attended
by our company.
Our manufacturing plant was also shut-down during 27th to 31st January 2017
(5 Days), 11th to 15th February 2017 (5 Days), 11th to 14th March 2017 (4
Days), 05th to 11th April 2017 (7 Days), 02nd to 08th May 2017 (7 Days) and
02nd to 06th June 2017 (5 Days) on the directions of GPMA on the circulars
issued by them. …
Case No. 24 of 2017 55

I also communicated the price rise of Kraft Paper through WhatsApp groups
namely “Maharashtra Paper Mills”, “Paper Mills – GJ/MS/C.G.K” operated
by GPMA officials and “Kolhapur Paper Mills Association”. The members of
the above WhatsApp groups used it as a platform to communicate the decisions
and proceedings of the meetings. …
At the time of occurrence, I was not aware of the Competition Act. However,
after receiving the notice, I learned that such practices as discussed by me in
my statement are in violation of the provisions of Competition Act.”
52.4 Mr. Ravi Awade also provided to the DG, copies of price hike circulars of OP-11 dated
08.08.2016, 28.11.2016, 06.12.2016, 30.12.2016, 21.01.2017, 22.02.2017 and
18.03.2017 and copies of shut-down circulars of OP-11 dated 07.12.2016 and
11.02.2017.
52.5 He was also a member of WhatsApp groups of Maharashtra Paper Mills, “Paper Mills –
GJ/MS/CGK” and of Kolhapur Paper Mills Association, wherein discussions regarding
price of Kraft paper, price of raw material waste paper and collective shut-down of
mills took place. He also provided to the DG, screenshots of messages exchanged in the
WhatsApp group Kolhapur Paper Mills Association, some of which are reproduced
below:
Case No. 24 of 2017 56

The above WhatsApp messages clearly indicate that decisions regarding collective
shut-down of mills and increase in price of Kraft paper also used to be taken at local
level associations like Kolhapur Paper Mills Association in consonance with or after
the decision of GPMA.
DG. OP-11 also made certain other submissions which were largely similar to those
53. OP–12 (Hardoli Paper Mills Limited)
53.1 It is noted from the DG Report that the representative of OP-12, namely, Mr. Kailash
Agarwal, Managing Director, attended several meetings of GPMA dated 15.02.2017,
15.03.2017, 07.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 05.12.2017 and
were held.
Case No. 24 of 2017 57

13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 10-
53.3 In his statement recorded before the DG, Mr. Anilkumar Murarilal Lakhotiya, Joint
Managing Director of OP-12, acknowledged as under:
“Hardoli Paper Mills Ltd. (HPML) is a member of Gujarat Paper Mills

Association (GPMA), Vapi since 2009. My company is also a member of
Federation of Indian Paper Recyclers (FIPR) since 2017. … Since 2009 all the
meetings of GPMA were attended by Mr. Kailash Chandra Agrawal, Managing
Director only. …
I came to know from my Managing Director that in GPMA meetings,
discussions were based on cost of Kraft Paper, raw material, Power, Coal,
Chemicals and other routine expenses, collective price rise of Kraft Paper,
coordinated shut-down of Mills.
… GPMA vide its various circulars dated 07.04.2009, 08.02.2010, 21.02.2010,
18.12.2010, 20.03.2013,13.03.2014, 03.03.2015 and 16.02.2016 (Exhibit
1colly) directed its member mills and all other paper mills of Maharashtra and
Gujarat including HPML to increase the selling price of all grades of Kraft
Paper. However, all the member mills of GPMA including HPML have
increased the prices not exactly as per the directions of GPMA but as per the
individual situations of the member mills. However, there has been price
increase after GPMA directions.
After receiving the circulars from GPMA, myself and Mr. Kailash Chandra
Agrawal used to discuss about the implementation of price rise of Kraft Paper
in our company and accordingly HPML issued circulars to its
dealers/customers. …
HPML also shut-down its manufacturing plant of Kraft Paper during specific
periods from January 2017 to July 2017 as per the directions of GPMA as
detailed below:
S. No. Shut-down Period Number of days
1. 27.01.2017 to 31.01.2017 5
2. 11.02.2017 to 15.02.2017 5
3. 11.03.2017 to 15.03.2017 5
4. 05.04.2017 to 08.04.2017 4
5. 02.05.2017 to 08.05.2017 7
6. 02.06.2017 to 06.06.2017 5
Case No. 24 of 2017 58

7. 01.07.2017 to 04.07.2017 4
Total 35
… In the said meeting the members as well as non-members unanimously
decided to continue the shut-down schedule till December 2017 and each shut
in a month should be of 7 days. It was also decided in the meeting that the shut-
down for the month of May 2017 would be from 02.05.2017 to 08.05.2017 for 7
days.
… There was a monitoring committee made by GPMA for monitoring the
implementation of shut-down schedule of the Kraft Paper Mills. …
Yes, I admit that by adopting the above practices as disclosed by me in my
Competition Law for which myself and my company can be penalized.”
53.4 Mr. Lakhotiya also provided copies of price hike circulars of OP-12 dated 06.08.2014,
25.02.2016, 24.02.2017, 25.07.2017, 20.11.2017 and 05.12.2017 to the DG. The DG
also noted that Mr. Om Prakash Rathi, Managing Director of OP-3, was also one of the
Directors in OP-12.
by GPMA and OP-2.
Case No. 24 of 2017 59

54. OP–13 (Devang Paper Mills Private Limited)
54.1 It is noted from the DG Report that representatives of OP-13, namely, Mr. Thoban K.
Patel, Director and his son Mr. Devang Patel, attended several meetings of GPMA
dated 15.03.2017, 28.03.2017, 07.04.2017, 05.05.2017, 02.06.2017, 25.07.2017,
shutting down of mills, etc., were held.
members.
54.3 In his statement recorded before the DG, Mr. Thoban K. Patel acknowledged as under:
“Since 2011, my company is a member of Gujarat Paper Mills Association

(GPMA), Vapi. My company is also a member of Federation of Indian Paper
Recyclers (FIPR), Vapi. Most of the meetings of GPMA/FIPR are being
attended by me. In my absence Shri Devang T. Patel used to attend the above
meetings. …
I personally attended GPMA/FIPR meetings since 2011. In GPMA/FIPR
meetings we used to discuss matters related to the problems being faced by
Kraft Paper Mills, shortage of raw material, price increase of raw material,
delay in receipt of payments from dealers/corrugators, government policies,
regulations, technical issues, pollution problems, shortage of supply orders
from customers, collective shutting down of Kraft Paper Mills etc. The
decisions being taken in the above meetings were conveyed through email
messages.
I was a member of the WhatsApp group namely “Paper Mills –
GJ/MS/C.G.K.” operated by GPMA officials. …
On receipt of various circulars from GPMA/FIPR, I have implemented the
decision of price hike and planned shutting down of mills taken in GPMA/FIPR
meetings after internal discussion with the other directors as well as marketing
people …
Yes, my company implemented the shut-down schedule of its manufacturing
plant on the directions of GPMA during the following periods:
27.01.2017 to 31.01.2017 (5 days)
Case No. 24 of 2017 60

11.02.2017 to 15.02.2017 (5 days)
11.03.2017 to 15.03.2017 (5 days)
05.04.2017 to 11.04.2017 (7 days)
02.05.2017 to 08.05.2017 (7 days)
01.06.2017 to 06.06.2017 (6 days)
27.06.2017 to 30.06.2017 (4 days)
A monitoring committee was also formed to implement the decisions of GPMA
regarding shut-down of manufacturing plants of Kraft paper. The committee
consists of 2 persons who used to visit various manufacturing plants of other
areas to ensure the implementation of the shutting down schedule. Similarly, 2
persons from Morbi area visited my plant every time to ensure the
implementation of shutting down schedule and also checked the electricity
meter.
statement, myself as well as my firm have committed violation of the provisions
of Competition Law for which my firm and myself can be penalized.”
54.4 Mr. Thoban Patel also provided copies of price hike circulars of OP-13 dated
20.01.2017, 04.03.2017, 26.07.2017, 14.02.2017 and 26.12.2017 to the DG.
54.5 Mr. Patel was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”
wherein discussions regarding price of Kraft paper, price of raw material waste paper
and collective shut-down of mills took place. He also provided screenshots of certain
messages exchanged in the said group.
Case No. 24 of 2017 61

55. OP–14 (Sukraft Papers Private Limited)
55.1 In his statement recorded before the DG, Mr. Sunil Patel, Director of OP-14,
“My company is a member of Gujarat Paper Mills Association

(GPMA)/Federation of Indian Paper Recyclers (FIPR), Vapi. Most of the
meetings of GPMA/FIPR are being attended by Mr. Karshanbhai Patel a.k.a.
Babubhai Patel. In some of the meetings of GPMA Mr. Praveenbhai Patel and
Mr. Bhavesh Patel, employees of the company also attended. …
… After receiving the circulars from GPMA/FIPR through email … I used to
discuss with Mr. Karshanbhai Patel a.k.a. Babubhai Patel and Mr. Manoj
Patel regarding the implementation of the price rise of Kraft Paper.
Accordingly, our company issued circulars (Exhibit 2 colly) to its
dealers/corrugators regarding price rise of Kraft Paper …
I was a member of WhatsApp group namely “Paper Mills – GJ/MS/C.G.K.”
operated by GPMA officials. … My manufacturing plant of Kraft Paper was
also shut-down on the direction of GPMA/FIPR during the following periods:
1. 27.01.2017 to 31.01.2017 (5 days)
2. 12.02.2017 to 16.02.2017 (5 days)
3. 11.03.2017 to 15.03.2017 (5 days)
4. 05.04.2017 to 13.04.2017 (9 days)
5. 05.05.2017 to 10.05.2017 (6 days)
6. 01.06.2017 to 07.06.2017 (7 days)
7. 27.06.2017 to 03.07.2017 (7 days)
provisions of Competition Law for which my company and myself can be
penalized.”
Case No. 24 of 2017 62

55.2 Mr. Sunil Patel also provided copies of price increase circulars of OP-14 dated
25.02.2016, 22.11.2016, 28.11.2016, 19.01.2017, 16.02.2017, 04.03.2017 and
16.03.2017 to the DG and e-mails dated 26.07.2017, 15.09.2017 and 26.12.2017
communicating price increase to its dealers were also recovered from his e-mail
account.
55.3 Mr. Patel was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”
and collective shut-down of mills took place.
56. OP–15 (Ravi Kiran Paper Mills Private Limited)
56.1 It is noted from the DG Report that representatives of OP-15, namely, Mr. Amar
Karyappa, Mr. Shrinivas Ashtekar, Mr. Niraj Kannure and Mr. Ashutosh Udgaonkar,
Case No. 24 of 2017 63

Directors, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
recipients of the e-mail dated 18.03.2017 sent by GPMA to its members.
56.3 In his statement recorded before the DG, Mr. Amar Karyappa acknowledged as under:
“My company was a member of Gujarat Paper Mills Association

(GPMA)/Federation of Indian Paper Recyclers (FIPR), Vapi since November
2016 till August 2017. …
In GPMA/FIPR meetings the main issues being discussed are the problems
being faced by Kraft Paper industries such as environmental issues, labour
related matters, production cost, selling price of Kraft Paper, waste paper
price, shutting down schedule of mills, delay in receipt of payment from the
dealers/corrugators etc. …
… After attending GPMA/FIPR meetings by me, I used to discuss the main
decisions being taken in the said meetings among the four directors and my
company conveyed the decision of price hike to its dealers/corrugators through
email messages. I was also a member of the WhatsApp group namely “Paper
Mills – GJ/MS/C.G.K.” operated by GPMA/FIPR officials. GPMA/FIPR used
to communicate their decisions through WhatsApp messages to my company
regarding price hike/shutting down schedule in the above-mentioned WhatsApp
group. …
… My company also implemented the shutting down schedule of its
manufacturing plant of Kraft Paper on the directions of GPMA/FIPR during
the following periods:
1. 27th to 31st January 2017 (5 days)
2. 11th to 15th February 2017 (5 days)
3. 09th to 14th March 2017 (6 days)
4. 06th to 11th April 2017 (6 days)
5. 02nd to 07th May 2017 (6 days)
6. 02nd to 07th June 2017 (6 days)
7. 27th to 30th June 2017 (4 days)
In order to ensure that all the Kraft Paper mills complied with the decisions of
GPMA/FIPR, there was a monitoring committee formed by the association. It
was decided in GPMA/FIPR meetings to impose a monetary penalty on those
defaulting mills, but the same was not imposed on any of the mills. Even one of
the representatives from GPMA once visited my factory in order to ensure that
Case No. 24 of 2017 64

my plant was not functioning during the shutting down schedule fixed by
GPMA.
statement my company and myself as an individual have committed violation of
the provisions of Competition Law for which my company and myself can be
penalized.”
56.4 Mr. Karyappa also provided to the DG copies of price increase e-mails dated
30.01.2017, 22.02.2017 and 16.03.2017, sent by OP-15 to its dealers.
56.5 He was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”, wherein
collective shut-down of mills took place.
raised by GPMA and OP-2. Also, OP-15 submitted that unlike GPMA and other paper
mills, it joined the cartel arrangement at a much later date in November, 2016.
Case No. 24 of 2017 65

57. OP–16 (Bedse Pulp Conversion Industries Private Limited)
57.1 It is noted from the DG Report that the representative of OP-16, namely, Mr. Ashok
Patil, Managing Director, attended the meeting of GPMA dated 15.03.2017, wherein
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
57.3 In his statement recorded before the DG, Mr. Ashok Patil acknowledged as under:
“I am a member of Gujarat Paper Mills Association (GPMA) since 2010. I

have attended only 3-4 meeting of GPMA. I never attended any of the
Federation of Indian Paper Recyclers (FIPR) meetings. I have attended the
first meeting of GPMA during 2010-11 and the last meeting of GPMA which I
attended was on 15.03.2017. …
… The issues being discussed in GPMA meetings are non-availability of waste
paper, delay/default in payments from dealers/corrugators, price of Kraft
paper, shutting down of mills, increased cost of raw materials such as
local/imported waste paper, chemicals, coal, electricity, man power etc.,
pollution issues, taxation issues etc.
After GPMA meetings I used to receive circulars from the above association
through courier. … My company having a very small manufacturing plant of
Kraft paper, used to intimate price hike of Kraft paper to my
dealers/corrugators over telephone after receiving the circulars from GPMA. I
have implemented GPMA decision regarding price hike and shutting down
schedule of Kraft paper mills since 2010 to April’2018. …
After GPMA meetings held during January to March 2017, it was also decided
to shut-down the Kraft paper mills collectively. As per the instructions from
GPMA I have implemented the above decision and shut-down my Kraft paper
mill during the following periods:
1. 27.01.2017 to 30.01.2017 (4 days)
2. 11.02.2017 to 13.02.2017 (3 days)
3. 12.03.2017 & 13.03.2017 (2 days)
penalized.”
Case No. 24 of 2017 66

DG in the Investigation Report. OP-16 made certain other submissions which were
58. OP–17( Khandesh Paper Mills Private Limited)
58.1 OP-17 was named by GPMA as one of its members though OP-17 denied this fact.
Further, it was one of the recipients of the e-mails dated 09.09.2016 and 26.11.2016
sent by GPMA to its members.
58.2 In his statement recorded before the DG, Mr. Kiran Kashinath Patil, Managing Director
of OP-17, acknowledged as under:
“I personally attended most of GPMA meetings during 2007 to 2017, but I am

not having any documentary evidence such as minutes of the above meetings.
… In GPMA meetings attended by me the points being discussed are price of
waste paper, shortage of waste paper, increase in the price of chemicals,
coal/fire wood, power, low price of Kraft paper, delay in payment from the
dealers/corrugators, collective shutting down of Kraft paper mills etc. After
Case No. 24 of 2017 67

some of GPMA meetings I received circulars regarding price hike of Kraft
paper …
I am a part of the cartel from 2007 till March 2016. After GPMA meetings
during the above period I also implemented the decision of collective price rise
of Kraft paper as decided in the above GPMA meetings. On receipt of price
hike circular from GPMA (Exhibit-1 colly), I used to intimate the same to my
dealers/corrugators over telephone and hence I do not have any record of the
above. Till March 2016, GPMA has never taken any decision regarding
collective shutting down of Kraft paper mills. I was a member of the WhatsApp
group namely “Paper Mills – GJ/MS/C.G.K” operated by GPMA/FIPR
officials and I used to receive messages from the association regarding
meetings/price hike/shutting down of Kraft paper mills etc. …
penalized.”
58.3 Mr. Patil was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
by GPMA and OP-2.
Case No. 24 of 2017 68

59. OP–18 (Godavari Pulp and Paper Mills Private Limited)
59.1 It is noted from the DG Report that the representative of OP-18, namely, Mr. Pankaj
Mansingka, Managing Director, attended several meetings of GPMA dated 15.02.2017,
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 10-
59.3 In his statement recorded before the DG, Mr. Mansingka acknowledged as under:
“I have attended some of the meeting GPMA before 2017 but I cannot recall
the exact date of the meetings. …
In GPMA/FIPR meetings, Kraft paper mill owners belongs to Gujarat,
Maharashtra, Chhattisgarh states used to attend the meetings and discuss the
issues regarding increase/decrease the rate of Kraft paper as well as shutting
down of mills. After GPMA/FIPR meetings they issued circulars to the Kraft
papermills regarding price hike of Kraft paper during 23.04.2011 to
16.02.2016 …
… Out of the total of 11 circulars received by my company from GPMA during
the period 23.04.2011 to 16.02.2016, I cannot confirm at the moment
regarding the implementation of the first 5 circulars from 23.04.2011 to
29.08.2013. However, regarding the remaining 6 circulars from 13.02.2014 to
16.02.2016 I have implemented the price rise only on two occasions and even
decreased the price on three occasions. …
Regarding the collective shutting down of Kraft paper mills as directed by
GPMA/FIPR, I am furnishing the details of shutting down of my mill
implemented partially as per the following dates: -
S. No. Date of closure Total days
1. 28.01.2017 to 30.01.2017 3
2. 12.02.2017 to 14.02.2017 3
Case No. 24 of 2017 69

3. 13.03.2017 to 15.03.2017 3
4. 05.04.2017 to 10.04.2017 6
5. 02.05.2017 to 07.05.2017 6
6. 02.06.2017 to 05.06.2017 4
7. 28.06.2017 to 30.06.2017 3
8. 02.08.2017 to 04.08.2017 3
Total 31
I was a member of the WhatsApp group namely “Paper Mills – GJ/MS/C.G.K”
operated by GPMA/FIPR officials and I used to receive messages from the
association regarding meetings/price hike/shutting down of Kraft paper mills
etc. …
I attended the meetings of GPMA as a Kraft paper mill owner. I came to know
about the meetings through messages exchange on WhatsApp group namely
“Paper Mills - GJ/MS/C.G.K”. Before the start of WhatsApp, I used to get
information about the meeting dates from the other paper mill owners/dealers.
…
Yes, I am now aware. I admit that by adopting such practices as discussed by
me in my statement my company and myself as an individual have committed
violation of the provisions of Competition Law for which my company and
myself can be penalized.”
59.4 Mr. Mansingka also provided copies of price hike circulars of OP-18 dated 04.02.2011,
06.12.2016, 15.02.2017, 04.03.2017, 15.03.2017 and 27.07.2017 to the DG.
59.5 Mr. Mansingka was also a member of WhatsApp group “NEWS Paper Mills”, wherein
collective shut-down of mills took place.
DG in the Investigation Report. Further, OP-18 made certain other submissions which
were largely similar to those raised by GPMA and OP-2. OP-18 also submitted that it
only partially complied with the directions issued by GPMA, that too because of the
threat of imposition of penalty by GPMA for non-compliance.
59.7 The Commission noted that such directives were actually issued by GPMA and were
known to OP-18. As stated above, the provisions of Section 3(1) of the Act not only
proscribe agreements which cause an AAEC in the market, but also forbid agreements
Case No. 24 of 2017 70

which are likely to cause an AAEC in the market. Since the very knowledge of OP-18
regarding such directives compromises its independence regarding the commercially
sensitive decisions and accordingly, the same was likely to cause AAEC in India.
60. OP–19 (Sunshine Pap–Tech Private Limited)
60.1 It is noted from the DG Report that representatives of OP-19, namely, Mr. Praveen
Patel, Managing Director, his son Mr. Bhavik Patel, Mr. Manoj Patel and Mr. Arun
Agarwal, employees of OP-19, Mr. Jayesh Patel, Director, and Mr. Shankar Patel,
attended several meetings of GPMA dated 15.02.2017, 15.03.2017, 07.04.2017,
05.05.2017, 02.06.2017, 25.07.2017 and 05.04.2018 wherein discussions regarding
fixing of prices, shutting down of mills, etc., were held.
60.2 OP-19 was also named by GPMA as one of its members. Further, one of its employees
was a recipient of the e-mail dated 06.01.2017 sent by GPMA to its members.
60.3 In his statement recorded before the DG, Mr. Praveen Patel acknowledged as under:
“I am not an official member of Gujarat Paper Mills Association (GPMA), but

I have attended around 10 meetings of GPMA. Members as well as non-
members used to attend the meetings of GPMA. All the mill owners from the
states of Gujarat, Maharashtra and Chhattisgarh are allowed to attend GPMA
Case No. 24 of 2017 71

meetings. I used to receive the information regarding the schedule of GPMA
meetings over telephone from Sh. Om Prakash Rathi of Kaygaon Paper Mills
Ltd., Aurangabad, Maharashtra. Sh. Manoj Patel and Sh. Arun Agarwal,
employees of the company have also attended the meetings of GPMA,
sometimes along with me. Sh. Bhavik Patel, my son also attended GPMA
meeting on 07.04.2017. I am a member of Federation of Indian Paper and
Recyclers (FIPR) and I have also paid membership fee to FIPR.
… I used to receive the communications from GPMA/FIPR regarding price
hike of Kraft paper and shutting down of mills through WhatsApp messages.
Some other occasions Sh. Arun Agarwal, sales person of the company and Sh.
Manoj Patel, Finance person of the company used to receive communications
from GPMA/FIPR and they used to convey the messages to me as well as to
other Directors of the company.
After attending some of the meetings I used to discuss about the outcome of the
meetings of GPMA/FIPR with my other of Directors of the company. Myself
and other Directors jointly discuss the price hike of Kraft paper and final
decision to implement the price hike and shut-down of mills was taken by Sh.
Arun Agarwal, sales person of the company and Sh. Manoj Patel, Finance
person of the company. … The above mentioned circulars were issued by my
company as per the direction of GPMA. My company also implemented shut-
down schedule as directed by GPMA during following periods:
1. 28.01.2017 to 30.01.2017.
2. 12.02.2017 to 16.02.2017.
3. 12.03.2017 to 15.03.2017.
4. 06.04.2017 to 10.04.2017.
5. 05.05.2017 to 08.05.2017.
6. 02.06.2017 to 06.06.2017.
I am submitting hard copies of transcript of WhatsApp group namely “Paper
Mills – GJ/MS/C.G.K” (Exhibit - 3) operated by GPMA/FIPR officials and I
used to receive messages from the association regarding meetings/price
hike/shutting down of Kraft paper mills etc. …
At that time, I was not aware of the Law, but now I am aware. I admit that by
adopting such practices as discussed by me in my statement, my company and
myself as an individual have committed violation of the provisions of
Competition Law for which my company and myself can be penalized.”
60.4 Mr. Praveen Patel also provided copies of price hike circulars dated 01.07.2016,
01.02.2017, 17.02.2017, 04.03.2017, 23.05.2017 and 03.06.2017 issued by OP-19 on
the directions of GPMA to the DG.
Case No. 24 of 2017 72

60.5 Mr. Patel was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
by GPMA and OP-2.
61. OP–20 (Padmavati Pulp and Paper Mills)
61.1 It is noted from the DG Report that representatives of OP-20, namely, Mr. Jayantilal
Dedhia, Managing Partner and his son Mr. Fenil Dedhia, Partner, attended several
02.06.2017, 25.07.2017, 19.08.2017, 05.12.2017, 25.12.2017 and 05.04.2018, wherein
Case No. 24 of 2017 73

13.02.2014, 09.09.2016, 26.11.2016, 16.02.2016, 06.01.2017, 30.01.2017, 20.02.2017,
61.3 In his statement recorded before the DG, Mr. Jayantilal Dedhia acknowledged as under:
“… Since 2007 I used to attend Gujarat Paper Mills Association (GPMA)

(Vapi) meetings when they conducted the meetings in Mumbai, but I was not a
formal member of GPMA. … Majority of GPMA/FIPR meetings were attended
by me and in some of the meetings one of the other partners, Shri Fenil Dedhia
also attended along with me. I used to receive the information regarding
GPMA/FIPR meetings over phone by office staff of the above associations. …
In GPMA/FIPR meetings main issues being discussed are cost of waste paper,
being our major raw material (indigenous/imported), cost of coal, chemical,
starch, electricity, manpower etc., not getting reasonable price to Kraft Paper,
delay/non receipt of payment from corrugators, pollution problems, shutting
down of Kraft Paper mills etc. After GPMA/FIPR meetings, I used to receive
circulars regarding price hike of Kraft Paper and shutting down of mills from
GPMA/FIPR. …
After GPMA/FIPR meetings, either I would get the information regarding price
hike or closure of Kraft Paper Mill by myself or receive the circulars from the
association or get the information from the association over telephone or
messages through WhatsApp group namely “Paper Mills – GJ/MS/C.G.K.”. In
any case I implemented the decisions of price hike or shut-down of mills as per
the directions of GPMA/FIPR in my firm. …
My company has implemented the collective shutting down of Kraft Paper mills
as directed by GPMA during the following periods:
1. 27.01.2017 to 31.01.2017 (5 days)
2. 11.02.2017 to 16.02.2017 (6 days)
3. 11.03.2017 to 15.03.2017 (5 days)
I was the part of the cartel (collective increase of price of Kraft Paper and
collective shutting down of Kraft Paper mills) since December 2016 to March
2018.
Earlier I was not aware of the above. Now I admit that by adopting such
practices as discussed by me in my statement my firm and myself as an
individual have committed violation of the provisions of Competition Law for
which my firm and myself can be penalized.”
61.4 Mr. Dedhia also provided copies of price hike circulars issued by OP-20 via e-mails
dated 20.01.2017 (five circulars), 07.02.2017, 20.02.2017, 02.03.2017, 04.03.2017,
05.03.2017 and 06.03.2017, and copies of log book entries and attendance register of
Case No. 24 of 2017 74

OP-20 for the months of January, February and March 2017 showing shut-down of OP-
20’s paper mill to the DG.
61.5 Mr. Dedhia was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place. Also, as per the MoM dated 15.07.2017,
Mr. Jayanti Dedhia was appointed as one of the first Joint Treasurers of FIPR. He is
also the member of the Managing Committee of FIPR.
matter. In its suggestions/objections to the DG Report, though OP-20 stated that it fully
agrees with the conclusions of contravention of the provisions of the Act by it, as drawn
by the DG, it submitted that the DG has erroneously held OP-20 to be a part of the
cartel arrangement since 2007. OP-20 also made certain other submissions which were
62. OP–21 (Sunshine Kraft)
Case No. 24 of 2017 75

62.1 It is noted from the DG Report that the representative of OP-21, namely, Mr. Arun B.
Chaudhari, Partner, attended the meeting of GPMA dated 15.02.2017, wherein
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
62.3 In his statement recorded before the DG, Mr. Arun B. Chaudhari acknowledged as
under:
“I am a member of Federation of Indian Paper Recyclers (FIPR), Vapi since

July 2017. I also used to attend the meetings of Gujarat Paper Mills
Association (GPMA), Vapi, since 2008, but I was not a member of GPMA. … I
used to receive communication regarding GPMA meetings through WhatsApp
or E-mail or telephone. The last meeting of GPMA was attended by me on
February 2017.
The main issues discussed in GPMA/FIPR were regarding higher rate of waste
paper, other raw materials, electricity, fire wood, marketing of Kraft paper,
price increase of Kraft paper, shutting down of mills etc.
Most of the circulars of GPMA regarding price rise and shutting down of mills
were received by my firm through email. Some of the circulars were also
received by my firm through courier. …
After receiving the circulars regarding price hike from GPMA, I along with the
other partner, Sh. Amol Arun Patil, used to discuss the matter with
dealers/corrugators and finally decided on the quantum of price to be
increased and date from which it is to be implemented. Then I used to send
WhatsApp message or direct SMS or through telephonic communication to the
dealers/corrugators, but I do not have any records of the above price hike
communication in any format. I was a member of the WhatsApp group namely
“Paper Mills – GJ/MS/C.G.K” operated by GPMA/FIPR officials and I used to
receive messages from the association regarding meetings/price hike/shutting
down of Kraft paper mills etc. …
I have also implemented the decision taken by GPMA/FIPR regarding
collective shutting down of Kraft paper mills during the following periods and
shut-down my manufacturing plant:
1. 02.05.2017 to 09.05.2017 (8 days)
2. 01.06.2017 to 07.06.2017 (7 days)
Case No. 24 of 2017 76

3. 27.06.2017 to 04.07.2017 (8 days)
I have also shut-down my Kraft paper mill during the following periods, but I
cannot confirm whether the below mentioned closures were on account of the
directions of GPMA:
1. 21.05.2016 and 22.05.2016 (2 days)
2. 08.07.2016 to 10.07.2016 (3 days)
3. 06.08.2016 and 07.08.2016 (2 days)
4. 27.08.2016 and 28.08.2016 (2 days)
I admit that I was a part of the cartel (collective implementation of price hike
of Kraft paper by Kraft paper mills and collective closure of Kraft paper mill)
from 2008 to November 2017.
I was not aware of the above earlier but now I came to know. I admit that by
adopting such practices as discussed by me in my above statement my firm and
Competition Law for which my firm and myself can be penalized.”
62.4 Mr. Chaudhari was also a member of WhatsApp groups “Paper Mills – GJ/MS/CGK”
and “NEWS Paper Mills”, wherein discussions regarding price of Kraft paper, price of
raw material waste paper and collective shut-down of mills took place.
Commission finds that OP-21 was part of the discussions held at GPMA/FIPR
regarding price increase of Kraft paper and collective shut-down of paper mills, and it
also followed the directions issued by GPMA/FIPR, fully or partially, in this regard.
Such conduct of OP-21 amounts to indirectly determining the sale prices of Kraft paper
in contravention of the provisions of Section 3(3)(a) of the Act and limiting and
Case No. 24 of 2017 77

63. OP–22 (Banganga Paper Mills)
63.1 It is noted from the DG Report that representatives of OP-22, namely, Mr. Chetan K.
Dhatrak, Partner, his father Mr. K. P. Dhatrak, and Mr. D. G. Mankar, attended several
02.06.2017, 25.07.2017 and 05.12.2017 wherein discussions regarding fixing of prices,
63.2 OP-22 was also named by GPMA as one of its members. In his statement recorded
before the DG, Mr. Chetan Dhatrak acknowledged as under:
“… I have also attended meetings of GPMA since February 2017 but I was not
a formal member of Gujarat Paper Mills Association (GPMA). Most of
GPMA/FIPR meetings were attended by me and some of the above meetings
were attended by my father. …
In GPMA/FIPR meetings which were attended by me, the main issues which
were discussed are higher rate and shortage of raw materials such as waste
paper (local/imported), coal, collective shutting down of Kraft paper mills,
maintaining the demand of Kraft paper, price of Kraft paper etc. I got the
information regarding GPMA meetings from the other mill owners around
Nashik. I had attended the first meeting of GPMA on 15.02.2017 … I have not
received any circulars from GPMA/FIPR regarding price hike of Kraft
paper/shutting down of Kraft paper mills. However, I used to note price
increase of Kraft paper and shut-down schedule of mills in every meeting
attended by me …
As per the directions from GPMA/FIPR regarding the price hike of the Kraft
paper, I have also implemented the decision, but not immediately as per
association order. If I implemented the price hike decision immediately, I
would have lost my regular customers.
I implemented the decision of collective price rise of Kraft paper from
February to May 2017. I used to inform my dealers/corrugators regarding the
price hike of Kraft paper over telephonic communications and WhatsApp
messages only. I do not have any record of the said communications. … As per
the directions of GPMA, my firm also implemented the collective closure of
Case No. 24 of 2017 78

Kraft paper mills from February to June 2017 as per the details furnished
below:
11.02.2017 to 14.02.2017 (4 days)
12.03.2017 to 17.03.2017 (6 days)
05.04.2017 to 10.04.2017 (6 days)
02.05.2017 to 08.05.2017 (7 days)
01.06.2017 to 06.06.2017 (6 days)
I was not aware of the above earlier, but now I came to know. I admit that by
adopting such practices as discussed by me in my above statement my firm and
Competition Law for which my firm and myself can be penalized.
with my mobile no. …. In the said group I used to receive communications
regarding the meetings of paper mills association from Maharashtra and
Gujarat. In the said group communications regarding price increase/decrease
of Kraft paper was also made. Frequently I used to send messages in the said
group. I am not aware that the said group is solely operated by the officials of
GPMA and created by Nimish Bhai. After receiving the communication
regarding the meeting of GPMA/FIPR through WhatsApp or telephone, I
attended the above meetings on 15.02.2017, 15.03.2017, 07.04.2017,
05.05.2017 and 02.06.2017. …”
63.3 Mr. Dhatrak also provided to the DG, copies of invoices issued by OP-22 to some
dealers showing price hike adopted by OP-22 as per the directions of GPMA.
63.4 Mr. Dhatrak was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
DG. OP-22 submitted that it had started its operations only in 2016 and had joined
GPMA meetings to gather insights regarding the market. Once it came to know about
the anti-competitive activities of GPMA, it discontinued its association with it. OP-22
also made certain other submissions which were largely similar to those raised by
GPMA and OP-2.
Case No. 24 of 2017 79

64. OP–23 (Swastik Pulp and Papers Private Limited)
64.1 It is noted from the DG Report that representatives of OP-23, namely, Mr. Karsanbhai
Somjibhai Patel alias Babubhai Patel, Director, Mr. Shankar Patel, Mr. Ritesh Patel and
Mr. Vivek Patel, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
07.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 05.12.2017, 19.08.2017 and
05.04.2018 wherein discussions regarding fixing of prices, shutting down of mills, etc.,
were held.
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
64.3 In his statement recorded before the DG, Mr. Babubhai Patel acknowledged as under:
“I am a member of Federation of Indian Paper Recyclers (FIPR) since July

2017. I have attended the meetings of Gujarat Paper Mills Association
(GPMA) since 2006, but not on a regular basis. I was not a member of GPMA.
…
Case No. 24 of 2017 80

In some of the meetings attendees including me used to discuss about the price
of Kraft paper, cost of raw materials, collective shutting down of mills etc.
Representing SPPL I am the sole person who had attended GPMA/FIPR
meetings. In those GPMA meetings which was not attended by me, the
decisions regarding price hike of Kraft paper, collective shutting down of mills
were conveyed to me over telephone by …
I have implemented the decisions of GPMA/FIPR regarding collective price
rise of Kraft paper since 2006 and collective shutting down of Kraft paper
mills since January 2017. I have not received any circulars from GPMA/FIPR
regarding price rise and collective shutting down of mills till date. During
2006 to 2017, I attended almost 15 to 17 meetings of GPMA. During the said
period, attendees of GPMA meetings discussed about the price of Kraft paper.
My company implemented the price increase decision of GPMA during 2006 to
2017, 4 to 5 times. I have issued circulars 4 to 5 times to various dealers
regarding price rise since 2006 to 2017, as per the directions of GPMA, …
My company also implemented collective shut-down of its manufacturing plant
as per the directions of GPMA during January 2017 to July 2017.
1. 27.01.2017 to 31.01.2017 (5 days)
2. 12.02.2017 to 16.02.2017 (5 days)
3. 11.03.2017 to 15.03.2017 (5 days)
4. 05.04.2017 to 13.04.2017 (9 days)
5. 05.05.2017 to 10.05.2017 (6 days)
6. 01.06.2017 to 07.06.2017 (7 days)
7. 27.06.2017 to 03.07.2017 (7 days)
association and exchange messages in this group regarding meetings/price
… However, I confirm that as per the directions of GPMA in the month of
January 2017, I implemented the price hike of Kraft paper in my company @
Rs.2/- per MT instead of the suggested price hike of Rs.3/- to Rs.4/- per kg of
Kraft paper.
… However, I can confirm that my company has implemented the decision of
GPMA to increase the price of Kraft paper @ Rs.1000/- per MT after
reviewing the scenario of my company at that time.
… I admit that by adopting such practices as discussed by me in my above
statement my firm and myself as an individual have committed the violation of
the provisions of Competition Law for which my firm and myself can be
penalized.”
Case No. 24 of 2017 81

64.4 Mr. Patel also provided to the DG, copies of price hike circulars of OP-23 dated
19.01.2017, 16.02.2017, 05.03.2017 and 16.03.2017.
64.5 Mr. Patel was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place. In fact, Mr. Omprakash Rathi of OP-3
even stated that he, along with Mr. Babubhai Patel of OP-23 and one other person, were
the admins of the Maharashtra WhatsApp group.
DG in the Investigation Report. However, it made certain other submissions which
were largely similar to those raised by GPMA and OP-2.
65. OP–24 (Best Paper Mills Private Limited)
65.1 It is noted from the DG Report that representatives of OP-24, namely, Mr. Ketan Shah,
Joint Managing Director and Mr. M. Rathod attended several meetings of GPMA dated
15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 02.06.2017, 25.07.2017,
Case No. 24 of 2017 82

fixing of prices, shutting down of mills, etc., were held. In fact, the DG has noted that
Mr. Ketan Shah was appointed as the first Treasurer of FIPR in the meeting dated
15.03.2017.
recipients of the e-mails dated 19.09.2016, 21.11.2016, 06.01.2017, 20.01.2017 and
30.01.2017 sent by GPMA to its members.
65.3 In his statement recorded before the DG, Mr. Ketan Shah acknowledged as under:
“I am a member of Gujarat Paper Mills Association (GPMA), Vapi since 2005

and Federation of Indian Paper Recyclers (FIPR), Vapi since July 2017 and I
used to attend the meetings of GPMA and FIPR representing BPML. I have
attended most of the meetings of GPMA/FIPR.
It was collectively decided to increase the price of Kraft paper by GPMA
during January 2017. On certain occasions, I have also implemented the
decision of GPMA to increase the price of Kraft paper in my company, …
After the decision of GPMA regarding price hike of Kraft paper, I used to
intimate my customers about the said decision in my company (BPML) through
email communications or WhatsApp messages. …
association and exchange messages in this group regarding meetings/price
My company also implemented the shutting down schedule of its manufacturing
plant (BPML) of Kraft paper during the following periods against the
directions of GPMA:
S. No. Shut-down schedule as directed by GPMA Shut-down implemented by BPML
1. 27th to 31st January 2017 (5 days) 27th to 31st January 2017 (5 days)
2. 11th to 15th February 2017 (5 days) 11th to 15th February 2017 (5 days)
3. 11th to 15th March 2017 (5 days) 11th to 16th March 2017 (5 ¼ days)
4. 5th to 9th April 2017 (5 days) 5th to 11th April 2017 (7 days)
(i) 2nd to 7th May 2017 (6 days)- Unit-1
5. 2nd to 8th May 2017 (7 days)
(ii) 2nd to 8th May 2017 (7 days)- Unit- 2
6. 1st to 6th June 2017 (6 days) 1st to 5th June 2017 (5 days)
7. 27th June to 3rd July 2017 (7 days) No closure
Case No. 24 of 2017 83

From the above shutting down schedule, it can be seen that I have also
implemented the directions of GPMA almost in the same manner during
January 2017 to June 2017.
I admit that the above price circulars dated 15.02.2017 and 04.03.2017 were
issued by my company to my customers through courier and the price hike
implemented by my company on 20.01.2017, 15.02.2017 and 04.03.2017 as per
the directions of GPMA.
… I admit that by adopting such practices as discussed by me in my statement
my company and myself as an individual have committed violation of the
provisions of Competition Law for which my company and myself can be
penalised.”
65.4 Mr. Ketan Shah also provided to the DG, copies of price increase circulars of OP-24
dated 15.02.2017 and 04.03.2017, which shows compliance of GPMA price increase
circulars dated 20.01.2017, 15.02.2017 and 04.03.2017 by OP-24.
65.5 Mr. Shah was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
Case No. 24 of 2017 84

present order, where imposition of penalty is dealt with
66. OP–25 (Saiyed Paper Mills Limited)
66.1 It is noted from the DG Report that the representative of OP-25, namely, Mr. Mehboob
Saiyed, Director attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
07.04.2017, 05.05.2017, 25.07.2017, 19.08.2017, 22.11.2017, 25.12.2017 and
05.04.2018 wherein discussions regarding fixing of prices, shutting down of mills, etc.,
were held.
members.
66.3 In his statement recorded before the DG, Mr. Mehboob Saiyed acknowledged as under:
“My company (SPML) is a member of Federation of Indian Paper Recyclers

(FIPR), Vapi. My company (SPML) was a member of Gujarat Paper Mills
Association (GPMA), Vapi. I used to attend the meetings of GPMA/FIPR from
the 2nd half of 2016. … My company was involved in the alleged cartel from
mid-2013 to April 2018. …
During GPMA/FIPR meetings, which were personally attended by me, the
main points being discussed are recovery of debt from the dealers of Kraft
paper, technical issues, price of Kraft paper, collective shutting down of mills,
increasing cost of waste paper (local/imported), coal, chemicals, electricity,
manpower, fluctuating rate of Dollar etc. After GPMA/FIPR meetings,
association officials used to send circulars regarding price hike/shutting down
of mills through email communications and WhatsApp messages.
After the decision taken by GPMA during January 2017 regarding the price
hike, on certain occasions, I have also implemented the decision of GPMA to
increase the price of Kraft paper in my company, but not immediately and not
in the same quantum as directed by the association (GPMA), but implemented
the price hike decision according to the customer. In the case of regular
customers, I have increased the price of the Kraft paper only after completion
of supply of the current order.
Case No. 24 of 2017 85

… My company also shut-down its manufacturing plant as per GPMA
directions during the following periods:
S. No. Shut-down schedule as directed by GPMA Shut-down implemented by SPML
1. 27th to 31st January 2017 (5 days) 27th to 30st January 2017 (4 days)
2. 11th to 15th February 2017 (5 days) 11th to 15th February 2017 (5 days)
3. 11th to 15th March 2017 (5 days) 11th to 15th March 2017 (5 days)
4. 5th to 9th April 2017 (5 days) 5th to 11th April 2017 (7 days)
5. 2nd to 8th May 2017 (7 days) 2nd to 8th May 2017 (7 days)
6. 1st to 6th June 2017 (6 days) 1st to 6th June 2017 (6 days)
I was the member of WhatsApp group namely “Paper Mills – GJ/MS/C.G.K”
etc. …
I was not aware about the above Act. I came to know only after getting notice
by GPMA from your office. I admit that by adopting such practices as
discussed by me in my statement my company and myself as an individual have
committed violation of the provisions of Competition Law for which my
company and myself can be penalized.”
66.4 Mr. Mehboob Saiyed also provided copies of several price increase circulars issued by
OP-25 to its customers to the DG.
66.5 Mr. Saiyed was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place and he also submitted screenshots from the
same regarding price hike communications sent to the dealers.
by GPMA and OP-2.
Case No. 24 of 2017 86

similar to those argued by GPMA were also submitted by OP-25.
67. OP–26 (Shree Gajanan Paper and Boards Private Limited)
67.1 It is noted from the DG Report that the Managing Director of OP-26, namely, Mr.
Sunil Agarwal, was the Secretary of GPMA from 2011 to 2015 and President from
2015 onwards, in which capacities he signed various circulars of GPMA including
those dated 29.08.2013, 09.09.2016 and 25.11.2016, whereby decisions to raise prices
of different grades of Kraft papers were communicated to the other paper mills.
67.2 Mr. Agarwal also chaired several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 19.08.2017,
13.02.2014, 16.02.2016, 09.09.2016, 19.09.2016, 21.11.2016, 26.11.2016, 06.01.2017,
20.01.2017, 30.01.2017, 20.02.2017, 10-11.03.2017 and 18.03.2017 sent by GPMA to
its members.
67.4 In his statement recorded before the DG, Mr. Sunil Agarwal acknowledged as under:
“Yes, my company is a member of GPMA since 2002 (appx.) and FIPR since
July 2017. I used to attend almost all the meetings of GPMA/FIPR. …
… In GPMA meetings after taking decision regarding price hike, GPMA used
to issue circulars to all the mill owners belongs to the states of Gujarat,
Maharashtra, Chhattisgarh and Madhya Pradesh. GPMA started issuing price
hike circulars to the mill owners which belongs to the above-mentioned states
Case No. 24 of 2017 87

since 2012. GPMA used to issue price hike circulars to the mill owners through
fax, email or directly inform to the mill owner through telephone. In the above
meetings, it was also decided to impose penalty on those mill owners which
were not complying the decision of GPMA/FIPR. However, GPMA/FIPR was
unable to enforce the above penalty. GPMA has formed a monitoring
committee to check whether the mills were implanting the decision of shutting
down declared by the association. In the above committee, employees of the
Kraft paper mills belong to a particular area used to visit other Kraft paper
mills in another area in order to monitor the shut-down of mills, but some of
the mills were found working. Even though, GPMA has taken decision to
impose penalty on non-complying mills, yet association failed to take any
action for non-compliance.
After GPMA/FIPR meetings, I used to receive the information regarding price
rise of Kraft paper through email communications. With regard to the decision
on shutting down schedule of Kraft paper mills by GPMA/FIPR, I used to
receive the information through email communications in the form of minutes
of the meetings. …
With regard to shutting down of Kraft paper mills as per the directions of
GPMA/FIPR, my company also partially implemented the decision of the
association.
I was the member of WhatsApp group namely “Paper Mills – GJ/MS/C.G.K”
etc.
I was not aware earlier about the above Act. But I came to know only after
GPMA getting notice from your office. I was a part of the above cartel
regarding collective price hike during 2012 to April 2018 and part of the
collective closure of mill during January 2017 to June 2017. I admit that by
adopting such practices as discussed by me in my statement my company and
67.5 Mr. Agarwal also provided hard copy of revised price list of OP-26 after price hike
issued to customers on 16.03.2017 and copies of price hike circulars issued by OP-26
dated 21.11.2016, 15.02.2017, 04.03.2017, 16.03.2017, 25.07.2017, 12.11.2017 and
05.12.2017 to the DG.
67.6 Mr. Prahlad Patel, Trustee of OP-39 and OP-53, in his statement recorded before the
DG, stated that “In GPMA/FIPR meetings price hike decision and collective shutting
Case No. 24 of 2017 88

schedule were decided by the Shri Sunil Aggarwal (Munnabhai), President of
GPMA/FIPR.”
67.7 Mr. Agarwal was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place. Some of the communications exchanged
by him on this WhatsApp group, are as follows:
Case No. 24 of 2017 89

Case No. 24 of 2017 90
DG. OP-26 made certain other submissions which were largely similar to those raised
by GPMA and OP-2.
Case No. 24 of 2017 91

68. OP–27 (Shree Ajit Pulp and Paper Limited)
68.1 It is noted from the DG Report that the representative of OP-27, namely, Mr. Gautam
Shah, Director attended the meeting of GPMA dated 24.04.2017 wherein discussions
regarding fixing of prices, shutting down of mills, etc., were held. Mr. Shah was also
the Treasurer of GPMA till March 2015.
68.2 It is also noted from the DG Report that Mr. Gautam Shah is also a Director at Samrat
Pulp and Paper Pvt. Ltd. in which the other two directors are Mr. Pankaj Mansingka of
OP-18 and Mr. Sundeep Shah of OP-7. Both Mr. Pankaj Mansingka and Mr. Sundeep
Shah have also been found by the DG to be a part of the Kraft paper mills cartel.
19.09.2016, 21.11.2016, 06.01.2017 and 30.01.2017 sent by GPMA to its members.
68.4 In his statement recorded before the DG, Mr. Gautam Shah acknowledged as under:
“My company (SAPPL) is a member of Gujarat Paper Mills Association

(GPMA), Vapi at least since 2011 (appx.) and used to receive circulars from
GPMA since 2011. …
My company has received price hike circulars from GPMA since 23.04.2011 to
25.12.2017. My company used to receive circulars from GPMA through
courier service and may be through email communications as well. …
Case No. 24 of 2017 92

… During 01.03.2013 to 16.02.2016, my company increased the price of Kraft
paper 3 times, during July 2013, November 2013 and January 2015 … My
company also increased price of Kraft paper during 01.02.2017 and
04.03.2017, …
My company used to convey the price hike decision to my customers through
courier service and through telephonic communications. …
GPMA directed the Kraft paper mills which were coming under them to shut-
down their mills during the following periods: -
S. No. Period of Closure Number of days
1. 27.01.2017 to 31.01.2017 5 days
2. 11.02.2017 to 15.02.2017 5 days
3. 11.03.2017 to 15.03.2017 5 days
4. 05.04.2017 to 09.04.2017 5 days
5. 02.05.2017 to 08.05.2017 7 days
6. 01.06.2017 to 06.06.2017 6 days
7. 27.06.2017 to 03.07.2017 7 days
My company followed the directions of GPMA to close its mills partially on all
first 6 instances and in the 7th instance my company was partially shut for 4
days instead 7 days as directed by GPMA. …
I was a member of WhatsApp group namely “Paper Mills – GJ/MS/C.G.K”
and “NEWS PAPER MILLS” which were operated by GPMA/FIPR officials
and I was not an active member in both the above groups. …
I was not aware earlier about the above Act. But I came to know only after
GPMA getting notice from your office. My company was forced to partially
participate in the collective closure of mill during January 2017 to June 2017.
I admit that collective shut-down is in violation of the provisions of
68.5 Mr. Gautam Shah was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”
matter. However, in its suggestions/objections to the DG Report, OP-27 submitted that
it has not been involved in any contravention of the provisions of Section 3(3) of the
Act and ought to be exonerated in the present matter. OP-27 submitted that firstly, Mr.
Gautam Shah had attended only a single meeting of GPMA dated 24.04.2017 and not
others; secondly, in the WhatsApp group of which he was a part, to the best of his
Case No. 24 of 2017 93

knowledge, he did not share even a single message; thirdly, OP-27 never increased its
prices as per the directives of GPMA and rather while increasing its prices, it always
consulted its customers; fourthly, OP-27 only partially closed its mills on the days as
per the advisories issued by GPMA and also maintained continuous supply despite such
closure and other closures maintained by OP-27 were due to business exigencies; and
lastly, common directorship with other members of cartel did not affect OP-27’s
decision making. It also made certain other submissions which were largely similar to
those raised by GPMA and OP-2.
68.7 With regard to OP-27’s submissions that its Director Mr. Gautam Shah attended only
one meeting of GPMA and not others and in the WhatsApp group of which he was a
part, to the best of his knowledge, he did not share even a single message, the
Commission notes that the very receipt of GPMA price hike circulars and messages
being circulated in the said WhatsApp group by OP-27, gave it knowledge about
competitor prices and strategies and hence, its conduct cannot be said to be independent
or having no likelihood of causing AAEC in the market. Similarly, with regard to
submission of OP-27 that it never increased its prices as per the directives of GPMA
and also only partially closed its mills as per the advisories issued by GPMA, the
Commission notes that the provisions of Section 3(1) of the Act not only proscribe
agreements which cause an AAEC, but also forbid agreements which are likely to cause
an AAEC in the market. Nonetheless, as stated above, OP-27 is also a lesser penalty
applicant in the present matter.
Commission finds that OP-27 was part of the discussions held at GPMA/FIPR
regarding price increase of Kraft paper and collective shut-down of paper mills, and it
also followed the directions issued by GPMA/FIPR, fully or partially, in this regard.
Such conduct of OP-27 amounts to indirectly determining the sale prices of Kraft paper
in contravention of the provisions of Section 3(3)(a) of the Act and limiting and
Case No. 24 of 2017 94

69. OP–28 (R. A. Shaikh Paper Mills Private Limited)
69.1 It is noted from the DG Report that the representative of OP-28, namely, Mr. Iqbal
Shaikh, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 05.05.2017, 25.07.2017, 19.08.2017, 22.11.2017, 05.12.2017
and 05.04.2018, wherein discussions regarding fixing of prices, shutting down of mills,
etc., were held.
69.3 In his statement recorded before the DG, Mr. Iqbal Shaikh acknowledged as under:
“My company is a member of Gujarat Paper Mills Association (GPMA), Vapi

since 2007 (appx.) and Federation of Indian Paper Recyclers (FIPR), Vapi
since July 2017. Representing my company, I have personally attended most of
the meetings of GPMA since January 2016 and FIPR since July 2017 and
attended the last meeting of FIPR during April 2018. …
During GPMA/FIPR meetings attendees used to discuss about general issues
of Kraft paper industry such as raw material issues including waste paper
(local/imported), coal, chemicals, pollution related matters, low cost of Kraft
paper, collective price rise of Kraft paper, debt recovery from
dealers/corrugators, collective closure of mills etc. …
After GPMA meetings, I used to receive the price hike circulars from GPMA
through email communications. With regard to the decision on shutting down
schedule of Kraft paper mills by GPMA, I used to receive the information
through email communications in the form of minutes of the meetings. …
After receiving the price hike circulars and shutting down schedules from
GPMA I used to communicate the decisions to my dealers/corrugators through
email communications. … My company implemented the decision of GPMA
since 2011, but the circulars issued by my company prior to January 2017 are
not readily available with me. …
Case No. 24 of 2017 95

I am submitting the hard copy of shut-down schedule implemented by my
company as per the directions of GPMA (Exhibit – 4).
I am also submitting hard copy of the table showing the quantity of Kraft paper
dispatched by my company during the shut-down period as directed by GPMA
(Exhibit – 5).
I am submitting hard copies of invoices issued by my company during the time
of closure on 27.01.2017, 11.02.2017, 11.03.2017 and 05.04.2017 (Exhibit – 6
colly). …
I was a member of WhatsApp groups namely “Paper Mills – GJ/MS/C.G.K”
and “NEWS PAPER MILLS” which were operated by GPMA/FIPR officials.
…
I confirm that my company received the said mail sent by GPMA on
06.01.2017. My company has implemented the said circular of GPMA and
accordingly issued price hike circular on 20.01.2017 to its dealers/corrugators
showing a price hike of Rs.1.5 to Rs.2.0 against the direction of GPMA to
increase the price by Rs.3 to Rs.4 (circular dated 20.01.2017 is already
provided in Exhibit-3).
Earlier I was not aware about the above Act. But I came to know only after
GPMA getting notice from your office. I was a part of the above cartel
regarding collective price hike during 2011 to August 2017 and part of the
collective closure of mill during January 2017 to August 2017. I admit that by
69.4 Mr. Iqbal Shaikh also provided copies of several price increase circulars issued by OP-
28 to its customers from January to March 2017, copy of shut-down schedule
implemented by OP-28 as per the directions of GPMA, copy of a table showing
quantity of Kraft paper dispatched by OP-28 during shut-down period as directed by
GPMA and copies of invoices issued by OP-28 during the time of closure on
27.01.2017, 11.02.2017, 11.03.2017 and 05.04.2017 to the DG.
69.5 Mr. Shaikh was also a member of WhatsApp groups “Paper Mills – GJ/MS/CGK” and
Case No. 24 of 2017 96

by GPMA and OP-2.
that OP-28 was part of the discussions held at GPMA/FIPR regarding increase in the
prices of Kraft paper and collective shut-down of paper mills, and it also followed the
directions issued by GPMA/FIPR, fully or partially, in this regard. Such conduct of OP-
28 amounts to indirectly determining the sale prices of Kraft paper in contravention of
the provisions of Section 3(3)(a) of the Act and limiting and controlling the production,
70. OP–29 (Shweta Paper Industries Private Limited)
70.1 It is noted from the DG Report that the representative of OP-29, namely, Mr. Nilkanth
Awghate, Director, attended meetings of GPMA dated 15.02.2017 and 05.05.2017,
70.2 Though OP-29 denies this fact, it was also named by GPMA as one of its members. In
his statements recorded before the DG, Mr. Banwarilal Kabra, Director of OP-29,
“Neither me nor my company is a member of any Kraft paper manufacturers

association. However, me and one of the other directors Sh. Nilkanth Awghate
have attended few meetings of Gujarat, Maharashtra and Chhattisgarh paper
mills under the banner of Gujarat Paper Mills Association (Vapi) (GPMA).
There is no formal association of paper mill in Maharashtra. However, the
paper mills including my company had been called to attend certain meetings
of GPMA. …
My company (either me or Sh. Nilkanth Awghate) started attending the meeting
of GPMA held at various locations viz, Vapi, Mumbai, Nagpur etc. since
Case No. 24 of 2017 97

October/November 2015. … On their request, either me or Sh. Nilkant
Awghate used to attend these meetings. However, my company has not
attended all the meeting of GPMA. … During these meetings, mill owners used
to discuss the problems being faced by them such as shortage of supply orders
of Kraft paper, non-receipt of reasonable price of Kraft paper, collective price
hike of Kraft paper, collective shutting down of mills etc. My company used to
increase the price of Kraft paper and follow the shut-down schedule as decided
in GPMA meetings.
I personally attended the meetings of GPMA held during October/November
2015 at Vidarbha Cricket Association Club, Nagpur, held on 07.10.2016 at
Nagpur, and a meeting held on 30th June 2017 at Nagpur. I am attaching the
attendance sheet of GPMA meeting held at Nagpur on 07.10.2016 (Exhibit –
2). In this meeting, discussion was held regarding collective price hike of Kraft
paper and collective shutting down of mills. After the above meeting, my
company implemented the decision of collective price hike and planned
shutting down of my mill as per the directions of GPMA. My company
intimated the price hike decisions to my dealers/corrugators through
telephonic communication/email messages. But I do not have any copy of the
email messages sent to my dealers/corrugators. Regarding the implementation
of the shutting down schedule, my company conveyed the decision to my
dealers/corrugators through telephonic communications. …
In order to show that my company has implemented the decision of GPMA
regarding price hike of Kraft paper, I am attaching herewith a copy of invoices
issued by my company as details below …
My company has also implemented the decision of collective shutting down of
Kraft paper mill since April 2016 to August 2017 as per the directions of
GPMA, but not completely during June 2017 to August 2017 as per the details
given below:
S. No. Period of shut-down of mill No. of days
1. 02.04.2016 1
2. 01.05.2016 to 03.05.2016 3
3. 30.10.2016 to 06.11.2016 8
4. 27.01.2017 to 31.01.2017 5
5. 11.02.2017 to 15.02.2017 5
6. 11.03.2017 to 15.03.2017 5
7. 05.04.2017 to 09.04.2017 5
8. 02.05.2017 to 08.05.2017 7
9. 02.06.2017 to 03.06.2017 2*
10. 05.06.2017 to 06.06.2017 2*
11. 29.06.2017 to 01.07.2017 3
Case No. 24 of 2017 98

12. 02.07.2017 to 04.07.2017 3*
13. 02.08.2017 to 04.08.2017 3*
*Partially implemented the shutting down schedule as per GPMA directions
In order to ensure that all the Kraft paper mills of Gujarat/Maharashtra
comply with the directions of collective shut-down as directed by GPMA, a
committee has been constituted to ensure that mill owners strictly follow their
directions. As per the above GPMA used to send monitoring team consisting of
2-3 persons from a particular region and they will inspect Kraft paper mills of
other area to check whether the mills are complying with the directions of
GPMA. Accordingly, two persons namely, Sh. Bhimsen Jina, Raipur and Sh.
Brijesh Upadhyay, Vapi have visited my company between 2nd to 8th May
2017 in order to monitor the shutting down schedule. Further 2-3 persons
visited my company between 2nd to 6th June 2017 in order to monitor the
shutting down schedule, but I do not recollect the names of those persons. The
Kraft paper mills who were the subject of the monitoring team had to share the
monitoring teams expenses, …
Sh. Nilkanth Awghate one of the other directors of my company has attended
the meeting of Hyderabad Kraft Paper Mills Association (HKPMA) held at
Hyderabad on 07.02.2017 …
I was a member of the WhatsApp groups namely “Maharashtra paper mills”
from 21.01.2017 and “NEWS PAPER MILLS” which were operated by Sh.
Omprakash Rathi and GPMA/FIPR officials respectively. …”
“I have seen the said backup of the said WhatsApp Group in which myself and
Sh. Nilkant Awghate, directors of Shweta Paper Industries Pvt. Ltd. are
members since first half of 2016. In the said WhatsApp Group members used to
exchange information regarding GPMA/Maharashtra Paper Mill Associations
meetings, Kraft paper/waste paper rates, collective shutting down of Kraft
paper mills, market scenario of Kraft paper mills etc.
The email serial no. (i) was sent to another mill owner from Chhattisgarh as a
specimen circular in connection with price hike of Kraft paper. The said email
was sent to the mill owner as per his own request. The above price hike format
was made as per the direction of GPMA and same was implemented by my
company too.
The emails serial no. (ii) to (xi) were sent to my Kraft paper dealers in
connection with increase in the price of Kraft paper w.e.f. 22.11.2017. … The
last price hike of Kraft paper implemented by my company as per the
directions of GPMA was during the month of April 2017. However, the
decision of GPMA to shut-down the mills was partially implemented by my
company till August 2017.
Case No. 24 of 2017 99

My company used to intimate the price hike decision implemented by my
company as per the directions of GPMA through WhatsApp messages. The
price hike decisions were communicated to my customers through email
messages or through telephonic conversations.
Initially, myself and my company were not aware of the above. Later, in one of
the meetings of GPMA I became aware of the above Act. Myself and other
director of the company attended meeting of GPMA till 19.07.2017, later
myself and other director of the company discontinued in attending the meeting
of GPMA/FIPR.”
70.3 Mr. Kabra also provided copies of some invoices of OP-29 from January to April 2017
showing implementation of the decisions of GPMA regarding price increase, e-mails
and documents related to expenses incurred by OP-29 for monitoring the team of
GPMA, screenshots of some messages transacted in the WhatsApp group of
Maharashtra Paper Mills regarding meetings of GPMA and the case filed at the
Competition Commission of India, screenshots of some messages transacted in the
WhatsApp group “Paper Mills – GJ/MS/C.G.K” and agenda of the HKPMA meeting
held on 07.02.2017 to the DG. Ten e-mails whereby price increases were conveyed by
OP-29 to its dealers were also recovered from Mr. Kabra’s e-mail account.
70.4 Mr. Kabra was also a member of WhatsApp groups of Maharashtra Paper Mills, “Paper
Mills – GJ/MS/CGK” and “NEWS Paper Mills”, wherein discussions regarding price
of Kraft paper, price of raw material waste paper and collective shut-down of mills took
place.
Case No. 24 of 2017 100

71. OP–30 (Sukraft Paper Mills Private Limited)
71.1 It is noted from the DG Report that the representative of OP-30, namely, Mr. Arunbhai
Agarwal attended the meeting of GPMA dated 15.02.2017 wherein discussions
regarding fixing of prices, shutting down of mills, etc., were held. Further, it is also
noted that Mr. Karsanbhai Somjibhai Patel alias Babubhai Patel, Director of OP-23,
also attended several meetings of GPMA on behalf of OP-23 as well as OP-30.
71.2 It is also noted from the DG Report that OP-30 is part of Sukraft group which
comprises of 3 other companies namely Sukraft Paper Pvt. Ltd., Nashik (OP-14),
Swastik Pulp & Paper Mills Pvt. Ltd., Nashik (OP-23) and Sunshine Pap Tech Pvt. Ltd.
(OP-19).
71.3 OP-30 was also named by GPMA as one of its members, though OP-30 denies the
same. Further, it was one of the recipients of the e-mails dated 30.01.2013, 20.03.2013,
19.06.2013, 29.08.2013, 13.02.2014, 16.02.2016, 26.11.2016, 06.01.2017, 30.01.2017,
20.02.2017 and 10-11.03.2017 sent by GPMA to its members.
71.4 In his statement recorded before the DG, Mr. Sunil Patel, Director of OP-30,
“I am not a member of any association of Kraft paper manufacturers. Sh.

Karshanbhai Patel, used to represent Sukraft group companies including
SPMPL since January 2015. However, Sh. Arun Agarwal, my office staff has
attended one of the meetings of Gujarat Paper Mills Association (GPMA), Vapi
held on 15.02.2017 at Hotel J W Marriott, Mumbai. …
… After the above meeting, Sh. Arun Agarwal informed me that GPMA decided
to impose penalty on non-compliance of the decisions of GPMA by Kraft paper
Case No. 24 of 2017 101

mill, decided to shut-down the Kraft paper mills from 11th to 15th March 2017
and increase the price of Kraft paper by Rs.2 to Rs.3. This meeting was
reportedly attended by 71 Kraft paper mill owners from the states of Gujarat
and Maharashtra. …
through email communications/courier services. With regard to the decision on
shutting down schedule of Kraft paper mills by GPMA, I used to receive the
information through email communications in the form of minutes of the
meetings. And on certain occasions, my company received the information
regarding shutting down of mills through Sh. Karshanbhai Patel alias
Babubhai Patel, Director, Swastik Pulp & Papers Pvt. Ltd., Nashik. …
telephonic conversations/email communications. … My company implemented
the decisions of GPMA regarding collective price hike of Kraft paper since
June 2015 to April 2018.
which was operated by GPMA/FIPR officials. …
I confirm that my company received the said email sent by GPMA to my
company on 06.01.2017. My company has also implemented the said circular
of GPMA and increased the price of Kraft paper, but not as per the quantum
suggested by GPMA. …
I was not aware about the above Act earlier. But I came to know only after Sh.
Omprakash Rathi of Maharashtra Paper Mills Association received notice
from your office. I was a part of the above cartel regarding collective price
hike during June 2015 to April 2018. I admit that by adopting such practices as
discussed by me in my statement my company and myself as an individual have
committed violation of the provisions of Competition Law for which my
company and myself can be penalized.”
71.5 Mr. Sunil Patel was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”
wherein discussions regarding price of Kraft paper price of raw material waste paper
DG in the Investigation Report. OP-30 also submitted that though it was not an active
participant in the activities of GPMA, all MoMs, price circulars and information
Case No. 24 of 2017 102

pertaining to GPMA were communicated to it by other companies of the Sukraft Group
and their representatives. It also made certain other submissions which were largely
similar to those raised by GPMA and OP-2.
72. OP–31 (New Bombay Paper Mills Private Limited)
72.1 It is noted from the DG Report that representatives of OP-31, namely, Mr. Kamal
Kedia, Mr. Shivank Kedia and Mr. Naman Agarwal, Directors, attended several
meetings of GPMA dated 15.02.2017, 15.03.2017, 25.07.2017 and 19.08.2017 wherein
72.2 OP-31 was also named by GPMA as one of its members. In his statement recorded
before the DG, Mr. Naman Agarwal acknowledged as under:
“My company has been a member of Federation of Indian Paper Recyclers

(FIPR), Vapi since July 2017. … My company is not a member of Gujarat
Paper Mills Association (GPMA), Vapi, but used to attend the meetings of
GPMA since 19.01.2017. Mill owners from the state of Maharashtra are not
allowed to be a member of GPMA/FIPR. Regarding convening of GPMA/FIPR
meetings, my company used to receive communications such as agenda and
schedule of the meetings through WhatsApp messages/email communication …
Myself or/and the other directors have attended most of the meetings of
Case No. 24 of 2017 103

GPMA/FIPR since 19.01.2017. In GPMA/FIPR meetings, mill owners from the
states of Gujarat and Maharashtra used to attend. I have attended the lone
meeting of FIPR on 19.08.2017. After August 2017 my company discontinued
attending the meetings of FIPR because discussing price hike decision
collectively is against the present law.
The major issues which are being discussed in GPMA/FIPR meetings are
increasing cost of raw materials such as waste paper (local/imported), coal,
chemicals, electricity, availability of skilled manpower, low rate of Kraft
paper, delay/non recovery of debts from the dealers/corrugators, excess supply
of Kraft paper in the market, collective price hike of Kraft paper, collective
closure of Kraft paper mills etc. …
through email communications. With regard to the decision on shutting down
schedule of Kraft paper mills by GPMA, I used to receive the information
through email communications in the form of minutes of the meetings. …
email communications/telephonic conversations. … I am submitting the hard
copies of price hike/shut-down circulars sent by my company to my customers
as per the directions of GPMA from 22.01.2017 to 15.03.2017 (Exhibit – 3
colly) as detailed below. My company implemented the decision of GPMA
since January 2017. …
I am submitting the hard copy of shut-down schedule and logbook records
implemented by my company as per the directions of GPMA in addition to the
reasons related to up-gradation of plant and machinery/expansion of installed
capacity of the plant /regular maintenance of the plant and machinery/erection
of new plant and machinery etc.
which was operated by GPMA/FIPR officials. … My company used to receive
communications from GPMA regarding scheduling of meetings, minutes of the
meetings, price hike circulars and shutting down of mills.
Earlier I was not aware about the above Act. But I came to know only after Sh.
Omprakash Rathi of Maharashtra Paper Mills Association getting notice from
your office. I was a part of the above cartel regarding collective price hike and
collective closure of mill during January 2017 to August 2017. I admit that by
Case No. 24 of 2017 104

72.3 Mr. Naman Agarwal also provided the copies of price hike/shut-down circulars issued
by OP-31 dated 22.01.2017, 15.02.2017, 04.03.2017 and 15.03.2017 and copy of shut-
down schedule and logbook records of OP-31 showing implementation of GPMA’s
collective shut-down directions to the DG.
72.4 Mr. Agarwal was also a member of WhatsApp group “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place. When confronted by the DG with the
following screenshot of a message sent by him in the said WhatsApp group regarding
price hike, Mr. Agarwal confirmed that he was the one who had sent the said message
in the group:
matter. In its suggestions/objections to the DG Report, though OP-31 stated that it fully
agrees with the conclusions of contravention of the provisions of the Act by it, as drawn
by the DG. However, OP-31 mention that increase in prices by it or shut-down of plant
by it were not only because of GPMA decisions, but also due to other factors. OP-31
also made certain other submissions which were largely similar to those raised by
GPMA and OP-2.
Case No. 24 of 2017 105

73. OP–32 (Super Deluxe Paper Mills Private Limited)
73.1 It is noted from the DG Report that representatives of OP-32, namely, Mr. Hiten Shah,
Mr. Kailash Nima and Mr. Kalpesh Vira, Directors, attended several meetings of
GPMA dated 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 05.05.2017,
02.06.2017, 25.07.2017, 19.08.2017, 22.11.2017, 05.12.2017, 25.12.2017 and
were held. Mr. Hiten Shah was also the Treasurer of GPMA from 2015 onwards.
members.
73.3 In his statement recorded before the DG, Mr. Hiten Shah acknowledged as under:
“My company was a member of Gujarat Paper Mills Association (GPMA),

Vapi since 2007 and Federation of Indian Paper Recyclers (FIPR), Vapi since
July 2017. Most of the meetings of GPMA/FIPR were attended by myself and
on certain occasions, where I could not attend the same Sh. Kalpesh N. Vora
used to attend the meetings. … I have attended the last meeting of FIPR during
April 2018.
General issues which were being discussed in the above meetings were raw
material issues including waste paper (local/imported), coal, chemicals,
pollution related matters, low price of Kraft paper, shortage of skilled
Case No. 24 of 2017 106

manpower, delay/non-recovery of payments from dealers/corrugators,
collective price rise of Kraft paper, collective closure of mills etc. …
and “NEWS PAPER MILLS” which were operated by GPMA/FIPR officials.
…
Either I or Sh. Kalpesh N. Vira, one of the directors of the company used to
attend most of the meetings of GPMA, I am very well aware of the price hike
decision and shutting down schedule of GPMA/FIPR and subsequently my
company used to receive the price hike circulars/minutes of the meetings from
GPMA through email communications. …
email communications. … . I am submitting the hard copies of price hike
circulars sent by my company to my customers as per the directions of GPMA
during November 2016 to March 2017 (Exhibit – 5 colly). My company
implemented the decision of GPMA since 2015-16, but the circulars issued by
my company prior to November 2016 are not readily available with me.
I admit that my company has implemented the shutting down schedule as per
GPMA directions from January to July 2017. I used to inform the shut schedule
to my customers through telephonic communications.
Earlier I was not aware about the above Act. But I came to know only after
GPMA getting notice from your office during April 2018. My company was a
part of the above cartel regarding collective price hike during 2015-16 to April
2017, but my company did not get the complete benefit of the price increase
mandated by GPMA during 2015-16. My company was a part of the collective
closure of mill during January 2017 to July 2017. I admit that by adopting
such practices as discussed by me in my statement my company and myself as
an individual have unknowingly committed violation of the provisions of
73.4 Mr. Hiten Shah also provided the copies of some price increase circulars issued by OP-
32 to its customers during November 2016 to March 2017, which show that OP-32
increased the prices of its Kraft paper in tandem with the decisions taken by GPMA to
the DG.
73.5 It is noted from the MoM of GPMA dated 05.05.2017 that Mr. Hiten Shah was
appointed as the Chairman of the Monitoring Committee of GPMA to ensure shut-
down of mills as per the directions.
Case No. 24 of 2017 107

73.6 Mr. Shah was also a member of WhatsApp groups “Paper Mills – GJ/MS/CGK” and
by GPMA and OP-2.
74. OP–33 (S. K. Paper)
74.1 It is noted from the DG Report that representatives of OP-33, namely, Mr. Sarvar Khan,
Partner and Mr. Aslam Khan attended several meetings of GPMA dated 15.02.2017,
15.03.2017, 07.04.2017, 25.07.2017, 05.12.2017, 25.12.2017 and 05.04.2018, wherein
74.3 In his statements recorded before the DG, Mr. Sarvar Khan acknowledged as under:
Case No. 24 of 2017 108

“SKP was a member of Gujarat Paper Mills Association (GPMA) since 2016.
… I have attended almost all the meetings of GPMA on behalf of SKP and I
have attended the last meeting of GPMA held at Daman, during 2017-18. …
In GPMA meetings the main points being discussed are importing of waste
paper, recovery of payments from defaulting dealers/corrugators, maintenance
of fixed price of Kraft paper in a region, shutting down of mills and a
particular date for shutting down was decided in the said meetings.
I am the member of the WhatsApp group namely “Paper Mills –
GJ/MS/C.G.k”. I used to receive message regarding price increase of Kraft
paper, shutting down of mills, intimation regarding GPMA/FIPR meeting,
waste paper price trend etc.”
“I supported the initiative done by Kolhapur based Paper Mill owners
regarding price increase of Rs.2 on Kraft Paper and Shutting down of mills.
My firm also implemented the price hike as directed by GPMA, which is also
due to increase in price of waste paper.”
74.4 From Mr. Khan’s e-mail account, e-mail dated 27.02.2016 sent by one Vikas Traders
was recovered where in the trailing e-mails, price hike circulars of OP-20 and OP-18
were attached. Regarding the same, Mr. Sarvar Khan acknowledged that the same were
sent to him as per his request to know how to prepare a price hike circular. Similarly,
from his e-mail account, e-mail dated 27.02.2016 sent by OP-33 to various other related
entities was recovered regarding which Mr. Sarvar Khan stated that after receiving
samples of price hike circulars from Vikas Traders, OP-33 also issued price hike
circular to its dealers/corrugators.
74.5 Further, though in his first statement recorded before the DG, Mr. Khan maintained that
he did not implement the price hike or shut-down directives issued by GPMA, in his
second statement, when confronted with OP-33’s various sale invoices showing price
hike by OP-33, he acknowledged time and again that his firm also implemented the
price hike as directed by GPMA, which is also due to increase in the price of waste
paper. Further, when Mr. Khan was confronted with a WhatsApp conversation in the
WhatsApp group “Paper Mills – GJ/MS/CGK” of which he was a member and wherein
collective shut-down of mills took place, he acknowledged that he supported the
initiative by Kolhapur based paper mill owners regarding price increase of ₹2 on Kraft
paper and shutting down of paper mills.
Case No. 24 of 2017 109

74.6 The DG has also clearly noted in its report that, as decided in the meeting of GPMA
dated 05.05.2017 to carry out collective shut-down of mills from 01.06.2017 to
06.06.2017 and in the meeting dated 02.06.2017 to carry out collective shut-down of
mills from 27.06.2017 to 03.07.2017, the manufacturing plant of OP-33 was shut from
02.06.2017 to 06.06.2017 and 28.06.2017 to 03.06.2017.
74.7 In its reply to the DG Report, OP-33 stated that “… We have never participated in the
Bandh call given by manufacturers Association and on all given dates our
manufacturing unit was working in full strength. Our manufacturing unit was closed
only if there is shortage of raw material or else supply problem being in remote village.
As our Manufacturing Unit is in infant stage (Just completed seven years) we have
become member of association only to get information/circulars/gazettes from Govt of
India time to time which otherwise would not have available. …”
74.8 However, from the above evidences collected by the DG, clear implementation, even if
partial, of price hike and shut-down directives issued by GPMA by OP-33, is evident.
75. OP–34 (Sezon Paper)
75.1 It is noted from the DG Report that the representative of OP-34, namely, Mr. Amrutlal
Patel, father of one of the Directors of the company, attended several meetings of
GPMA dated 15.02.2017, 15.03.2017, 07.04.2017, 24.04.2017, 05.05.2017,
regarding fixing of prices, shutting down of mills, etc., were held. Mr. Amrutlal was
also the Joint Treasurer of FIPR.
Case No. 24 of 2017 110

recipients of the e-mails dated 10–11.03.2017 and 18.03.2017 sent by GPMA to its
members.
75.3 In his statement recorded (in Hindi) before the DG, Mr. Amrutlal acknowledged that
though he is not a Director in OP-34, but since his son is a Director, he considers the
company as his own and the other Directors of OP-34 are also his relatives.
75.4 Mr. Amrutlal admitted that he started attending GPMA meetings in 2017 when the
production of the plant started. He also admitted that in March 2017, he attended a
meeting of GPMA at Mumbai wherein the rates at which material is to be purchased
and at which the finished paper is to be sold, were discussed. He stated that after that,
he attended most of the meetings of GPMA wherein discussions about when to shut-
down the mills due to shortage of orders took place.
75.5 Mr. Amrutlal claimed that though he was not in agreement with the shut-down
suggested by GPMA, on the advice of the association and on his own, he shut the mill
from 05.04.2017 to 11.11.2017, 04.05.2017 to 09.05.2017, 02.06.2017 to 06.06.2017
and 28.06.2017 to 03.07.2017. He also admitted that, in GPMA meetings, it used to be
decided as to by how much the price of Kraft paper is to be increased. Mr. Amrutlal
stated that though OP-34 also increased the price of Kraft paper from January 2017 to
September 2017, the same was due to increase in price of waste paper and not with the
agreement of GPMA.
75.6 When Mr. Amrutlal was confronted with the MoM dated 15.02.2017 of GPMA wherein
it was decided to increase the price and shut the mill from 11.03.2017 to 15.03.2017, he
admitted that he attended the said meeting but stated that he was not in agreement with
the association. However, he also stated that he kept mum during the meeting and that
is why his dissent was not recorded in the minutes.
75.7 When Mr. Amrutlal was confronted with the MoM of GPMA dated 15.03.2017 wherein
he was appointed as the Joint Treasurer of FIPR and it was also decided to increase the
price of Kraft paper by ₹2 per kg, he admitted that he attended the said meeting and he
was appointed as the Joint Treasurer of FIPR. He, however, stated that he had increased
the price of Kraft paper on his own.
Case No. 24 of 2017 111

75.8 When Mr. Amrutlal was confronted with the MoM dated 07.04.2017 of GPMA wherein
it was decided to shut-down the mills for 7 days every month and from the 2nd to 8th in
the month of May 2017, he admitted having attended the said meeting. He also
admitted that he shut-down the plant of OP-34 with some modifications in the dates.
75.9 When Mr. Amrutlal was confronted with the GPMA MoMs dated 24.07.2017,
28.03.2017, 05.05.2017 and 02.06.2017 wherein it was decided by GPMA to shut the
mills and increase the price of Kraft paper, he admitted having attended the said
meetings. It is also seen that when Mr. Amrutlal was confronted with the backup of
WhatsApp group “Paper Mills - GJ/MS/CG”, he admitted being a member of the said
WhatsApp group, wherein discussions regarding price of Kraft paper, price of raw
material waste paper and collective shut-down of mills took place. Further, when Mr.
Amrutlal was confronted with the backup of another WhatsApp group “NEWS Paper
Mills”, he again admitted that he was a member of the said group, wherein the members
used to discuss the increase of the price of Kraft Paper, shut-down of mills and prices of
the waste paper.
75.10 Further, Mr. Amrutlal also admitted that he was one of the admins of WhatsApp group
“Paper Mills – GJ/MS/CGK”. Mr. Lalit Garg of OP-2 as well as Mr. Omprakash Rathi
of OP-3 also stated that they, along with Mr. Amrutbhai Patel of OP-34 and certain
others were the admins of the said group. The backup of the said WhatsApp group was
filed by Mr. Amrutlal as part of his statement. Some of the messages exchanged by Mr.
Amrutlal Patel in the said WhatsApp group are as under:
Case No. 24 of 2017 112

The above messages of Mr. Amrutlal clearly show that he was in favour of price
increase and even convinced others through his messages.
75.11 It is also noted that when Mr. Amrutlal was confronted with the MoM dated 25.07.2017
of GPMA wherein he suggested to keep the members connected and disciplined and
there should not be a big gap in the meetings of the association, he admitted that he
suggested the same to the association because several times, the mill owners used to not
shut the mills as per the schedule and quarrel with others. He also stated that many
mills did not give the production figures and that is why he suggested the said idea.
75.12 When Mr. Amrutlal was confronted with the MoM of GPMA dated 19.08.2017 wherein
the members shared their production figures, he admitted that he attended the said
meeting and the production figures were shared to estimate the demand so that the rates
can be increased. Mr. Amrutlal also admitted having attended the meetings dated
05.12.2017 and 25.12.2017.
75.13 OP-34 stated that its mere participation at GPMA meetings and membership of
WhatsApp groups wherein important industry issues used to be discussed, without any
evidence whatsoever on record as to whether it increased prices or carried out shut-
downs as per the decisions taken in such meetings, do not establish its culpability
regarding the alleged violation of the provisions of the Act. In fact, from the sale
invoices of OP-34, analysis of its prices prior to and post GPMA decisions can be made
which clearly show that OP-34 did not increase its prices as per GPMA’s directives.
Also, there is no evidence in the DG Report showing simultaneous and uniform price
increase by the OPs. Further, for carrying out shut-down of mills, clear reasons were
given to the DG, which the DG has failed to consider. In fact, there was no artificial
scarcity of Kraft paper created in the market because of the shut-down of mill by OP-
34. OP-34’s customers ought to have been examined in that regard. OP-34 further
submitted that no effective mechanism had been set up to ensure compliance to the
decisions of GPMA/FIPR and most of the members did not comply with the directives
issued. It also made certain other submissions which were largely similar to those
75.14 In the opinion of the Commission, Mr. Amrutlal admittedly attended a number of
meetings of GPMA/FIPR in 2017 in which decisions regarding increase of price as well
Case No. 24 of 2017 113

as shutting down of mills were taken. Also, Mr. Amrutlal was an active member of two
WhatsApp groups which were used for the purposes of discussing the price of Kraft
paper and collective shut-down of mills by the members. In fact, from the WhatsApp
messages of Mr. Amrutlal on record, it is seen that in fact, he was in favour of such
price increase and even convinced others through his messages. He was also stated to
be the admin of one of these two WhatsApp groups. Therefore, based on clear
evidences collected by the DG, as detailed above, the Commission finds that OP-34
was a part of the discussions held at GPMA/FIPR regarding price increase and
collective shut-down of paper mills.
75.15 Even if the submission of OP-34 that it never increased its prices as per the directives
of GPMA is taken at face value, still the directives issued by GPMA were known to it
and as such, its ability to act as an independent competitor in the market stood
compromised. As stated above, the provisions of Section 3(1) of the Act not only
proscribe agreements which cause an AAEC in the market, but also forbid agreements
which are likely to cause an AAEC in the market. The very knowledge of OP-34
regarding such directives was likely to cause AAEC in the market.
75.16 As far as shut-down directives of GPMA are concerned, in his statement recorded
before the DG, Mr. Amrutlal clearly acknowledged that he did, in fact, from time to
time, shut-down the mill as per the shut-down schedule issued by GPMA.
75.18 With respect to penalty also, OP-34 made several submissions which were largely
Case No. 24 of 2017 114

76. OP–35 (Radheshyam Paper Mills Private Limited)
76.1 It is noted from the DG Report that the representative of OP-35, namely, Mr. Sunil R.
Patel, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 19.08.2017
etc., were held.
13.02.2014, 06.01.2017, 30.01.2017, 20.02.2017, 10-11.03.2017 and 18.03.2017 sent
by GPMA to its members.
76.3 In his statement recorded before the DG, Mr. Sunil R. Patel acknowledged as under:
“I am a member of the Kraft association namely Federation of Indian Paper

Recyclers (FIPR), Vapi since 2017. I used to attend most of the meeting of
FIPR. I attended the last meeting of FIPR in 2018. …
After attended the aforesaid meeting I used to discuss with my other directors
of the company regarding the price hike, shutting down of mills etc. …. Our
company also shut-down my manufacturing plant as per GPMA/FIPR
directions and also shut-down the mill on other dates also due to maintenance
and sales problem. Our company was forced to shut-down the mills as per
GPMA/FIPR directions. We scared that GPMA/FIPR may disturb our clients if
we don’t implement the shut-down decisions. After attended the meeting I have
increased the price of Kraft paper as per input cost, market scenario etc. I used
to communicate the price hike decision of Kraft paper to my customer through
telephonic conversation, WhatsApp messages or email message.
I am the member of the said group and I used to receive message regarding
increase in price of the Kraft paper, waste paper, collectively shut-down of the
mills etc. …
I was the member of the WhatsApp group namely “NEWS PAPER MILLS”. I
used to receive message regarding increase in price of the Kraft paper,
collectively shut-down of the mills etc.
My company has implemented the shut-down decisions of GPMA/FIPR
fully/partially on certain occasions due to threat from the association. My
company shut its manufacturing plant during 27-31st January 2017 (5 days),
11-15 Feb 2017 (05 days), 11-15 March 2017 (05 days), 5th -9th April 2017
(05 days), 02-08 May 2017 (07 Days), 01-06 June 2017 (06 days), 27th June to
03 July 2017 (07 days).”
Case No. 24 of 2017 115

76.4 Mr. Sunil R. Patel also acknowledged that he attended 08 meetings of GPMA when he
was confronted with their MoMs. Mr. Patel was also a member of WhatsApp groups
“Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”, wherein discussions regarding
mills took place.
76.5 Screenshots of some of the messages exchanged by Mr. Patel in the WhatsApp Group
“NEWS Paper Mills” are as under:
Case No. 24 of 2017 116

Case No. 24 of 2017 117
From the above messages, it can be seen that Mr. Sunil Patel was in favour of shut-
down decision of GPMA and vide message dated 22.02.2017 at 12:42:31, he suggested
continuing the shut-down schedule from 11.03.2017 to 15.03.2017. In the other
messages dated 03.04.2017 and 26.04.2017 also, it can be seen that he is giving his
assent and support, by flagging thumbs up, to the shut-down and price hike decisions of
GPMA.
76.6 Though Mr. Patel, in his statement recorded before the DG, denied that OP-35
increased the price of Kraft paper as per the directions of GPMA, he admitted that OP-
35 shut-down the plant on many occasions on the directions of GPMA/FIPR.
76.7 In its reply to the DG Report, OP-35 made various submissions which were largely
similar to those raised by GPMA, OP-2 and OP-34.
76.8 In the opinion of the Commission, admittedly, Mr. Patel attended a number of meetings
of GPMA/FIPR in 2017 in which decisions regarding increase of price as well as
shutting down of mills were taken. In fact, in the meeting of GPMA dated 25.07.2017,
Mr. Patel even shared the monthly production of his company with GPMA. Mr. Patel
was also an active member of two WhatsApp groups which were used for the purpose
of discussing the price of Kraft paper and collective shut-down of mills by the
members. Therefore, based on the clear evidences collected by the DG as detailed
above, the Commission finds that OP-35 was a part of the discussions held at
GPMA/FIPR regarding price increase and collective shut-down of paper mills.
76.9 As far as the submission of OP-35 that it never increased its prices as per the directives
of GPMA is concerned, the same has already been dealt with in the earlier part of the
present order. As far as the shut-down directives of GPMA are concerned, in his
statement recorded before the DG, Mr. Sunil Patel clearly acknowledged that he did, in
fact, from time to time, shut-down the mill as per the shut-down schedule issued by
GPMA.
Case No. 24 of 2017 118

77. OP–36 (Neelkanth Pulp and Paper Boards)
77.1 It is noted from the DG Report that the representative of OP-36, namely, Mr. Hitesh
Patel, Partner, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
77.3 In his statement recorded before the DG, Mr. Hitesh Patel acknowledged as under:
“My firm (NPPB) is a member of Federation of Indian Paper Recyclers (FIPR)

since July 2017. I used to attend the meetings of Gujarat Paper Mills
Association (GPMA), Vapi, Gujarat since January 2017. I have attended most
of the meetings of GPMA/FIPR on behalf of my firm. …
In GPMA/FIPR meetings, mill owners used to discuss about market scenario of
Kraft paper, bad debts, technical issues, price of Kraft and waste paper,
shutting down of mills etc.
… In order to show that my firm was following the directions of association
regarding shut-down, I also closed down my plant partially during day time in
the above period. …
Regarding the shut-down of mill, I partially implemented the shut-down
directions of GPMA/FIPR. During 27th to 31st January 2017, 11th to 15th
February 2017, 11th to 15th March 2017, 5th to 9th April 2017, 2nd to 8th
May 2017, 1st to 6th June 2017 and 27th June to 3rd July 2017 I closed my
manufacturing plant. …
I was a member of the WhatsApp group namely “Paper Mills – GJ/MS/C.G.k”
and “NEWS PAPER MILLS”. In the said groups I used to receive message
Case No. 24 of 2017 119

regarding price increase/decrease of Kraft paper, waste paper and shutting
down of mills. …”
77.4 Mr. Patel also acknowledged that he attended several meetings of GPMA wherein, inter
alia, price of Kraft paper and shut-down of mills was discussed, when he was
confronted with the MoMs of such meetings. He was also a member of WhatsApp
groups “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”, wherein discussions
regarding price of Kraft paper, price of raw material waste paper and collective shut-
down of mills took place.
77.5 From his e-mail account, an e-mail dated 06.03.2017 sent by one of his dealers to him
was recovered wherein it could be seen that OP-36 had increased the price of Kraft
paper (12 to 18 BF/80 to 180 GSM) by ₹1/- to ₹2.75/- in March 2017. Though Mr.
Patel denied that OP-36 increased the price of Kraft paper as per the directions of
GPMA, it was noted by the DG that the price of Kraft paper was increased by OP-36 in
the month of March 2017, after Mr. Patel had attended GPMA meeting dated
15.02.2017 wherein it was decided to increase the price of Kraft paper @ ₹1/- per kg.
77.6 Mr. Patel also admitted that OP-36 shut-down the plant on many occasions as per the
directions of GPMA/FIPR.
Case No. 24 of 2017 120

78. OP–37 [Shah Paper Mills Limited (Unit I & II)]
78.1 It is noted from the DG Report that representatives of OP-37, namely, Mr. Ashok Z.
Shah, Director and Mr. Sanju S. Patel, attended several meetings of GPMA dated
01.07.2017, 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017,
members.
78.3 In his statement recorded before the DG, Mr. Ashok Z. Shah acknowledged as under:
“My company is a member of Gujarat Paper Mills Association (GPMA),

Federation of Indian Paper Recyclers (FIPR) and Vapi Industrial Association.
… I remember that in the meetings it was decided to control the price of waste
paper, the mills should be shut-down collectively. GPMA also issued directions
to members including my company to hike the price of different grades of
Finished Kraft Paper … I remember attending these two three meetings of
GPMA on behalf of my company. Shut-down the plant was also undertaken by
my company …
I recollect receiving two three circulars in this regard either by email or by
hand. …
Except one or two meetings, my company has attended all the meetings of
GPMA. These meetings have been attended either by me or Shri Kanti Bhai
Patel.
It was our compulsion to shut-down the mills as per GPMA directions as the
other members would have taken my customers by selling the Kraft Paper at
lower rate. However, there are other reasons also for shut-down the mills ….
However, I would like to mention that despite the shut-down of the mill as per
GPMA schedule, my company had delivered all the order …”
78.4 Further, when confronted with various price hike circulars of GPMA received by OP-
37, Mr. Shah responded with respect to each such circular as under:
“After receiving the said circular, my company also announced price increase
but my company implemented the said price hike on need to need basis and
customer to customer basis. For example, price hike was done for certain
Case No. 24 of 2017 121

customers and it was not done for some other customers but it was increased
on different dates. …”
78.5 When confronted with various MoMs of GPMA wherein it was decided to shut-down
the mills for a certain duration and take disciplinary action against member mills if
found not complying the decisions, Mr. Shah stated as under:
“I admit that the said meeting was attended by me. The aforesaid decision was
taken in the meeting. However, no disciplinary action was taken against our
mill.”
78.6 Mr. Shah also acknowledged that he was a member of WhatsApp groups “Paper Mills –
78.7 Thus, it is observed that Mr. Shah, in his statement recorded before the DG, admitted
that he increased the price of Kraft Paper from time to time though strictly not in accord
with the directions of GPMA and he also admitted that OP-37 shut-down its plant on
many occasions, partially on the directions of GPMA.
78.8 In its reply to the DG Report, OP-37 submitted that the Kraft paper manufactured by it
is customised in nature and Kraft paper is a heterogenous product. As such, it is quite
difficult for different players in the market to collude on aspects of price, production,
shut-down etc. Moreover, it stated that the price applicable to a particular order is
negotiated with each individual buyer. Buyers have significant negotiating power and
thus, suppliers compete on both price as well as quality. Hence, price fixing was not
possible. OP-37 also submitted that it is common for paper mills to shut-down their
plants 2-4 days a month to carry out maintenance and the DG has failed to see whether
the mill was shut-down by OP-37 for any such reason. Further, despite shut-down, the
production of OP-37 remained constant and no scarcity was created in the market. OP-
37 also submitted that the price increase decisions taken by it were taken independently
and not in accordance with GPMA directives and the same is also evident from the
price circulars and sale invoices of OP-37. Further, it was submitted that such price
increases, even if decided by OP-37, could not actually be executed upon the
customers, every time.
78.9 In the opinion of the Commission, evidently, Mr. Ashok Shah attended a number of
meetings of GPMA/FIPR in which decisions regarding increase of price as well as
Case No. 24 of 2017 122

collective shutting down of mills were taken. He was also an active member of two
WhatsApp groups which were used for the purpose of discussing the price of Kraft
Paper and collective shut-down of mills by the members. Price increase circulars post
GPMA meetings were issued by OP-37, even if not on the same dates or to the same
extent as decided by GPMA. The shut-down schedule of OP-37 also at least partially
matches the shut-down schedule proposed by GPMA and Mr. Shah also admitted
before the DG that, even if under compulsion, OP-37 did shut-down its mill as per
GPMA directions and considering other factors. Thus, compliance of GPMA directives
by OP-37, even if partial, is evident from the material available on record.
78.10 In view of the Commission, such directives were actually issued by GPMA and were
known to OP-37 and as such, its ability to act as an independent competitor in the
market stood compromised. As stated above, the provisions of Section 3(1) of the Act
not only proscribe agreements which cause an AAEC in the market, but also forbid
agreements which are likely to cause an AAEC in the market. In the opinion of the
Commission, the very knowledge of OP-37 regarding such directives was likely to
cause AAEC in the market.
78.12 With respect to penalty, OP-37 made several submissions which are more or less
similar to the submissions raised by other OPs.
79. OP–38 (Astron Paper and Board Mill Limited)
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79.1 It is noted from the DG Report that the representative of OP-38, namely, Mr. Kirit
Patel, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 19.08.2017
etc., were held. OP-38 was also named by GPMA as one of its members.
79.2 In his statements recorded before the DG, Mr. Kirit Patel denied his membership of
GPMA, however, when confronted with the MoMs of some of the meetings of GPMA
where he was shown as an attendee, Mr. Patel acknowledged that he did attend some
meetings of GPMA and in such meetings, various issues, including increase in the price
of Kraft paper and collective shut-down of mills, were discussed. In fact, he
acknowledged that, in certain meetings of GPMA, he had mentioned his company’s
monthly production figures in the attendance sheet and signed it.
79.3 When Mr. Patel was confronted with various MoMs of GPMA wherein price increase
or shut-down decisions were taken, he stated that he had opposed such decisions of
collective shut-down of mills in the meeting. However, the Commission notes from the
MoMs of the said meetings that no such dissent/objection/opposition of Mr. Kirit Patel
has been recorded in any of the MoMs.
79.4 When Mr. Patel was questioned about why he continued to attend GPMA meetings
when he had objections to their discussions on issues like collective shut-down, he
replied as under:
“Q. In spite of your objection in GPMA/FIPR meetings on those above issues

why you continued to attend those meetings?
Ans. I was forced to attend the meeting owing to threat from the Association as
well as its member mills. I afraid that Association and its member mills may
persuade my clients/suppliers/transporters from dealing with me and also
because of the reason that my mill is situated in a remote village. I also feared
that by opposing those Association and its member mills my company will be
forced shut-down or will be in heavy loss. My company has already taken huge
financial facility from multiple banks.”
79.5 Mr. Patel also confirmed that he had in fact, increased the price of OP-38’s Kraft paper
after GPMA meetings. However, he stated that he did not increase the price
immediately after the meeting, but did so after noticing the change in cost and comfort
of customers.
Case No. 24 of 2017 124

79.6 It is also noted from the DG Report that though Mr. Patel stated that he was opposed to
the collective shut-down of mills decided in GPMA meetings, the mill of OP-38 was in
fact, closed during 27.01.2017 to 31.01.2017, 12.02.2017 to 16.02.2017, 12.03.2017 to
16.03.2017, 06.04.2017 to 12.04.2017, 03.05.2017 to 08.05.2017, 02.06.2017 to
07.06.2017 and 27.06.2017 to 03.03.2017, which dates match exactly or partially with
the shut-down declared by GPMA. In this regard, all Mr. Patel had to say was that the
said shut-down was due to various reasons such as preventive maintenance, break-
down, shortage in specific orders in width, non-availability of spares/stores, boiler and
power plant passing, environmental issues etc. and in no way, connected to GPMA
decisions.
79.7 It is also noted that OP-38 had issued a price hike circular dated 04.03.2017 to inform
its customers about the price hike of Kraft paper with effect from 19.01.2017,
16.02.2017 and 04.03.2017. The said dates of price increase are exactly the same and to
the tune of the same amount as decided by GPMA in its meetings.
79.8 When Mr. Patel was asked about his membership of WhatsApp groups consisting of
Kraft Paper mills, he claimed that he was a member of two such groups, but he does not
remember their names. He, however, admitted that members of those groups used to
discuss price of Kraft paper, price of waste paper, collective shut-down of mills and its
monitoring in the groups. In his second statement, however, when Mr. Patel was
confronted with backups of these WhatsApp groups, he confirmed that such groups
were “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”, and stated that:
“In this WhatsApp group, members exchanged matters related to industrial

pollution, technical matters, CPCB issues, price increase/decrease of Kraft
Paper, collective shut-down of mills etc. Due to pressure from the office
bearers of GPMA/FIPR namely Shri Sunil Agarwal alias Munnabhai,
President of GPMA/FIPR, Shri Lalit Garg, Secretary of GPMA/FIPR and Shri
Nimish Shah. The above office bearers of GPMA/FIPR used to communicate
with me over telephone or message through WhatsApp for collective price
increase/decrease and collective shut-down of mill and pressing me to remain
active in this WhatsApp group. Due to their frequent threat, I also shared my
price of Kraft paper and shut-down information of my mill on the above-
mentioned WhatsApp group just to show that I was also active in this
WhatsApp group. But actual price increase or decrease was done as per our
input cost and shut-down of mill as per our requirements …
Case No. 24 of 2017 125

Office bearers of GPMA/FIPR threatened me over phone that they will
blacklist my company and my company will not get any transport facility from
transporters, they will ask the villagers to protest against my company because
my plant is located at remote village, complaint to GPCB in case I do not
follow their dictate of price increase or shut-down of mill. It was my
compulsion to follow their direction on certain occasions. …”
Thus, from the above, it is clear that Mr. Patel acknowledged before the DG that he had
shared increase in price and shut-down of his mill in the WhatsApp groups of paper
mills and that he did follow GPMA directions on certain occasions. Some of such
messages exchanged by Mr. Kirit Patel in the WhatsApp groups are as under:
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Case No. 24 of 2017 127
Case No. 24 of 2017 128
From the above communications posted by Mr. Kirit Patel, it is evident that he was an
active member of such WhatsApp groups and he was always supportive of the
decisions of GPMA as well as other associations like Northern India Paper Mills
regarding the increase of price or shut-down of mills. It is noted that, though Mr. Patel,
in his statement recorded before the DG, claimed that he had opposed the price increase
decisions or collective shut-down of mills in GPMA meetings, his messages in the
WhatsApp groups show a completely opposite picture and make it clear that he was
hand in glove with GPMA and other paper mills for collective increase of price of Kraft
Paper and shut-down of mills.
79.10 In the opinion of the Commission, admittedly, Mr. Kirit Patel attended a number of
meetings of GPMA/FIPR in which decisions regarding increase of price as well as
shutting down of mills were taken. Mr. Patel even shared monthly production of his
company with GPMA. There is no record of his alleged dissent recorded in the MoMs
of any of such meetings. Mr. Patel was also an active member of two WhatsApp groups
which were used for the purpose of discussing the price of Kraft paper and collective
shut-down of mills by the members. At least one price increase circular of OP-38
exactly matches GPMA decision and shut-down schedule of OP-38 also matches, albeit
partially, the shut-down schedule proposed by GPMA. Mr. Patel also acknowledged
before the DG that on certain occasions, OP-38 complied with GPMA directives,
though he stated that the same was under force/threat by GPMA.
Case No. 24 of 2017 129

79.12 With respect to penalty, OP-38 made several submissions which were largely similar to
79.13 Such submissions of OP-38 shall be considered in the subsequent part of the present
order, where imposition of penalty is dealt with.
80. OP–39 (Mac Paper Mill)
80.1 It is noted from the DG Report that the representative of OP-39, namely, Mr. Prahlad
Patel, Trustee (who is also the Trustee of OP-53), attended several meetings of GPMA
dated 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017,
13.02.2014, 09.09.2016, 06.01.2017, 30.01.2017, 20.02.2017, 10-11.03.2017 and
80.3 In his statement recorded before the DG, Mr. Prahlad Patel acknowledged as under:
“Yes, I have attended 6 or 7 meetings of Gujarat Paper Mills Association

(GPMA) representing Mac Paper Mill and Karan Paper Mill in which mill
owners/representatives of the mills from Gujarat and Maharashtra states also
attended.
… In GPMA/FIPR meetings price hike decision and collective shutting
schedule were decided by the Shri Sunil Aggarwal (Munnabhai), President of
GPMA/FIPR.
I was a member of the WhatsApp Group namely “Paper Mills –
GJ/MS/C.G.K” and “NEWS PAPER MILLS” …
In this WhatsApp Group members discussed about GPMA meetings, price of
waste paper, availability of waste paper both local and imported, decision of
GPMA regarding price of Kraft Paper and planned shut-down of mills,
technical issues etc. …
I do not remember regarding receipt of any circular from GPMA/FIPR but my
firm has received couple of MOMs of GPMA/FIPR …
My firm (MPM) has not implemented the price hike decision in the same
quantum as suggested by GPMA/FIPR in the meetings. However, I have
implemented the price hike decision taking into consideration of input cost. … I
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have communicated the price hike decision of Kraft Paper to my major clients
through email messages. …
Regarding the collective shutting down decision of mills by GPMA/FIPR, my
firm has implemented the decision on certain occasions owing to shortage of
orders/waste paper. For example, if GPMA/FIPR decided to shut-down the
mills for 5 days, my firm has shut the mill for 3 or 4 days. Even though my firm
has partially implemented the shut-down decision of GPMA/FIPR, …”
80.4 Thus, evidently, Mr. Prahlad Patel admitted to his participation in GPMA meetings as
well as in the WhatsApp groups “Paper Mills – GJ/MS/CGK” and “NEWS Paper
Mills”, wherein discussions regarding price of Kraft paper, price of raw material waste
paper and collective shut-down of mills took place. He also admitted that OP-39
implemented GPMA price hike decisions, however, he stated that it was not to the same
extent as decided. Similarly, he also admitted to have at least partially implemented the
collective shut-down decisions of GPMA.
80.5 It is also noted from the DG Report that Mr. Prahlad Patel was on the Board of
Directors of FIPR from 2017 till April 2019.
issued by GPMA/FIPR, fully or partially. Such conduct of OP-39 amounts to indirectly
determining the sale prices of Kraft paper in contravention of the provisions of Section
3(3)(a) of the Act and limiting and controlling the production, supply and market of
Kraft paper in contravention of the provisions of Section 3(3)(b) of the Act, read with
Section 3(1) of the Act.
80.9 Such submissions of OP-39 shall be considered in the subsequent part of the present
order, where imposition of penalty is dealt with.
81. OP–40 (Somnath Kraft Mill Private Limited)
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81.1 It is noted from the DG Report that the representative of OP-40, namely, Mr. Hiren
Agola, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 19.08.2017 and
were held.
recipients of the e-mails dated 10-11.03.2017 and 18.03.2017 sent by GPMA to its
members.
81.3 In his statement recorded before the DG in Hindi, Mr. Hiren Agola admitted of his
participation in various GPMA meetings from 2016 onwards, wherein many issues
including price of Kraft paper, price of waste paper and collective shut-down of mills
were discussed. Mr. Agola admitted that he once paid ₹15,000/- as membership fee to
GPMA and that he was a member of WhatsApp group “Paper Mills – GJ/MS/CGK”.
Mr. Agola admitted that, in the said WhatsApp group, members used to discuss the
pricing of Kraft paper, waste paper, shut-down of mills and agendas of GPMA
meetings.
81.4 When Mr. Agola was asked about the increase of price on the directions of GPMA, he
stated that after GPMA meetings, the members used to increase the price but he
increased the price on his own due to more orders in hand. He also admitted that,
though he did not shut-down his plant on the directions of GPMA, but during the said
period when GPMA decided to shut-down the plants, he also used to do maintenance of
the plant. Thus, indirectly, Mr. Agola admitted that he also shut-down his plant as and
when decided by GPMA.
81.5 When Mr. Agola was confronted with the MoM of FIPR dated 19.08.2017 wherein he
had also shared his company’s production figures, he admitted that he attended the said
meeting of FIPR and shared the production figures therein so that the total production
in Gujarat can be estimated and GPMA could decide when to shut the mills. When Mr.
Agola was confronted with the MoM of FIPR dated 25.12.2017, he admitted having
attended the said meeting wherein it was discussed that all paper mills should remain
united.
Case No. 24 of 2017 132

81.6 When Mr. Agola was confronted with the backup of WhatsApp group “NEWS Paper
Mills”, he admitted to being a member therein and also confirmed that it was the
backup of the same group where members used to decide to increase the price of Kraft
paper, discuss waste paper and collective shut-down of mills. He gave the same answer
in response to the backup of WhatsApp group “Paper Mills – GJ/MS/CGK”. It is noted
from the WhatsApp backup that in response to the following message posted by Mr.
Sunil Aggarwal, President of GPMA/FIPR in the group on 05.12.2017, Mr. Agola
posted a thumbs up:
“Dear members, today’s meeting it has been decided to increase finish paper
rates of all grades by 1000 rupees per ton with immediate effect. Next joint
meeting for further rate increase has been schedule on 25th December.
Meeting will be Vapi. All members are requested to do needful at the earliest.
Sunil Agarwal, President FIPR”
In his statement, Mr. Agola admitted that he showed his concurrence to the price
increase by sending the thumbs up but that he did not increase the price immediately
and only did after 10–15 days.
81.7 Further, when Mr. Agola was confronted with the MoM of GPMA dated 15.02.2017
wherein it was decided to increase the price by ₹1 per kg from 01.03.2017 and shut-
down the mills from 11.03.2017 to 15.03.2017, he admitted to having attended the said
meeting but stated that he did not increase the price immediately. He gave the same
answer when he was confronted with GPMA MoMs dated 15.07.2017, 28.03.2017,
07.04.2017, 05.05.2017 and 02.06.2017.
Case No. 24 of 2017 133

82. OP–41 (Resonance Paper Mill Private Limited)
82.1 It is noted from the DG Report that representatives of OP-41, namely, Mr. Shailesh
Mundadiya, Director and Mr. Abhishek Singhal, office staff, attended several meetings
of GPMA dated 15.02.2017, 15.03.2017, 07.04.2017, 05.05.2017, 25.07.2017,
19.08.2017, 05.12.2017 and 25.12.2017 wherein discussions regarding fixing of prices,
members.
82.3 In his statement recorded before the DG, Mr. Shailesh Mundadiya acknowledged as
under:
“… I have attended 5 to 7 meetings of Kraft Paper Manufacturers Association

namely, Gujarat Paper Mills Association (GPMA) and Federation of Indian
Paper Recyclers (FIPR). I have attended the last meeting of the above
Association about one year back (2018). I have paid one-time contribution of
Rs.25000 (Appx.) to the Association. … One of my office staff Shri Abhishek
Agarwal alias Shri Abhishek Singhal also attended one of the meetings of
GPMA during 2017/2018.
In GPMA/FIPR meetings in which I have attended the important points being
discussed such as increase of price of Kraft Paper due to losses, shortage of
waste paper including imported/local, pollution related, technical matters,
collective shutting down of mills, fixing of waste paper price etc.
I was a member of the WhatsApp group operated by the office bearers of
GPMA/FIPR namely “Paper Mills – GJ/MS/C.G.k.”. … Shri Abhishek Singhal
was also a member of above WhatsApp group and he used to translate me
messages received in English the said group such as meetings dates, price of
Kraft Paper, price of waste paper, collective shutting down of mills, pollution
problems etc. …
… are minutes of the meetings of GPMA received by me wherein it has been
mentioned about the decision taken by the association to increase the price of
Case No. 24 of 2017 134

Kraft Paper. The said minutes of the meetings have been received by me over
email from Shri Sunil Agrawal alias Munnabhai of GPMA. After the said
meetings and receiving of the minutes of the meetings from GPMA, my
company on certain occasions only had increased the price of Kraft Paper and
on certain occasions increased less price as compare to what was decided by
GPMA and on certain occasions did not increase the price. The price had been
increased on the basis of the increase in cost also.
I admit that on the said dates, I shut-down my factory on the instructions of
GPMA. However, I would also like to state that during the said period, my
company was also having shortage of orders. On certain occasions the shut-
down period of my factory was even more than the decided date. …
I admit that myself and Shri Abhishek were members of the said group. I
confirm the backup communication as shown to me. In the said WhatsApp
group, I have shown thumps-up on many occasions on the decisions of the
association regarding collective price hike of Kraft Paper and shut-down of
mill. The mill owners used to confirm in the group about their increase of price
of Kraft Paper as per the directions of GPMA. I would like to state that on
certain occasions the mill owners confirmed about the increase of the price of
Kraft Paper due to fear of GPMA however, in the background they also issued
debit notes to their customers. I admit that my company also increase the price
of Kraft Paper as per GPMA directions but the increase was not immediate
and, in many cases, my company increase the price after sometime of decision
taken by GPMA. The price increase was also not exact same as decided by
GPMA …”
82.4 Thus, evidently, Mr. Mundadiya admitted of his participation in GPMA meetings as
well as in the WhatsApp group “Paper Mills – GJ/MS/CGK”, wherein discussions
regarding price of Kraft paper, price of raw material waste paper and collective shut-
down of mills took place. In the WhatsApp group, Mr. Mundadiya even concurred with
the price increase decisions of GPMA from time to time. He also admitted that OP-41
implemented GPMA price hike decisions as well as collective shut-down decisions of
GPMA, though he stated that the same were not exactly as was decided by GPMA and
was also based on certain other factors.
Case No. 24 of 2017 135

82.7 With respect to penalty, OP-41 also made several submissions which were largely
83. OP–42 (Riddhi Siddhi Recyclers Private Limited)
83.1 It is noted from the DG Report that the representative of OP-42, namely, Mr. Ketan
Pandya, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017 and 19.08.2017 wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held. OP-42
was also named by GPMA as one of its members.
83.2 In his statement recorded before the DG, Mr. Ketan Pandya acknowledged as under:
“… I have attended 5-6 meetings of Gujarat Paper Mills Association (GPMA)

representing RSRPL. I have never paid any membership fee to GPMA.
However, I was a member of the Debt Recovery Committee of GPMA.
In GPMA meetings in which I have attended the points being discussed are
pollution related issues, GST/Income tax related issues, Bad Debts, increase in
the price of Kraft Paper, increase/decrease in the price of waste paper,
Collective shutting down of mills etc.
I used to receive telephone calls/emails/WhatsApp messages from GPMA
regarding the proposed meetings. Regarding GPMA meetings I used to receive
telephone calls from Shri Sunil Agarwal alias Munnabhai, President, Shri Lalit
Garg, Secretary, Shri Nimish Shah (office bearers of GPMA) and Shri Ganesh
Thakur, employee of GPMA.
… I have received 2-3 communications from GPMA regarding price hike of
Kraft Paper and collective shut-down of mills.
I was member of two WhatsApp groups operated by Kraft Paper
Manufacturers namely “NEWS PAPER MILLS” and “Paper Mills –
Case No. 24 of 2017 136

GJ/MS/C.G.K.” operated by the above association. In these WhatsApp groups
members exchanged price of Kraft Paper/waste paper, collective shut-down of
mills, part of paper mill machinery for sale/purchase, meetings of GPMA, debt
recovery by mills etc. I also exchanged messages in those WhatsApp groups
regarding price of waste paper, increase in price of Kraft Paper and shut-
down implemented by my company etc.
I have also implemented the price hike decision in my company after GPMA
decisions, but before implementing the price hike decision my company taken
into consideration the input cost and market scenario at that time. …
My company informed the price hike decision of Kraft Paper to Kraft Paper
dealers/corrugators through email communication, telephone, WhatsApp
messages, courier service. …
I admit that I have also implemented the collective shut-down decision of
GPMA/FIPR in my company but the period of shut down may be exactly the
same period or for a lesser period or greater period decided by the
Association. …
Yes, these were the same WhatsApp group in which I was a member. … In the
said groups members used to put the rate of waste papers, Kraft Paper etc. I
also exchanged messages on the above WhatsApp groups regarding price of
Kraft Paper and waste paper in Ahmedabad region of various mills including
my mill.”
83.3 When confronted with various MoMs of GPMA, Mr. Pandya admitted that he
implemented the price hike and collective shut-down decisions taken in those meetings,
although not to the full extent.
83.4 Thus, evidently, Mr. Pandya admitted of his participation in GPMA meetings as well as
in the WhatsApp groups “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”,
and collective shut-down of mills took place. He also admitted that OP-42 implemented
GPMA price hike decisions, although not to the extent decided. Similarly, he admitted
to have at partially implemented the collective shut-down decisions of GPMA. Mr.
Pandya was also a member of the Debt Recovery Committee of GPMA.
Case No. 24 of 2017 137

84. OP–43 (Aryan Paper Mills Private Limited)
84.1 It is noted from the DG Report that the representative of OP-43, namely, Mr. Mihir
Shah, Director, attended several meetings of GPMA including those dated 15.02.2017,
15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017,
members.
84.3 In his statement recorded before the DG, Mr. Mihir Shah acknowledged as under:
“Yes, my company is a member of Gujarat Paper Mills Association (GPMA),

Federation of Indian Paper Recyclers (FIPR), Vapi Industrial Association
(VIA) and Material Recycling Association of India (MRAI). I am also a
member of Vapi Green Enviro Ltd. (VGE), but I am not sure whether this is an
Association. I also paid membership fee to GPMA but I am not sure whether I
have paid membership fee to FIPR. … I have attended the last meeting of FIPR
around 1st half of 2017.
Representing my company, I have attended around 25-30 meetings of
GPMA/FIPR. … In GPMA/FIPR meetings points being discussed such as
pollution issues, excise and customs issues, Government liasoning, Supply of
Case No. 24 of 2017 138

waste paper, price of waste paper both local/imported, price of Kraft Paper,
collective shut-down of mills etc.
It is true that on certain occasions my company partially implemented the price
hike decision …
Yes, my company also implemented the shut-down decision as directed by
GPMA/FIPR almost all occasions …
Yes, I was member of the WhatsApp groups namely “PAPER MILLS –
GJ/MS/C.G.K.” and “NEWS PAPER MILLS” operated by the office bearers of
GPMA/FIPR.
… In this WhatsApp group members exchanged points related to price of Kraft
Paper, price of waste paper, collective shut-down of mills, market trend of
Kraft Paper/waste paper, pollution related issues, government related matters,
economic scenario/news, general issues etc.
Yes, I admit that the above price hike circulars issued by GPMA might have
been received by my company …”
84.4 When confronted with 13 MoMs of GPMA, Mr. Shah confirmed that he has attended
all such meetings and, in these meetings, “it was decided by GPMA/FIPR to increase
the price collectively and collectively shut-down the mills during certain periods.”
84.5 Thus, evidently, Mr. Mihir Shah admitted of his participation in GPMA meetings as
well as WhatsApp groups “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”,
and collective shut-down of mills took place. He also admitted that OP-43 partially
implemented GPMA price hike decisions and collective shut-down decisions of
GPMA.
84.6 In its reply to the DG Report, OP-43 submitted that it had, vide e-mail dated
21.05.2018, objected to certain decisions taken by GPMA. It also submitted that there is
no proof on record that OP-43 received any price increase circulars of GPMA. OP-43
also made several submissions similar to those raised by other OPs earlier, which have
already been dealt with in the earlier parts of the present order.
84.7 The Commission notes that, in its entire reply to the DG Report, OP-43 has not made
any comment on the fact that Mr. Mihir Shah, in his deposition recorded before the DG,
has categorically admitted that OP-43 had partially implemented GPMA price hike
decisions and collective shut-down decisions of GPMA. Further, it is noted from the
Case No. 24 of 2017 139

documents annexed with the reply of OP-43 that it did increase the prices of its Kraft
paper from time to time as well shut-down its plant from time to time, coinciding with
the decisions taken by GPMA in this regard. Though the price increase and shut-downs
undertaken by OP-43 may not exactly be in accord with the decisions of GPMA and
may also have been based upon other factors, the evidence on record clearly shows that
the same were, in fact, influenced by GPMA meetings and decisions and, as admitted
by Mr. Shah, were in partial implementation of GPMA decisions. In view of the
Commission, such directives were actually issued by GPMA and were known to OP-
43.. As stated above, the provisions of Section 3(1) of the Act not only proscribe
agreements which cause an AAEC in the market, but also forbid agreements which are
likely to cause an AAEC in the market. The very knowledge of OP-43 regarding such
directives compromised its independence and was likely to cause AAEC in the market.
those raised by the other OPs in the matter.
85. OP–44 (Surani Paper Private Limited)
85.1 It is noted from the DG Report that representatives of OP-44, namely, Mr. Mehul R.
Surani, Managing Director and Mr. Tejas Surani, nephew of one of the Directors,
attended several meetings of GPMA dated 15.02.2017, 15.03.2017, 28.03.2017,
regarding fixing of prices, shutting down of mills, etc., were held. OP-44 was also
named by GPMA as one of its members.
Case No. 24 of 2017 140

85.2 In his statement recorded before the DG, Mr. Mehul Surani acknowledged as under:
“Yes, I have attended 5-6 meetings of GPMA since the initial period of 2017.
Representing SPPL I alone attended the above GPMA meetings. I have
attended the last meeting of GPMA during June 2017.
In the meetings of GPMA in which I have attended the main points being
discussed are pollution related, GST matters, price of Kraft paper, collective
shutting down of mills and rate of waste paper.
I used to receive telephonic calls from Sh. Sunil Agarwal, President of GPMA,
Sh. Lalit Garg, Secretary of GPMA, Sh. Nimish of GPMA or Sh. Ganesh from
GPMA’s office. Sometimes I have received messages regarding the proposed
GPMA meetings through WhatsApp Group messages.
I was a member of two WhatsApp Groups namely ‘PAPER MILLS –
GJ/MS/C.G.K’ and ‘NEWS PAPER MILLS’. … Sh. Tejas Patel, nephew of Sh.
Surendrabhai Patel, Director was also a member of the WhatsApp Group
namely ‘PAPER MILLS – GJ/MS/C.G.K’. However, he did not hold any
official position in SPPL.
In the above WhatsApp Group members exchanged matters related to price of
Kraft paper, price of waste paper, pollution related issues, technical issues,
sale/purchase of spare parts of paper mills, collective shutting down of mills
etc.
Shri Nimish Bhai Patel of GPMA got me added in the said group without my
permission.
Since I was getting to know about the market trend such as rate of waste paper
and finished paper of other mills, rate of imported waste, when the mills
getting shut-down etc. that is why I did not leave the group.
I admit that the mill owners except my company used to discuss the prices of
Kraft paper, collective shut-down of mills and prices of waste paper in
GPMA/FIPR meetings. However, the individual mill owners used to implement
the said decision as per their order book. GPMA wanted to know the total
production capacity of Gujarat, Maharashtra and Chhattisgarh Paper mills.
That is why I shared my production capacity in GPMA meeting of
19.08.2017.”
85.3 When confronted with various MoMs of GPMA, Mr. Surani admitted of his
participation in GPMA meetings and acknowledged that price increase and collective
shut-down was decided in the meetings; however, he stated that he did not implement
such decisions. It can also be seen that, in the meeting dated 19.08.2017, Mr. Surani
shared OP-44’s production capacity. Mr. Surani also admitted before the DG that he
Case No. 24 of 2017 141

never objected to the decisions taken in GPMA meetings. He also admitted that he did
not consider it correct that price increase and shut-down of mills were discussed in
GPMA meetings. In other words, Mr. Surani was aware that he was involved in
unlawful activities. Mr. Surani also admitted before the DG that sometimes, his
company got the benefit of price increase through GPMA meetings. It is also seen that
Mr. Surani used to get e-mails from competitors about their price increase.
85.4 Further, Mr. Surani admitted before the DG, his membership in the WhatsApp groups
mills took place. He even stated that he did not leave the NEWS group because he was
getting to know in the same about the rate of finished paper of other mills, when the
mills were being shut-down etc.
85.5 It can also be seen from the DG Report that the manufacturing plant of OP-44 was
closed during 27.01.2017, 11.03.2017, 02.05.2017, 07.05.2017, 08.05.2017, 28.06.2017
to 30.06.2017 and 01.07.2017 to 03.07.2017, which dates exactly coincide with the
collective shut-down decisions of GPMA. In his statement, Mr. Surani stated that this is
merely a co-incidence.
Case No. 24 of 2017 142

86. OP–45 (Latin Paper Industries LLP)
86.1 It is noted from the DG Report that representatives of OP-45, namely, Mr. Sandip
Sarsani and Mr. Mansukh Patel, Partners, attended several meetings of GPMA dated
15.02.2017, 15.03.2017, 24.04.2017, 02.06.2017, 25.07.2017, 19.08.2017 and
were held.
recipients of the e-mails dated 10–11.03.2017 and 18.03.2017 sent by GPMA to its
members.
86.3 In his statement recorded before the DG, Mr. Sandip Sarsani acknowledged as under:
“… I had attended 5-6 meetings of Gujarat Paper Mills Association (GPMA). I

have received telephonic communications from Shri Sunil Agarwal alias
Munnabhai, President of GPMA regarding the convening of meetings of
GPMA. I started attending GPMA meetings during the second half of 2016. I
do not recollect the month/year in which I have attended the last meeting of
GPMA.
In most of the meetings of GPMA mill owners from the states of Gujarat and
Maharashtra attended. Attendees of GPMA discussed about pollution related
issues, matters related to GST implementation, rate of imported waste paper,
rate of Kraft Paper and collective shutting down of mills.
I have received email from GPMA regarding collective price hike of Kraft
Paper and collective shutting down of mill. … Regarding increasing the price
of Kraft Paper my firm informed the same to my dealers/corrugators over
telephone or through email.
I have attended the above GPMA meetings to get information regarding
pollution issues, GST related matters, rate of imported waste paper, rate of
Kraft Paper and collective shutting down of mills etc. After attending the said
meetings, I have also increased the price of Kraft Paper taken into
consideration the hike in the input cost.
I alone was a member of the WhatsApp group namely “PAPER MILLS –
GJ/MS/C.G.K.” operated by GPMA officials.
Case No. 24 of 2017 143

In the above WhatsApp group namely “PAPER MILLS – GJ/MS/C.G.k.” in
which I was a member, mill owners discussed about GPMA/FIPR meetings,
recovery of pending dues from the corrugators/traders, price of imported waste
paper, increase of price of Kraft Paper, availability of supply order of Kraft
Paper and collective shutting down of mill was discussed in the above
WhatsApp group.
… I also admit that Shri Bharat Patel, one of the office staff of our firm was
also a member of the WhatsApp group mentioned above.
I got to know about the prices of Kraft Paper. The prices decided by GPMA
also benefited my firm somehow in the increase of price. If GPMA had decided
to increase Rs.2 per KG then the said price hike decision benefited my firm in
increase of price which may not exact Rs.2 per KG. The collective shut-down
of mills decisions taken by GPMA also benefited my firm in stabilization of
existing rates and creation of demand.”
86.4 Thus, evidently, Mr. Sarsani admitted of his participation in GPMA meetings as well as
GPMA price hike decisions, although not to the same extent as decided. Similarly, he
also admitted to having implemented the collective shut-down decisions of GPMA. It
was also noted by the DG that the price increase (14 BF paper to ₹25.25, 16 BF to
₹25.75, 18 BF to ₹26.75, 20 BF to ₹27.75 and 22 BF to ₹28.75 from ₹22.75, ₹23.25,
₹24.25, ₹25.25 and ₹26.25 respectively, which price increase matches with price hike
decision taken by GPMA in meeting dated 15.03.2017) as well as shut-down dates (27-
31.01.2017, 11-15.02.2017, 05-09.04.2017, 02-08.05.2017, 03-06.06.2017, 29.06-
03.07.2017) of OP-45, matched the decisions taken in GPMA meetings.
Case No. 24 of 2017 144

87. OP–46 (Axle Paper Limited)
87.1 It is noted from the DG Report that representatives of OP-46, namely, Mr. Vipul Kalia,
Managing Director and Mr. Lalit Kumar Premjibhai, employee, attended several
87.2 Further, OP-46 was also one of the recipients of the e-mails dated 10–11.03.2017 and
87.3 In his statement recorded (in Hindi) before the DG, Mr. Lalit acknowledged that he had
attended some meetings of GPMA after the start of the production of the company in
March 2017. He admitted that, in GPMA meetings attended by him, the attendees
discussed how to increase the price of Kraft paper. He also admitted that, in other
meetings of GPMA, which were not attended by him, it was discussed to collectively
shut-down the mills. It is also noted from the DG Report that Mr. Lalit shared the
production figures of the company in GPMA meeting dated 25.07.2017.
87.4 Initially, Mr. Patel denied before the DG that he was in contact with the other paper
mills through any mode of communication including WhatsApp. However, when
confronted with the backup of the WhatsApp group “Paper Mills – GJ/MS/CGK”, he
admitted that he was a member of the said group. It is noted from the backup of
messages of the said group that, on 05.12.2017, Mr. Sunil Agarwal @Munna Bhai,
President of GPMA, had sent a message regarding the decision take by GPMA to
increase the price of Kraft paper by ₹1,000 per ton to which Mr. Lalit apparently gave
concurrence by sending a thumbs up emoji. When Mr. Lalit was confronted with the
Case No. 24 of 2017 145

said message, he replied that he had no answer. Earlier, Mr. Lalit had stated that he did
not read the messages of the said WhatsApp group.
87.5 It can also be seen from the DG Report that Mr. Lalit again tendered his apology before
the DG of giving false answers. He confessed that after the decision of GPMA dated
05.12.2017, as conveyed in the WhatsApp group, his company increased the price of
Kraft paper as per the directions of GPMA. He also confessed that whenever GPMA
decided to increase the price of Kraft paper, OP-46 also increased the price.
87.6 It can also be seen from the DG Report that the manufacturing plant of OP-46 was shut
from 11.02.2017 to 15.02.2017, 11.03.2017 to 15.03.2017, 05.04.2017 to 09.04.2017,
02.05.2017 to 08.05.2017, 01.06.2017 to 06.06.2017 and 26.06.20176 to 03.07.2017
which dates match with the shut-down dates declared by GPMA. When Mr. Lalit Patel
was confronted with the same, he gave an evasive answer that he could not recollect.
87.7 Thus, evidently, Mr. Patel admitted of his participation in GPMA meetings as well as in
the WhatsApp Group “Paper Mills – GJ/MS/CGK”, wherein discussions regarding
mills took place. He also admitted that OP-46 partially implemented GPMA price hike
decisions from time to time and it is evident that OP-46 also implemented the collective
shut-down decisions of GPMA.
Case No. 24 of 2017 146

88. OP–47 (Samruddhi Paper and Pulp Conversion Private Limited)
88.1 It is noted from the DG Report that representatives of OP-47, namely, Mr. Sunil
Didwania, Former Director and his son Mr. Raghav Didwania, attended several
meetings of GPMA dated 15.02.2017, 15.03.2017, 07.04.2017, 05.05.2017 and
were held.
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 30.01.2017, 20.02.2017,
88.3 In his statements recorded before the DG, Mr. Sunil Didwania acknowledged as under:
“… SPPC has paid an amount of Rs.5000/- (Appx.) during 2016 end as

contribution to Gujarat Paper Mills Association (GPMA)/Maharashtra Wing
of GPMA. Representing SPPC, I have attended 4 to 5 meetings of GPMA and
one or two occasions my son Shri Raghav Didwania too attended GPMA
meetings. Shri Tushar Pratap Sonawane might have attended one meeting of
GPMA, but I could not recollect the specific details of the meeting. I started
attended the meetings of GPMA during the third quarter of 2016 and I
attended the last meeting during April 2017. Even though I left SPPC from
28.02.2017, yet I continued to attend the meetings of GPMA as per the request
of Shri Pratap Dada Sonawane, father of Shri Tushar Sonawane. Because Shri
Tushar Sonawane had some severe health problem and he was in
rehabilitation centre during this period for six months.
During the above meetings in which I have attended the main points being
discussed such as increase of price of Kraft Paper, Price of waste paper,
collective shutting down of mills, pollution issues, marketing issues, delay in
recovery of dues from dealers etc.
When I was one of the Directors of SPPC, I received WhatsApp messages from
the WhatsApp group namely “Paper Mills – GJ/MS/C.G.K.” operated by the
office bearers of GPMA regarding conducting of GPMA meetings. I was also
one of the members of the WhatsApp group operated by Maharashtra wing of
GPMA, namely “Paper Mills Maharashtra”, but I am not sure whether I have
received any message regarding GPMA meetings in this group. However, I
Case No. 24 of 2017 147

have never received any communication through telephone or email regarding
GPMA meetings. …”
“Member mills discussed issues such as increase of price of Kraft Paper, Price
of domestic/imported waste paper, collective shutting down of mills, pollution
issues, marketing issues, delay in recovery of dues from dealers etc.
I admit that on certain occasions SPPC has implemented the collective price
hike decisions of GPMA. However, I would like to state that SPPC was never
part of any collective shut during my tenure, but during the period from
November 2016 to February 2017 SPPC was completely shut due to financial
losses.”
88.4 When confronted with MoMs of various GPMA meetings attended by him, Mr.
Didwania confirmed that he had attended the said meetings. He stated that, as Mr.
Tushar Sonawane, present Director of OP-47, was not attending to the day-to-day
affairs of the company owing to health issues, he was requested by the father of Mr.
Sonawane to attend those meetings as he is based in Bombay. He stated that he had
informed the decisions of GPMA meetings to one Mr. Anil Nemade, Accountant of
OP-47, and he is not aware whether the said decisions of GPMA were implemented by
OP-47 or not.
88.5 He further stated that the manufacturing plant of the company was totally shut from
October 2016 to March 2017 due to certain issues. From his e-mail ID, two e-mails –
one dated 29.02.2016 sent by OP-19 and other dated 23.02.2017 - sent by OP-50,
regarding price increase, were recovered.
88.6 In its reply to the DG Report, OP-47 stated that Mr. Sunil Didwania, Former Director
of OP-47, who had attended GPMA meetings and whose statement was recorded on
behalf of OP-47, had resigned from OP-47 w.e.f. 20.02.2017. Thereafter, he had no
authority to do any act on behalf of OP-47. He may have attended GPMA meetings or
been a part of the WhatsApp group of paper mills, but the same were then in his
personal capacity as he has his own paper business also. Further, on the date of
recording of his statements by the DG, he had no authority to speak on behalf of OP-47.
When Mr. Sonawane had received the DG notice for recording of his statement, he had
requested the DG to give him some time as his father was undergoing a major brain
surgery at the time. However, the DG instead recorded the statement of Mr. Didwania.
His admissions cannot be used against OP-47. Since 2013, Mr. Sonawane had not
Case No. 24 of 2017 148

attended any meetings of GPMA. Mr. Sonawane was also never a part of any alleged
WhatsApp groups. OP-47 was also never a part of any collective shut-down. E-mails
received on OP-47’s e-mail ID cannot be used as evidence as the e-mail ID was
generally available in the industry. No price increases were undertaken by OP-47 as per
GPMA directives. The two e-mails regarding price increase were received by Mr.
Didwania on his personal e-mail ID and not on OP-47’s official e-mail ID and OP-47
had no business dealings with these two competitors. Further, certain other submissions
similar to those raised by the other OPs, as have been dealt with earlier, were also
made.
88.7 In the opinion of the Commission, from the statement of Mr. Didwania, it is clear that
he, even post his resignation from OP-47 in February 2017, continued to attend the
meetings of GPMA on behalf of OP-47 on request of Mr. Tushar Sonawane’s father, as
Mr. Didwania was based in Bombay where the meetings took place. Further, from the
reply to the DG Report filed by OP-47, it is also evident that Mr. Sonawane was in fact,
indisposed from December 2016 to June 2017. Hence, it is not unbelievable that Mr.
Didwania, who was representing OP-47 in GPMA meetings and WhatsApp groups
“Paper Mills – GJ/MS/C.G.K.” and of Maharashtra Paper Mills till February 2017,
continued to do so even thereafter. Hence, evidently, Mr. Didwania, on behalf of OP-
47, was a part of the discussions held at GPMA/FIPR regarding price increase and
collective shut-down of paper mills. In view of the Commission, such directives were
actually issued by GPMA and were known to OP-47 and as such, its ability to act as an
independent competitor in the market stood compromised. Given that the very
knowledge of OP-47 about the competitors’ strategies, compromised its independence
and was, in fact, detrimental to competition, the same was likely to cause AAEC in the
market.
Kraft paper and collective shut-down of paper mills. Such conduct of OP-47 amounts to
indirectly determining the sale prices of Kraft paper in contravention of the provisions
of Section 3(3)(a) of the Act and limiting and controlling the production, supply and
market of Kraft paper in contravention of the provisions of Section 3(3)(b) of the Act,
read with Section 3(1) of the Act.
Case No. 24 of 2017 149

89. OP–48 (Laxmi Board and Paper Mill Private Limited)
89.1 It is noted from the DG Report that representatives of OP-48, namely, Mr. Ajay Patel
and Mr. Rajesh Modi, Directors, attended several meetings of GPMA dated 15.02.2017,
15.03.2017, 07.04.2017, 05.05.2017, 02.06.2017 and 25.07.2017 wherein discussions
13.02.2014, 16.02.2016, 09.09.2016, 26.11.2016, 06.01.2017, 20.02.2017, 10-
89.3 In his statements recorded before the DG, Mr. Rajesh Modi acknowledged as under:
“… myself and Shri Ajay Patel, Director have attended some of the meetings of
Gujarat Paper Mills Association (GPMA)/Federation of Indian Paper
Recyclers (FIPR). Myself and Shri Ajay Patel, Director started attending the
meetings of GPMA since 2008 as an invitee. I attended the last meeting of
FIPR during the first half of 2018. I have attended maximum 5 to 6 meetings of
GPMA/FIPR during the last four years and attended a maximum of 10
meetings during the period 2008 to 2018. My company has paid Rs.2 Lakhs
(Appx.) to FIPR towards contribution to meet the expenditure of its meetings.
…
In those meetings in which I have attended attendees discussed issues related
to pollution, bad debt recovery, increasing the price of Kraft Paper, non-
availability of skilled labour, collective shutting down of mills, availability and
price of local waste paper, GST related queries etc. My company received
email communications and WhatsApp messages from GPMA/FIPR. …
Yes, myself and Shri Ajay Patel, Director of LBPM were members of only one
WhatsApp group namely “NEWS PAPER MILLS”, where Shri Sunil Agarwal
alias Munnabhai and Shri Rathi were two admins, but I am not aware of the
other admins of this WhatsApp group. In the above WhatsApp group members
discussed issues related to pollution, bad debt recovery, increasing the price of
Kraft Paper, non-availability of skilled labour, collective shutting down of
mills, availability and price of local waste paper, GST related queries etc.
I communicated with the above association and other Kraft Paper mill owners
through telephonic talk, email communication, WhatsApp communications in
the group namely “NEWS PAPER MILLS”. …
I have received couple of price hike circulars from GPMA/FIPR but my
company has not received any MOM.”
Case No. 24 of 2017 150

“Now I remember that myself and Shri Rachit Modi were the members of the
WhatsApp group namely “PAPER MILLS – GJ/M.S/C.G.k.” and myself, Shri
Rachit Modi and Shri Ajay Patel were members of the WhatsApp group namely
“Maharashtra paper mills” … . In the above WhatsApp groups members
discussed issues related to pollution, bad debt recovery, increasing the price of
Kraft Paper, non-availability of skilled labour, collective shutting down of
mills, availability and price of local waste paper, GST related queries etc.
After attending GPMA meetings my company increased the price of Kraft
Paper … . The rate implemented by company was not exactly as per GPMA
directions. …”
89.4 When confronted with various price hike circulars of GPMA, Mr. Modi stated that his
company may have increased the price as per the circulars, but he is not sure. When
confronted with various MoMs of GPMA, Mr. Modi admitted that he attended the said
meetings and in the same, it was decided to increase the price of Kraft paper and to
shut-down the mills. He also stated that after the said meetings, OP-48 increased the
prices of Kraft Paper, though not to the same extent and also shut-down the mill as per
GPMA decisions from time to time.
similar to those raised by the other OPs, which have already been dealt with in the
earlier part of the present order. In addition, OP-48 submitted that it was never a
member of GPMA and as such, had no participation in its decision making. It only
attended certain meetings of GPMA as an invitee. Further, the five price hike circulars
of GPMA were recovered by the DG from an e-mail account of OP-48, which is now
defunct and which was not an official or public-facing e-mail ID nor regularly checked
by OP-48 or its principal officers. OP-48 also did not issue any price increase circulars
in consonance with GPMA’s directions or communicated a price increase consistent
with GPMA’s recommendations. Rather, its actual price movements were quite
contrary to GPMA’s decisions. It did not shut-down its mills on certain occasions when
GPMA called upon its members to do so and continued all business transactions even
on dates when its turbines and mill were shut-down.
89.6 In the opinion of the Commission, evidently, Mr. Modi admitted of his participation in
GPMA meetings as well as in the WhatsApp groups “Paper Mills – GJ/MS/CGK” and
Case No. 24 of 2017 151

material waste paper and collective shut-down of mills took place. He also admitted
that OP-48 partially implemented GPMA price hike decisions and, at times,
implemented the collective shut-down decisions of GPMA. In view of the Commission,
such directives were actually issued by GPMA and were known to OP-48 and as such,
its ability to act as an independent competitor in the market stood compromised. Given
that the very knowledge of OP-48 about the competitors’ strategies, compromised its
independence and was, in fact, detrimental to competition, the same was likely to cause
AAEC in the market.
similar to those raised by the other OPs.
90. OP–49 (Bellona Paper Mill Private Limited)
90.1 It is noted from the DG Report that the representative of OP-49, namely, Mr.
Dharmendra Kasundra, Director, attended several meetings of GPMA dated
15.02.2017, 15.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017,
19.08.2017 and 05.12.2017 wherein discussions regarding fixing of prices, shutting
members.
Case No. 24 of 2017 152

90.3 In his statement recorded before the DG, Mr. Dharmendra Kasundra acknowledged as
under:
“… I have attended about 5 to 7 meetings of Gujarat Paper Mills Association

(GPMA), Vapi. Before GPMA meetings I had got telephone calls from Shri
Sunil Agarwal alias Munnabhai, President of GPMA. I do not remember
whether myself or my company has received any communications regarding
GPMA meetings in any other manner except telephone calls.
Yes, I was a member of the WhatsApp group operated by the office bearers of
GPMA, Vapi, namely “PAPER MILLS – GJ/MS/C.G.K.”.
90.4 When confronted with the backup of messages of WhatsApp group “Paper Mills –
GJ/MS/C.G.k.”, Mr. Kasundra stated as under:
“I admit that the members of the group used to discuss about the collective
shut-down of mills, collective increase of price of Kraft Paper and scheduling
meetings to discuss the same.”
90.5 When confronted with various MoMs of GPMA, Mr. Kasundra admitted that collective
shut-down of mills and increase in the price of Kraft paper were discussed in such
meetings which he attended, although he did not implement such GPMA discussions.
90.6 It is however, noted from the DG Report that OP-49’s mill was shut-down from
27.01.2017 to 31.01.2017, 11.02.2017 to 15.02.2017, 11.03.2017 to 15.03.2017,
07.04.2017 to 10.04.2017, 02.05.2017 to 08.05.2017, 01.06.2017 to 06.06.2017,
27.06.2017 to 03.07.2017, which dates match exactly with the shut-down schedule
declared by GPMA. When Mr. Kasundra was asked about the same, he stated that he
does not know why his shut-down dates match with the shut-downs decided by GPMA.
90.7 Thus, evidently, Mr. Kasundra admitted of his participation in GPMA meetings as well
as in the WhatsApp groups “Paper Mills – GJ/MS/CGK” and “NEWS Paper Mills”,
and collective shut-down of mills took place. It is also seen that OP-49 shut-down its
mill on the dates of collective shut-down declared by GPMA.
Case No. 24 of 2017 153

91. OP–50 (Supreme Kraft Private Limited)
91.1 It is noted from the DG Report that the representative of OP-50, namely, Mr. Tejas
Dharia, Director, and/or Mr. Kunal Dharia, his relative, attended several meetings of
GPMA dated 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017,
recipients of the e-mails dated 19.09.2016, 21.11.2016, 06.01.2017, 20.01.2017 and
91.3 In his statements recorded before the DG, Mr. Tejas Dharia acknowledged as under:
“Yes, SKPL is a member of Gujarat Paper Mills Association (GPMA) and

Federation of Indian Paper Recyclers (FIPR) since inception i.e., 2002. I alone
attended the meetings of GPMA/FIPR representing SKPL. SKPL has paid
monthly subscription and corpus fund to GPMA/FIPR. I have attended most of
the meetings of GPMA since 2011 and some meetings of FIPR during 2017. I
have skipped some of the meetings of FIPR during the end of 2017- 18. Last
meeting of FIPR was attended by me during 2017, but I do not remember the
exact date of that meeting.
In GPMA/FIPR meetings Kraft Paper mill owners from Gujarat, Maharashtra,
Northern India, Southern India, and Hyderabad areas attended. In
GPMA/FIPR meetings attendees discussed about demand/supply of Kraft
Paper, price of Kraft Paper, price and availability of waste paper
domestic/imported, GST related common matters, coal price, bad debts
Case No. 24 of 2017 154

recovery, pollution related issues, collective shutting down of mills, export of
Kraft Paper etc.
… SKPL has received above circulars from GPMA/FIPR …
… I am a member of only two WhatsApp groups namely “NEWS PAPER
MILLS” operated by Shri Pankaj Agarwal, President of Northern India Paper
Mills Association and “PAPER MILLS – GJ/MS/C.G.K.” operated by the
office bearers of GPMA/FIPR.
In the above groups members discussed about demand/supply of Kraft Paper,
price of Kraft Paper, price and availability of waste paper domestic/imported,
coal price, collective shutting down of mills, export of Kraft Paper etc. …
I have exchanged information about Waste paper, coal and Dollar rates in the
above WhatsApp groups and I too displayed price hike circular in the above
WhatsApp group operated by GPMA/FIPR office bearers and it was done only
because of the pressure excreted by the office bearers of the above
associations.
We usually sent the email to GPMA about every price increase because GPMA
should know about the price increase by my company.”
91.4 Thus, evidently, Mr. Dharia admitted of his participation in GPMA meetings as well as
and collective shut-down of mills took place. Mr. Dharia also admitted before the DG
that he partially implemented the price hike decisions of GPMA, though he stated that
other factors also accounted for such increases. He also admitted to following certain
collective shut-down directives of GPMA. He also admitted that he had exchanged
information about OP-50’s price hike circulars with GPMA, though under pressure
exerted by the office bearers of GPMA. Some of such e-mails sent by OP-50 to GPMA
regarding price hike, are as follows:
Case No. 24 of 2017 155

91.1 Further, from the e-mail account of OP-50, certain e-mails regarding price increase of
OP-50 to its dealers were recovered (04.03.2017, 23.01.2017 and 23.02.2017). The
price increase communicated through such e-mails partially match with the price
increase declared by GPMA in its meetings. It is also noted from the DG Report that
the mill of OP-50 was shut-down from 27.01.2017 to 31.01.2017, 11.02.2017 to
15.02.2017, 11.03.2017 to 15.03.2017, 05.04.2017 to 09.04.2017, 02.05.2017 to
08.05.2017, 01.06.2017 to 06.06.2017 and 27.06.2017 to 03.07.2017, which dates
coincide with the collective shut-down dates declared by GPMA.
similar to those raised by other OPs, which have been dealt with in the earlier part of
the present order. It also submitted that the price increase and shut-down dates were
decided by it on an independent basis, on basis of various factors.
91.3 In the opinion of the Commission, there is sufficient evidence on record which shows
that the price increase of OP-50 was influenced by GPMA meetings in addition to other
Case No. 24 of 2017 156

factors and that OP-50 implemented the collective shut-down decisions taken by
GPMA.
those raised by the other OPs.
92. OP–51 (Akshat Papers Limited)
92.1 It is noted from the DG Report that the representative of OP-51, namely, Mr. Akshat
Singal, Director attended several meetings of GPMA dated 15.02.2017, 28.03.2017,
92.3 In his statement recorded before the DG, Mr. Akshat Singal stated as under:
“… I have attended few meetings of Gujarat Paper Mills Association

(GPMA)/Federation of Indian Paper Recyclers (FIPR) in last two three years.
In the above meetings attendees discussed about pollution issues, how to
reduce the consumption of water, costing of Kraft Paper, price of OCC/waste
paper, collective shutting down of mills etc.
Since our family friends/relatives are attached with GPMA and they also have
Kraft Paper mills, they pressurized my company to attend the meetings of
GPMA/FIPR. Since all the paper manufactures know each other and have
Case No. 24 of 2017 157

social and family relations, I have attended few meetings on their insistence
just to save our face. …
I was a member of two WhatsApp groups namely “NEWS PAPER MILLS” and
“PAPER MILLS – GJ/MS/CGK”. I have been added in the said WhatsApp
group by their admins. I was not the admin in any of these groups. I am not
able to recall who added me in NEWS PAPER MILLS however, Shri Nimish
Shah added me as a member in PAPER MILLS – GJ/MS/CGK. I exited from
the said groups but the admins again added me and I finally exited the group
around one year back. The members used to update about the OCC price
scenario, current news regarding paper industry, schedule of association
meetings, decision of the association regarding price hike and shut-down of
mills. However, these decisions, as explained by me earlier never affected the
working of my company as my company never shut-down the mill as per the
directions of GPMA/FIPR nor increased the price of Kraft paper as our major
production for the last three years has remain Kraft Board. Kraft Board has
different customers and different price. I have never been active in the
discussions of WhatsApp group and may have shared condolences and
greetings only.
I have attended few meetings of GPMA as explained by me earlier. The
meetings were attended on the insistence of family friends and relatives who
are part of GPMA and to keep intact the social relations with them. My
company has never hiked the price or shut-down the mill as per the directions
of GPMA/FIPR. Rather my company’s product is different. …”
92.4 In its reply to the DG Report, OP-51 stated that it was declared a sick company on
20.09.2006 and was undergoing proceedings before the Board of Industrial and
Financial Reconstruction (‘BIFR’) vide Case No. 282/2004. It was facing deep financial
crunch and only after arranging funds from relatives and friends could OP-51 be
deregistered from BIFR on 11.02.2013. It stated that any allegation of following any
instructions of any association, or being part of any anti-competitive activity against
OP-51 is erroneous as, because of its small size and increasing bank liabilities towards
interest, it could not have afforded any shut-down. Mr. Akshat Singal became part of
GPMA meetings as well as part of WhatsApp groups simply for maintaining social
relations with family and friends. He did not share any messages in such groups. The
company mostly manufactures board paper and the manufacture of Kraft paper is very
negligible. Profits generated, if any, are through trading of grey fabrics.
Case No. 24 of 2017 158

92.5 In the opinion of the Commission, evidently, Mr. Singal was a participant in certain
GPMA meetings as well as was a member of the WhatsApp groups “Paper Mills –
OP-51 also received certain e-mails regarding price increase and collective shut-down
from GPMA. The very knowledge of OP-51 about competitors’ strategies as shared in
GPMA meetings and WhatsApp groups, compromised its independence and was, in
fact, detrimental to competition and was likely to cause AAEC in the market. Its
financial health also does not give it an excuse to indulge in anti-competitive activities.
Kraft paper and collective shut-down of paper mills. Such conduct of OP-51 amounts to
93. OP–52 (Aricon Papers Private Limited)
93.1 It is noted from the DG Report that representatives of OP-52, namely, Mr. Hitesh Patel,
Former Director and Mr. Mukesh Likhiya, Director, attended several meetings of
GPMA dated 15.02.2017, 15.03.2017, 24.04.2017, 05.05.2017, 02.06.2017, 05.12.2017
etc., were held.
members.
93.3 In his statement recorded before the DG, Mr. Hitesh Patel either kept mum or gave very
evasive answers to many questions asked of him. However, when confronted by the DG
with certain evidences available on record, he acknowledged as under:
“I attended one meeting of Kraft Paper Manufacturers at Morbi and another

meeting of Kraft Paper Manufacturers at Mumbai, both in 2017. Name of the
Association I do not remember. …
Case No. 24 of 2017 159

… after looking at the backup I confirm that I was the member of the said
WhatsApp group and removed on 13.11.2017. I am not able to remember what
has been discussed in the said WhatsApp group.
… I am able to recollect that in the calendar year 2017 and 2018, only once or
twice my company followed the decisions of GPMA/FIPR regarding collective
shut-down of mills, but most of the times my company did not follow their
decision despite attending the meetings by me. APPL did not increase the price
of Kraft paper exactly on the same date as directed by GPMA/FIPR, however,
APPL increased the price of Kraft paper after some time and after taking its
customers into consideration.”
93.4 Mr. Patel also lied on oath about his date of resignation from the Directorship of OP-52,
discussion in GPMA meetings, his knowledge about GPMA etc.
93.5 It is also noted from the DG Report that Mr. Hitesh Patel had shared the monthly
production figures of OP-52 with GPMA in the meeting held on 25.07.2017. The
manufacturing plant of OP-52 was also shut-down from 06.04.2017 to 11.04.2017,
06.06.2017 to 07.06.2017 and 28.06.2017 to 03.07.2017, which dates partially match
with the shut-down dates 05.04.2017 to 09.04.2017, 01.06.2017 to 06.06.2017 and
28.06.2017 to 03.07.2017 declared by GPMA in the meetings attended by Mr. Hitesh
Patel. Mr. Patel even admitted in his statement that OP-52 followed the shut-down
directions of GPMA on certain occasions. It is also noted from the DG Report that Mr.
Hitesh Patel as well as the other Director Mr. Mukesh Likhiya were members of
WhatsApp group “Paper Mills – GJ/MS/CGK”.
Case No. 24 of 2017 160

94. OP–53 (Karan Paper Mill)
94.1 It is noted from the DG Report that the representative of OP-53, namely, Mr. Prahlad
Patel, Trustee (who was also the Trustee of OP-39), attended several meetings of
GPMA dated 15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017,
05.05.2017, 02.06.2017, 25.07.2017, 19.08.2017, 05.12.2017 and 25.12.2017, wherein
recipients of the e-mails dated 30.01.2013, 20.03.2013. 19.06.2013, 29.08.2013,
13.02.2014, 09.09.2016, 06.01.2017, 30.01.2017, 20.02.2017, 10-11.03.2017 and
94.3 In his statement recorded before the DG, Mr. Prahlad Patel acknowledged as under:
“… I have attended 6 or 7 meetings of Gujarat Paper Mills Association

(GPMA) representing KPM and MPM. I have also attended one meeting of
Federation of Indian Paper Recyclers (FIPR) in 2017.
I was a member of the WhatsApp Group namely “Paper Mills – GJ/MS/CG”
…
In GPMA/FIPR meetings in which I have attended, attendees discussed about
increasing the price of Kraft Paper, price of waste paper, technical issues,
market scenario of Kraft Paper, environmental issues, pollution issues, fuel
related matters, processing related matters and shutting down of mills. In the
WhatsApp group namely “Paper Mills – GJ/MS/C.G.k” members discussed
issues related to price of Kraft Paper, waste paper, technical issues, pollution
related matters. In the said group, members also shared their price of Kraft
Paper. I also put thumbs up in supporting the increase of Price of Kraft @
Re.1250 PMT w.e.f. 22.11.2017 announced by Shri Sunil Agarwal alias Munna
Bhai, President of GPMA and MD of Shree Gajanan Papers & Boards Pvt.
Ltd., Vapi.
KPM has received couple of MOMs from GPMA and copies of seven of them
have been submitted to your office along with firm’s reply dated 21.08.2018.
KPM also partially implemented the decisions of GPMA/FIPR regarding price
Case No. 24 of 2017 161

hike and shutting down of mills. During 27th to 31st January 2017 GPMA has
decided to shut-down the mills collectively and KPM also implemented the
same.
… GPMA/FIPR has formed a monitoring committee to ensure that all Kraft
Paper Mills strictly implemented the collective shut-down decision. As far as I
know nobody from the above monitoring committee has ever visited KPM to
monitor the collective shut-down.
I admit that my name was included in the members of the first Governing body
of the federation and included as Vice President in the first office bearers of
the Federation. However, in April 2019 I resigned from the form the said post
of FIPR w.e.f. 11.04.2019.”
94.4 When confronted with various MoMs of GPMA, Mr. Patel admitted of his participation
in the said meetings and confirmed that OP-53, at times, partially implemented the
decisions regarding price hike and collective shut-down taken therein. When Mr. Patel
was confronted with some of the e-mails received by OP-53 from GPMA, he admitted
the receipt of such e-mails and at times partially implemented the decisions of GPMA
regarding price hike and collective shut-down of plants, as communicated therein.
94.5 Thus, evidently, Mr. Prahlad Patel admitted of his participation in GPMA meetings as
paper and collective shut-down of mills took place. He also admitted that OP-53
implemented GPMA price hike decisions, although not to the same extent as decided.
Similarly, he also admitted to have partially implemented the collective shut-down
decisions of GPMA.
Case No. 24 of 2017 162

95. OP–54 (Revival Paper Mills Private Limited)
95.1 It is noted from the DG Report that the representative of OP-54, namely, Mr. Kunal
Dharia, Director, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017, 25.07.2017, 22.11.2017,
95.2 OP-54 was also named by GPMA as one of its members. Further, it was also one of the
95.3 In his statement recorded before the DG, Mr. Kunal Dharia acknowledged as under:
“Yes, RPMPL is a registered member of Gujarat Paper Mills Association

(GPMA) since 2010 and Federation of Indian Paper Recyclers (FIPR) since
the second half of 2017. Representing RPMPL I have attended 12 – 15
meetings of GPMA/FIPR since 2017. RPMPL also paid membership fees to
GPMA and FIPR. I have also paid FIPR deposit to the association, however,
the same has been refunded to RPMPL because some of the members do not
paid the same.
During the meetings of GPMA/FIPR attendees discussed about demonetization
issues, GST related issues, Pollution related issues, current market scenario of
Kraft Paper, price of finished product and waste paper (both
domestic/imported), collective shut-down of mills, factory safety issues etc.
Yes, I was member of one WhatsApp group namely “PAPER MILLS –
GJ/MS/C.G.k.” operated by the office bearers of GPMA since 2017. …
In the above WhatsApp group members discussed about GST related issues,
Pollution related issues, current market scenario of Kraft Paper, price of
finished product and waste paper (both domestic/imported), collective shut-
down of mills, factory safety issues etc.
Case No. 24 of 2017 163

RPMPL has received a total of 5 circulars from GPMA/FIPR since 2016, …
Yes, I was a member of the aforesaid WhatsApp group also (NEWS) …
I agreed that RPMPL shut-down its manufacturing plant during the above
period as per the directions of GPMA. …”
95.4 When confronted with various MoMs of GPMA meetings, Mr. Dharia admitted to his
participation in the said meetings and when confronted with certain e-mails received
from GPMA, Mr. Dharia acknowledged the receipt of the said e-mails. He admitted
that he partially implemented the price hike decisions taken in GPMA meetings and
communicated through e-mails. He also admitted to following the collective shut-down
directives of GPMA issued in such meetings and through e-mails. It is also noted from
the DG Report that the mill of OP-54 was shut-down during the period 27.01.2017 to
31.01.2017, 11.02.2017 to 15.02.2017, 11.03.2017 to 15.03.2017, 05.04.2017 to
09.04.2017, 02.05.2017 to 08.05.2017, 01.06.2017 to 06.06.2017 and 27.06.2017 to
03.07.2017, which dates coincide with the collective shut-down dates of GPMA.
95.5 Mr. Dharia also stated that he attended certain meetings on behalf of OP-50 along with
OP-54. Mr. Dharia also admitted to be being a part of the WhatsApp groups “Paper
place. From OP-54’s e-mail account, various incriminating e-mails received from
GPMA and competitors of OP-54 were also recovered.
similar to those raised by other OPs, which have been dealt with in the earlier parts of
the present order. It also submitted that it does not manufacture Kraft paper but rather is
a manufacturer of Kraft board, which product is different from Kraft paper. Hence, it
was not a part of the alleged cartel and has been wrongly implicated by the DG.
95.7 In the opinion of the Commission, there is sufficient evidence on record, apart from
categorical admission on part of Mr. Kunal Dharia, which shows that the price increase
of OP-54 was influenced by GPMA meetings in addition to other factors and that OP-
54 implemented the collective shut-down decisions taken by GPMA.
Case No. 24 of 2017 164

similar to those raised by the other OPs.
96. OP–55 (Apna Paper Mills Private Limited)
96.1 It is noted from the DG Report that representatives of OP-55, namely, Mr. Ismail
Quereshi, Director and Mr. Imran Quereshi, attended several meetings of GPMA dated
15.02.2017, 15.03.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017, 02.06.2017,
members.
96.3 In his statement recorded before the DG, Mr. Ismail Quereshi acknowledged as under:
“Yes, APMP is a member of Gujarat Paper Mills Association (GPMA) since

inception. But my company is not a member of Federation of Indian Paper
Recyclers (FIPR). My company also paid annual membership fee to GPMA,
but not paid any FIPR contribution.
I have attended 4-5 meetings of GPMA and 1-2 meetings of FIPR since 2017. I
have attended the last meeting of FIPR during the initial months of 2018.
In GPMA/FIPR meetings attendees discussed about the increase in the input
cost and the ways to increase the price of Kraft Paper. Attendees also
discussed about collective shut-down of mills due to shortage in orders of Kraft
Paper, discussed about the price of waste paper and formation of FIPR,
pollution related issues, GST related issues etc.
Case No. 24 of 2017 165

Yes, I was also a member of the WhatsApp group operated by GPMA office
bearers namely “PAPER MILLS - GJ/MS/C.G.k.” but myself or my company
is/was not a member of any other WhatsApp group operated by association of
Kraft Paper Manufacturers.
I recollect that I was also a member of the said WhatsApp group (NEWS).”
96.4 From Mr. Quereshi’s e-mail account, various incriminating e-mails were recovered.
When he was confronted with the same, he admitted to the receipt of such price hike
circulars from GPMA and also admitted that OP-55 increased its prices of Kraft paper
as per GPMA circulars which can also be seen from the price hike circulars of OP-55
sent via e-mail to its dealers. However, he also stated other reasons for such price hike
by OP-55. When confronted with various MoMs of GPMA, Mr. Quereshi admitted to
being a part of such meetings and also acknowledged that he shut-down his plant as per
GPMA decisions. He also admitted that OP-55 increased the price as per GPMA
decisions. However, he stated that there were some other reasons also for such price
hike and price hikes were not exactly implemented as per GPMA decisions.
96.5 Thus, evidently, Mr. Quereshi admitted of his participation in GPMA meetings as well
and collective shut-down of mills took place. Mr. Quereshi also admitted that he
partially implemented the price hike decisions of GPMA, though he stated that other
factors also accounted for such increases. He also admitted having followed certain
collective shut-down directives of GPMA.
96.6 In its reply to the DG Report, OP-55 stated that for the last 10 years, it has never made
any profits and in fact in 2021-22, it sold all land and plant and machines to Gajanan
Paper and Boards Pvt. Ltd. Further, earlier too, OP-55 was registered with BIFR vide
Case No. 353/2001. Hence, it has never benefitted from any syndication to raise prices
and is not a part of the same.
96.7 In the opinion of the Commission, there is sufficient evidence on record which shows
that the price increase of OP-55 was influenced by GPMA meetings in addition to other
factors and that OP-55 implemented the collective shut-down decisions taken by
GPMA. Its financial health does not give it an excuse to indulge into anti-competitive
activities.
Case No. 24 of 2017 166

97. OP–56 (Sachin Paper Mills Private Limited)
97.1 It is noted from the DG Report that the representative of OP-56 namely Mr. Naresh
Borana, Director, attended several meetings of GPMA dated 15.02.2017, 28.03.2017,
97.3 In his statement recorded before the DG, Mr. Naresh Borana acknowledged as under:
“My company is a member of Gujarat Paper Mills Association (GPMA).

SPMPL has paid membership fee of Rs. 36,999/- to GPMA upto 2016-17 and
also paid Rs.37,754/- for the year 2015-16. SPMPL has not paid any
membership fee since 2017-18 till date, but not resigned from its membership.
Now I recollect that SPMPL has paid the above membership fee to FIPR for
the period 2017.18 on 30.12.2017 and my company is a member of FIPR.
I have attended around 4 to 5 meetings of GPMA and not attended any
meetings of FIPR. Voluntarily stated I have attended 2-3 meetings of GPMA
and 2-3 meetings of FIPR.
In GPMA Meetings attendees discussed about price of waste paper & its
quality, pollution related matters, prevailing market scenario of Kraft Paper,
cost of production, increase the price of Kraft Paper by all paper mills and
how to reduce the production cost.
I was a member of only one WhatsApp group namely “PAPER MILLS –
GJ/MS/C.G.”, …
Case No. 24 of 2017 167

My company communicated the price hike to its customers through telephone
only and no communication was affected through email.
In the above WhatsApp group members used to discuss about the price of
waste paper, pollution related matters, present market scenario of Kraft
Paper/waste paper (domestic/imported), cost of production, increasing the
price of Kraft Paper.
After seeing the backup of the said group (NEWS) as shown to me i.e., Exhibit
8 colly, I am able to recollect that I was a member of the said group. However,
I am not able to remember about the discussion taking place in the said
group.”
97.4 When confronted with certain e-mails recovered from his account containing GPMA
MoMs, circulars etc., Mr. Borana also admitted that collective shut-down of Kraft
paper mills was also discussed in GPMA meetings. He also admitted that he partially
implemented the price hike and shut-down directives of GPMA. It is noted from the
DG Report that the shut-down dates of OP-56 partially match the shut-down dates
declared by GPMA.
97.5 When confronted with the backup of messages posted on WhatsApp group “Paper
Mills – GJ/MS/CGK” and asked about the message dated 22.11.2017 at 16:14 posted
by Mr. Sunil Aggarwal, President of GPMA, regarding price increase, to which Mr.
Borana had posted a thumbs up at 18:58, Mr. Borana admitted that his company
supported the price hike decision taken by FIPR. He stated that his company was a
member of FIPR and hence, he was forced to support the decisions of the association.
97.6 Similarly, when asked about the message dated 05.12.2017 at 13:06 posted by Mr.
Sunil Aggarwal, President of GPMA, regarding price increase, to which Mr. Borana
posted a thumbs up at 13:24, Mr. Borana admitted that his company supported the price
hike decision taken by FIPR. He stated that his company was a member of FIPR and
hence, he was forced to support the decisions of the association.
97.7 Screenshots of such messages are as under:
Case No. 24 of 2017 168

97.8 Thus, evidently, Mr. Borana admitted of his participation in GPMA meetings as well as
and collective shut-down of mills took place. Mr. Borana also admitted before the DG
that he partially implemented the price hike decisions and collective shut-down
decisions of GPMA. His concurrence to price increase decisions of GPMA in the
WhatsApp group “Paper Mills – GJ/MS/CGK” can also be seen.
Case No. 24 of 2017 169

98. OP–57 [Maheshwari Logistics Limited (Paper Division) (Daman Ganga Paper
Limited)]
98.1 It is noted from the DG Report that representatives of OP-57, namely, Mr. Neeraj
Maheshwari, Chief Executive Officer and Mr. Vipul Vashi and Mr. Amit Maheshwari,
Directors, attended several meetings of GPMA dated 15.02.2017, 15.03.2017,
28.03.2017, 07.04.2017, 24.04.2017, 02.06.2017, 25.07.2017, 19.08.2017, 22.11.2017,
21.11.2016, 20.01.2017 and 30.01.2017 sent by GPMA to its members.
98.3 In his statement recorded before the DG, Mr. Neeraj Maheshwari acknowledged as
under:
“… I used to attend most of the meetings of Gujarat Paper Mills Association

(GPMA) and Federation of Indian Paper Recyclers (FIPR). On certain
occasions Shri Vipul Vashi, Director and Shri Amit Maheshwari, Director have
also attended the above association meetings.
… MLL has paid old dues of membership fees for the period 2015-16 in respect
of Damanganga Recycle Resources LLP to GPMA. …
I have attended 5-10 (Appx.) meetings of GPMA/FIPR. Attendees of the above
association meetings discussed about raw materials including waste paper,
electricity and coal, government policies, GST matter, demonetization related
issues, price of Kraft Paper, shutting down of mills etc.
Yes, I was a member of WhatsApp groups namely “Paper Mills –
GJ/MS/CGK/Paper Mills - GJ/MS/CG” and “NEWS PAPER MILLS”. … In
the above WhatsApp groups members discussed about price of raw materials
including waste paper, electricity & coal, government policies, GST matter,
demonetization related issues, price of Kraft Paper, shutting down of mills etc.
However, I never exchanged any message in the above WhatsApp group. I was
also a member of the WhatsApp group namely “paper mill kitty” in this group
members used to discuss about personal matters just for fun.
In the said WhatsApp groups two other directors Shri Amit Maheshwari and
Shri Vipul Vashi were also members.
So far as I can remember MLL has received price circulars of GPMA during
January 2016 to April 2018 …
Case No. 24 of 2017 170

I was aware that the said acts are ethically wrong but I was not aware that
said acts are violative of provisions of Competition Act. I have done the above
acts due to ignorance of Law I request you to kindly take a lenient view against
my company and me. I assure you that in future I will not participate in such
anti-competitive acts.”
98.4 Several MoMs and price hike circulars of GPMA were also recovered from the e-mail
account of Mr. Maheshwari. Further, Mr. Maheshwari also submitted that OP-57 was
forced to implement GPMA decisions of shut-down due to threat from its office-bearers
and OP-57 had also filed a complaint against the office-bearers of GPMA at local
Police Station, Nanapondha. It is also noted from the statement of Mr. Maheshwari that
he acknowledged that OP-57 had partially implemented the price hike decisions of
GPMA, although other factors also contributed to such increase.
98.5 When confronted with MoM of GPMA dated 15.03.2017 in which Managing
Committee/General Body of FIPR was formed where name of Mr. Neeraj Maheshwari
was also included and he proposed registration of the Federation, Mr. Maheshwari
stated that “I admit that I have attended the above meeting along with Shri Vipul Vashi
and Shri Amit Maheshwari. In the said meeting it was decided to increase the price of
Kraft Paper by Rs. 2. My company has partially implemented the above price hike
decision of GPMA. MLL has also taken into consideration present market scenario
including price hike of waste paper. My name was included in the above committee.
Later I resigned for the above committee because Association/Federation was
supporting the decision of price hike as well as collective shutting down of mills, which
I was not in favour. … I also admit that during the said meeting I propose for the
registration of Federation so that we can properly represent to the government
authorities.”
98.6 In this regard, the DG has noted that Mr. Maheshwari resigned from the said post only
eight months after the DG had served notice to OP-57 in the present matter. Further, the
DG has noted that the shut-down dates of OP-57 partially match the dates of shut-down
declared by GPMA. The DG has also noted that though Mr. Maheshwari claimed that
OP-57 only paid the old dues of Damanganga to GPMA for 2015-16 and made no
further contribution, as per the receipts filed by OP-57 issued by GPMA on 23.01.2017
for the membership fee of 2015-16, in addition to ₹50,000 membership fee received
Case No. 24 of 2017 171

from OP-57, OP-57 also paid ₹99,120 and ₹41,300 on 03.01.2018 as special
contribution to FIPR.
98.7 The DG also noted that OP-57 was incorporated in the year 2006. It started
manufacturing Kraft Paper in October 2015 under the plant and equipment operating
agreement with Damanganga Paper Ltd. In March 2018, OP-57 purchased the plant and
machinery from Damanganga.
similar to those raised by the other OPs in the matter. OP-57 also submitted that it
cannot be held to be a part of the cartel before 2015 as it was not in the business of
manufacture of Kraft paper that time. It became associated with GPMA only because of
business reasons and it was not a member of GPMA. As such, it was not bound to
follow the decisions of GPMA. In a letter dated 21.01.2017 addressed by Mr. Neeraj
Maheshwari to GPMA, he had explicitly stated that “we are not bound to accept any
decision taken in GPMA meetings and we do not accept your decision regarding the
shut-down as taken in previous meetings”. In fact, vide letter dated 26.01.2017, OP-57
had also registered a complaint with the local police station at Vapi with regard to the
unsolicited interference and objections raised by GPMA regarding the business
operations of OP-57. In reply, the police department asked OP-57 to keep the paper
mill shut in order to maintain peace in the area. Further, OP-57 submitted that no
AAEC was caused as a result of the activities of OP-57. Rather, if price increase was
not done by the Kraft paper mills, the very existence of several paper mills would be in
jeopardy and lead to their closure on a large scale, which would have led to disruption
in the supply of Kraft paper and would be detrimental to the interests of consumers.
98.9 In the opinion of the Commission, Mr. Neeraj Maheshwari admitted to his and his
colleagues’ participation in GPMA meetings as well as in the WhatsApp groups “Paper
place. He also admitted that OP-57 partially implemented GPMA price hike decisions
although other factors also contributed to the same. Similarly, he admitted to have
implemented the collective shut-down decisions of GPMA, even though he stated that
OP-57 was forced to do the same and OP-57 had objected to the same by even filing a
Case No. 24 of 2017 172

police complaint against GPMA. It is also noted from the DG Report that, though OP-
57 claims that it was averse to the decisions taken in GPMA/FIPR meetings and was
objecting to the same, it made financial contributions to FIPR in 2018 and its CEO Mr.
Neeraj Maheshwari was also a part of the Managing Committee/General Body of FIPR
for two years. The very knowledge of OP-57 about competitors’ strategies as shared in
GPMA meetings and WhatsApp groups, compromised its independence and was, in
fact, detrimental to competition and was likely to cause AAEC in the market. Further,
OP-57’s financial health does not give it an excuse to indulge in anti-competitive
activities.
99. OP–58 (Sayaji Paper Private Limited)
99.1 It is noted from the DG Report that the representative of OP-58, namely, Mr. Ramesh
Patel, Director, Mr. Hasmukh Patel and Mr. Nandibhai Patel, attended several meetings
of GPMA dated 15.02.2017, 28.03.2017, 07.04.2017, 24.04.2017, 05.05.2017,
fixing of prices, shutting down of mills, etc., were held. OP-58 was also named by
GPMA as one of its members.
99.2 In his statement recorded before the DG, Mr. Ramesh Patel acknowledged as under:
Case No. 24 of 2017 173

“… I have attended 4-5 meetings of Gujarat Paper Mills Association (GPMA),
but I have not attended any meeting of Federation of Indian Paper Recyclers
(FIPR). I have paid Rs. 20,000 towards hotel expenditure of GPMA for the
meeting held in Vadodara during 2017.
In the above association meeting attendees discussed about increasing the
price of Kraft paper, price of domestic/imported waste paper, technical issues,
shutting down of mills, pollution related issues, GST matters etc.
Yes, I was a member of WhatsApp groups namely “Paper Mills – GJ/MS/CG
/Paper Mills – GJ/MS/C.G.k ” and “NEWS PAPER MILLS”. In the said
WhatsApp groups members discussed about increasing the price of Kraft
paper, price of domestic/imported waste paper, shutting down of mills etc.
Some of the members also share their price of Kraft Paper in the said
WhatsApp groups.
SPPL communicates to its customers regarding price hike of Kraft Paper and
Kraft Board through telephone, WhatsApp and email.
Sometimes SPPL has received communication from GPMA/FIPR regarding
price hike of Kraft Paper/Kraft Board, but has not received any
communication/MOM/price hike circulars through email or post.
Yes, these are the same WhatsApp groups of which I was a member. On certain
occasions I have also supported GPMA/FIPR price hike decisions by putting
thumbs up due to the pressure exerted by the office bearers of GPMA/FIPR.
However, SPPL implemented the price hike belatedly only.”
99.3 When confronted with various MoMs of GPMA recovered from OP-58’s e-mail
account, Mr. Patel admitted that he had attended the said meetings and decisions
regarding price hike and collective shut-down were taken therein. He also admitted that
OP-58 had shut its manufacturing plant, fully or partially, as per the decisions of
GPMA but also stated certain other reasons for the said shut-downs. Regarding price
hike, he stated that OP-58 also increased the price of Kraft Paper/Kraft Board as per
GPMA decisions but stated that it implemented the same on a later date due to shortage
of orders.
99.4 Thus, evidently, Mr. Ramesh Patel admitted of his participation in GPMA meetings as
paper and collective shut-down of mills took place. He also admitted that he supported
such price hike decisions communicated in the WhatsApp groups by putting thumbs up.
Case No. 24 of 2017 174

He also stated that OP-58 implemented GPMA price hike decisions, however, at a later
date. Similarly, he also admitted to have implemented the collective shut-down
decisions of GPMA, fully or partially, though other factors were also stated to have
contributed to the same.
100. OP–59 (Sankalp Paper Industries Private Limited)
100.1 It is noted from the DG Report that the representative of OP-59, namely, Mr. Amit
Tulsian, attended meetings of GPMA dated 15.02.2017, 28.03.2017 and 07.04.2017,
recipients of the e-mails dated 21.11.2016, 06.01.2017, 20.01.2017 and 30.01.2017 sent
by GPMA to its members.
100.3 In his statement recorded before the DG, Mr. Amit Tulsian acknowledged as under:
“SPIP was a member of Gujarat Paper Mills Association (GPMA). But SPIP
was not a member of Federation of Indian Paper Recycles (FIPR).
Representing SPIP I have attended only two meetings of GPMA since January
2017, which were held at Mumbai. None of the other directors of SPIP
attended any meetings of GPMA/FIPR.
Case No. 24 of 2017 175

As far as I know, SPIP has paid Annual Membership Fee of Rs.18,000/- to
Rs.20,000/- (Appx.) to GPMA till 2016.
In GPMA meetings in which I have attended, attendees used to discuss about
Pollution Issues, Debt Recovery, Increasing the price of Kraft Paper, Price of
waste paper and its availability both local/imported, collective shutting down
of mills.
After seeing the above (“PAPER MILLS – GJ/MS/CGK/PAPER MILLS –
GJ/MS/CG”) I remember that myself and Shri Sanat Sushilkumar Tulsian were
also members of the above WhatsApp group operated by GPMA office
bearers.”
100.4 When confronted with the MoMs of GPMA meetings he had attended, Mr. Tulsian
admitted that decisions regarding price hike and collective shut-down were taken
therein. He also admitted that OP-59 had shut its manufacturing plant as per the
decisions of GPMA, fully or partially, but also stated certain other reasons for the said
shut-down. Regarding price hike, he stated that OP-59 also increased the price of Kraft
paper/Kraft board as per GPMA decisions but stated that it implemented the same not
exactly and also for other reasons. Mr. Tulsian also admitted to have implemented
certain other collective shut-down and price hike directives of GPMA.
100.5 Thus, evidently, Mr. Tulsian admitted to his participation in GPMA meetings as well
as in the WhatsApp group “Paper Mills – GJ/MS/CGK”, wherein discussions regarding
mills took place. He also stated that OP-59 implemented GPMA price hike decisions,
though only partially. Similarly, he also admitted to have implemented the collective
shut-down decisions of GPMA, fully or partially, though other factors were also stated
to have contributed to the same.
Case No. 24 of 2017 176

101. OP–60 (Lucky Star Paper Mills)
101.1 It is noted from the DG Report that representatives of OP-60, namely, Mr.
Noormohammed V. Shaikh and Mr. Abudulla Shaikh, Partners, attended meetings of
GPMA dated 15.02.2017, 07.04.2017 and 05.04.2018, wherein discussions regarding
101.2 In his statement recorded before the DG, Mr. Noormohammed Shaikh acknowledged
as under:
“… I have attended two meetings of Gujarat Paper Mills Association (GPMA).

I have not attended any meeting of Federation of Indian paper Recyclers
(FIPR). I have also paid Rs 2000/-(appx.) each on two occasions being the
hotel rent for GPMA meetings held in Mumbai. Apart from the above LSPM
has not paid any other payment towards membership fee of GPMA/FIPR or
onetime contribution or FIPR contribution. Now I recollect that LSPM has
issued cheque for Rs 1 Lakh (appx.) towards one time contribution to GPMA,
but the cheque was not enchased due to shortage of funds
In GPMA meetings members used to discuss issues such as waste paper
shortage and its increasing cost, increasing the price of Kraft Paper, technical
issues, pollution related issues, collective shutting down of the mills, input cost
cutting etc.
… I was a member of the WhatsApp groups namely “Paper Mills-
GJ/MS/C.G.K/Paper Mills-GJ/MS/CG” and “Maharashtra paper mills”. Sh.
Abdullah Sheikh other partner was also a member of the WhatsApp group
namely “Paper Mills-GJ/MS/C.G.K/Paper Mills-GJ/MS/CG”. In the said
groups members used to share messages regarding the decisions of GPMA
meeting, increasing the price of Kraft Paper, collective shutting down of mills,
input cost cutting etc. Members also shared their revised price of Kraft paper
in the said groups. I have also supported the decision of certain mills
regarding price hike by putting “ok” message on the said groups.
LSPM send email messages or telephonic conversation to its customers
regarding price hike of Kraft Paper.
LSPM has not received any communication/MOM/circulars from GPMA/FIPR
regarding the price hike of the Kraft paper. However, myself and the other
partner used to know GPMA decisions regarding price increase of Kraft paper
through the WhatsApp groups stated by me …
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I admit that these are the same WhatsApp groups of which myself and Sh.
Abdullah V.M. Sheikh were members.
LSPM increased the price of the Kraft paper as decided by GPMA, however,
LSPM has not increased the price of Kraft paper on the dates decided by
GPMA, but LSPM increased the price of the Kraft paper after a gap of 10-15
days. LSPM also did not increase the price of Kraft paper exactly as decided
by GPMA. If GPMA decided to increase the price of Kraft paper by Re. 1-2, my
firm may have increased Rs.0.5 to Re.1/-.
I admit that LSPM has shut its manufacturing plant on the aforesaid dates as
decided by GPMA. However, LSPM was forced to shut its manufacturing plant
during the above periods due to the pressure and threats from the office
bearers of GPMA. GPMA also used to send its representative to check whether
LSPM has also shut its manufacturing plant during the scheduled shut period.
However, LSPM has done its maintenance work during the above shut
periods.”
101.3 When confronted with the MoMs of GPMA meetings he had attended, Mr. Shaikh
admitted that OP-60 had increased the price of Kraft paper as per GPMA decisions but
stated that it implemented the same on a later date and not to the same extent. Further,
Mr. Shaikh also admitted that he shut the manufacturing plant of OP-60 as per the
decisions of GPMA, fully or partially, although he stated that he was forced to do so
owing to the pressure and threats from the office-bearers of GPMA. He said that
GPMA used to send its representatives to check whether OP-60 has shut its
manufacturing plant during the scheduled shut period.
101.4 Mr. Shaikh also admitted that he and Mr. Abudulla Shaikh are active members of
WhatsApp groups of Maharashtra Paper Mills and “Paper Mills – GJ/MS/CGK”,
and collective shut-down of mills took place. It is also noted from the DG Report that
GPMA had decided to shut-down the mills of its members collectively from 27.01.2017
to 31.01.2017 (5 days), 11.02.2017 to 15.02.2017 (5 days), 11.03.2017 to 15.03.2017 (5
days), 05.04.2017 to 09.04.2017 (5 days), 02.05.2017 to 08.05.2017 (7 days),
01.06.2017 to 06.06.2017 (6 days) and 01.07.2017 to 03.07.2017 (3 days) and, as
revealed from the scanned copy of RG-1 Register of OP-60, OP-60 had also shut-down
its manufacturing plant during 26.01.2017, 30.01.2017 and 31.01.2017 (3 days),
13.02.2017 to 15.02.2017 (3 days), 13.03.2017 to 15.03.2017 (3 days), 06.04.2017 to
10.04.2017 (5 days), 02.05.2017 to 07.05.2017 (6 days), 01.06.2017 to 05.06.2017 (5
Case No. 24 of 2017 178

days) and 01.07.2017 to 03.07.2017 (3 days), which dates partially match with the shut-
downs declared by GPMA.
102. OP–61 [Gayatri Shakti Paper and Boards Limited (Unit – II)]
102.1 It is noted from the DG Report that representatives of OP-61, namely, Mr. Tonny D.
Pereira, Manager, Mr. Nikhar G. Agarwal, Director, Mr. Mahesh Jalan, Executive
Director and Mr. B.K. Dayama, attended several meetings of GPMA dated 15.02.2017,
102.2 In his statement recorded before the DG, Mr. Tonny Pereira acknowledged as under:
“GPBL is a member of Gujarat Paper Mills Association (GPMA) since 2015

(Appx.). I have attended maximum three meetings of GPMA. I have attended
the last meeting of GPMA approximately one year back at Hotel Westin,
Mumbai. Shri Nikhar Agarwal, Director also attended some of the meetings of
GPMA and he also attended one of the meetings of GPMA along with me.
In GPMA meetings attendees discussed about shortage of waste paper,
purchase of waste paper by decreasing the price, collective increase in the
price of Kraft Paper. …
Once I was a member of WhatsApp group namely Gujarat Paper Mills apart
from that I have never been a member of any other WhatsApp group.
Now I recollect that in some of GPMA meetings in which I have attended,
attendees discussed about collective shut-down. But I could not specify the
dates of those meetings in which the above matter was discussed.”
102.3 When confronted with the backup of certain messages exchanged in the WhatsApp
Group “NEWS Paper Mills” of which Mr. Pereira was also a member, he stated that
Case No. 24 of 2017 179

such messages were exchanged by some of the paper mills of North India to inform the
increasing trend of waste paper; as a result, the other paper mills got to know about the
trend of the market so that they could take the decision about the price. With respect to
WhatsApp Group “Paper Mills – GJ/MS/C.G.K” also, Mr. Pereira stated that “In the
said group members also exchanged messages regarding price of Kraft Paper/waste
paper”.
102.4 Though Mr. Pereira initially stated in his deposition that collective shut-down of mills
was not discussed in GPMA meetings, when he was confronted with certain MoMs of
GPMA, he recollected that in the said GPMA meetings, it was decided to shut the mills
across Gujarat, Maharashtra and Chhattisgarh collectively for certain durations. He
admitted that OP-61 also shut its manufacturing plant during the said days. Mr. Pereira
also admitted that, in certain GPMA meetings, it was decided by GPMA to increase the
price of Kraft paper by a certain amount. He stated that OP-61 did increase the price of
its Kraft paper, although not exactly as decided by GPMA.
102.5 Mr. Pereira also acknowledged that OP-61 shut-down its manufacturing plant from
27.01.2017 to 31.01.2017 (5 days), 11.02.2017 to 15.02.2017 (5 days), 11.03.2017 to
15.03.2017 (5 days), 05.04.2017 to 11.04.2017 (7 days), 02.05.2017 to 08.05.2017 (7
days), 01.06.2017 to 05.06.2017 (5 days), 02.06.2017 to 06.06.2017 (partial shut),
27.06.2017 to 01.07.2017 (5 days), which dates coincide with the collective shut-down
carried out by other members of GPMA.
102.6 Thus, evidently, Mr. Pereira admitted of his participation in GPMA meetings as well
GPMA price hike decisions, although at a later date. Similarly, he admitted to have
implemented the collective shut-down decisions of GPMA, fully or partially.
102.7 Further, in his statement recorded before the DG, Mr. Nikhar Agarwal acknowledged
as under:
“GPBL is not a member of GPMA, however, I have attended only one meeting
at Hotel Westin, Mumbai in 2017. I do not recollect the exact date of GPMA
Case No. 24 of 2017 180

meeting. Shri Tonny Dennis Pereira, Manager Sales has also attended the
meeting of GPMA once along with me and couple of times he alone also.
In GPMA meetings, members discussed about disposal of plastic waste
recovered from the Kraft Paper mills, price of Kraft Paper, price of waste
paper, collective shut-down of mills, pollution related issues etc.
I admit that my company was shut during the aforesaid days due to compulsion
and threat from the office bearers as well as members. The office bearers and
the members came to my factory and forced me to shut GPBL’s plant and
refused to leave the plant until I confirm that I will shut-down my plant along
with others.”
102.8 Though Mr. Agarwal initially stated in his deposition that he was not a member of any
WhatsApp Group in common with Mr. Pereira, when he was confronted with backup
printout of “Paper Mills – GJ/MS/CGK”, he recollected that he and Mr. Tony D.
Pereira were members of the said group. It is noted that, in the said group, Mr. Agarwal
posted a message on 17.11.2017 at 15:00 that “leaving shut-down, we are with the
association totally. We are with everyone for increasing the prices.” When confronted
with the same, Mr. Agarwal submitted that “Yes, I was supporting the price increase
decision of GPMA, but I was not supporting the planned shut-down of the mills by the
association”. Similarly, it is noted that in the said group, Mr. Agarwal posted put two
thumbs up on 17.11.2017 at 15:06 in response to a message posted by Mr. Manoj
Thane that “let’s just declare the shuts with increase ... and don’t shut”. When
confronted with the same, Mr. Agarwal submitted that “Yes, I was supporting the price
increase decision of GPMA, but I was not supporting the planned shut-down of the
mills by the association.” It is also noted that in the said group, Mr. Agarwal posted a
message on 21.11.2017 at 14:42 that “we are willing to increase the rates with
everyone as well as mentioned last week.” When confronted with the same, Mr.
Agarwal again submitted that “Yes, I was supporting the price increase decision of
GPMA, but I was not supporting the planned shut-down of the mills by the
association”.
102.9 When confronted with MoM dated 15.03.2017 of GPMA, Mr. Agarwal admitted to
have attended the said meeting and acknowledged that in the said meeting, it was
decided to increase the price of Kraft paper which OP-61 supported. Similarly, when
confronted with MoM dated 15.05.2017 of GPMA, Mr. Agarwal admitted to have
Case No. 24 of 2017 181

attended the said meeting and acknowledged that in the said meeting, it was decided to
shut-down the mills collectively. However, he stated that OP-61 did not support the
said decision.
102.10 Mr. Agarwal however, acknowledged that OP-61 shut-down its manufacturing plant
from 27.01.2017 to 31.01.2017 (5 days), 11.02.2017 to 15.02.2017 (5 days),
11.03.2017 to 15.03.2017 (5 days), 05.04.2017 to 11.04.2017 (7 days), 02.05.2017 to
08.05.2017 (7 days), 01.06.2017 to 05.06.2017 (5 days), 02.06.2017 to 06.06.2017
(partial shut) and 27.06.2017 to 01.07.2017 (5 days), which dates coincide with the
collective shut-down carried out by other members of GPMA. In this regard, he stated
that OP-61 was shut during the aforesaid days due to compulsion and threat from the
office-bearers as well as members of GPMA. The office-bearers and members came to
OP-61’s factory and forced Mr. Agarwal to shut the plant and refused to leave the plant
until he confirmed that he will shut-down his plant along with others.
102.11 Thus, evidently, Mr. Agarwal was an active member of the WhatsApp group “Paper
Mills – GJ/MS/CGK”, wherein discussions regarding price of Kraft paper, price of raw
material waste paper and collective shut-down of mills took place. He was also a
supporter of price hike decisions of GPMA, although he stated that he was forced to
follow collective shut-down decisions of GPMA under threat from GPMA.
similar to those raised by the other OPs in the matter, specifically OP-57. OP-61 also
submitted that it became a member of GPMA for business reasons only and it was only
a passive member. It had, in fact, refused to follow the decision of GPMA regarding
closure of paper mills. In a WhatsApp message posted on WhatsApp group of paper
mills, Mr. Nikhar Agarwal had clearly said that “leaving shut-down, we are with
association totally. We are with everyone for increasing the price.” In fact, OP-61 had
even filed police complaints dated 31.01.2017 and 02.08.2017 at Bhilad Police Station
against GPMA-forced shut-downs, however, it had to follow the shut-down call
sometimes because of threat and coercion by GPMA. Further, it submitted that OP-61
only produced Kraft board till 2015 and began the manufacture of Kraft paper only
thereafter. Also, it stated that it makes negligible sales to the Informants i.e., corrugated
Case No. 24 of 2017 182

box manufacturers rather, majority of its sales are either exports or made to its sole
dealer Paptex Ltd.
102.13 In the opinion of the Commission, both Mr. Tonny Pereira and Mr. Nikhar Agarwal
admitted to their participation in GPMA meetings as well as in the WhatsApp groups
mills took place. The very knowledge of OP-61 about competitors’ strategies as shared
in GPMA meetings and WhatsApp groups, compromised its independence and was, in
fact, detrimental to competition and was likely to cause AAEC in the market.
102.14 Further, it is an admitted fact that OP-61 supported and partially implemented GPMA
price hike decisions. Similarly, it is also an admitted fact that OP-61 implemented the
collective shut-down decisions of GPMA, partially or fully, albeit under GPMA threats.
All such acts of OP-61 were likely to cause an AAEC in the market. In such a scenario,
sales being made by OP-61 to corrugated box manufacturers directly or through a
dealer, or sales being made majorly through exports by OP-61, is an immaterial fact.
103. OP–62 (Kwality Pulp and Paper Mills)
103.1 It is noted from the DG Report that the representative of OP-62, namely, Mr. Vijay
Madnaik, Partner, was the President of GPMA from 2011 to 2015, in which capacity he
Case No. 24 of 2017 183

signed various circulars of GPMA dated 23.04.2011, 01.03.2013, 20.03.2013,
19.06.2013, 29.08.2013, 13.02.2014, 13.03.2014, 02.08.2014, 24.09.2015 and
16.02.2016, whereby decision to raise prices of different grades of Kraft papers were
communicated to other paper mills.
members.
103.3 In his statements recorded before the DG, Mr. Vijay Madnaik acknowledged as under:
“As the President of GPMA I coordinate meetings of Kraft Paper, Duplex

Board and News Print mill owners to discuss general issues such as pollution
related matters, government policy matters, Central Excise issues, raw
material price/availability related matters, Kraft paper price, fuel issues,
collective shut-down of mills etc. GPMA generally arrange meetings as per the
request from its members. After collecting suggestions regarding price of raw
material from the members present, I along with other office bearers used to
analyse the suggestions and if found genuine then GPMA decides to increase
the price of finished paper and issue price hike circulars to its members.
Mill owners from Vapi, Surat and Ankleshwar were the members of GPMA.
Mill owners from other parts of Gujarat which was not mentioned above,
Maharashtra, Andhra Pradesh and South India region have also attended
some of the meetings of GPMA. GPMA used to collect membership fee from its
members however, to be a member of GPMA, it was not mandatory to pay
membership fee. Since inception of GPMA till now KPPM is a member of
GPMA. KPPM has also paid membership fee to GPMA, but not paid
membership fees for the last 2 to 3 years. I have attended the meetings of
GPMA till 2015, i.e. couple of months after demitting as the President of
GPMA. During my tenure as President of GPMA meetings of GPMA were held
in the office of GPMA, hotels in Vapi, Daman and Mumbai.
So far as I can recollect there was an association for South India region
regarding Kraft Paper …
Since I was the President of GPMA, as well as partner of KPPM, I directly
convey to my firm the price hike decisions of GPMA. Regarding shut-down,
members including KPPM voluntarily decides their shut-down schedule.
During my tenure KPPM follows price hike decisions of GPMA.
Case No. 24 of 2017 184

I do not remember whether KPPM has received any circulars/MOM regarding
price hike of Kraft Paper or collective shut-down of mills from GPMA.”
“I admit that KPPM also shut its manufacturing plant almost as per the
collective shut-down decision decided by GPMA. The reason for KPPM’s shut
was due to shortage of orders and in connection with implementation of GST.
During 2015 and 2016 also in the meetings of GPMA, members discussed
about price hike of Kraft Paper and decided to increase the price collectively
and issued circulars accordingly.”
103.4 When confronted with various price hike circulars signed by Mr. Madnaik on behalf
of GPMA, he admitted to issuing the same. It is also noted from the DG Report that Mr.
Madnaik signed two such circulars even after demitting office as President of GPMA.
103.5 He also admitted when confronted with e-mail received from GPMA and OP-62’s
sale bills that OP-62 implemented the price hikes communicated by GPMA at times,
although not to the same extent and based on other factors.
103.6 It is also noted from the DG Report that the plant of OP-62 was shut-down on
27.01.2017 (partial shut - 7611 KG) and from 28.01.2017 to 31.01.2017 (4 days), on
11.02.2017 (partial shut - 9078 KG) and from 12.02.2017 to 14.02.2017 (3 days), on
15.02.2017 (partial shut – 20354 KG), from 12.03.2017 to 15.03.2017 (4 days), from
06.04.2017 to 09.04.2017 (4 days), from 03.05.2017 to 08.05.2017 (6 days), from
04.06.2017 to 05.06.2017 (2 days), on 28.06.2017 (partial shut – 4940 KG) and from
29.06.2017 to 01.07.2017 (3 days), which dates fully or partially coincide with the shut-
down dates 27.01.2017 to 31.01.2017 (5 days), 11.02.2017 to 15.02.2017 (5 days),
11.03.2017 to 15.03.2017 (5 days), 05.04.2017 to 09.04.2017 (5 days), 02.05.20187 to
08.05.2017 (7 days), 01.06.2017 to 06.06.2017 (6 days) and 27.06.2017 to 03.07.2017
(7 days) issued by GPMA.
103.7 Thus, evidently, Mr. Madnaik issued various price hike circulars on behalf of GPMA.
He also stated that OP-62 partially implemented GPMA price hike decisions and it is
also evident that OP-62 partially implemented the collective shut-down decisions of
GPMA.
103.8 In its reply to the DG Report, OP-62 made various submissions, which were largely
similar to those raised by the other OPs. It also submitted that its price hike decisions
were not based on GPMA directives but rather, were independent in nature and that its
Case No. 24 of 2017 185

shut-down dates only coincidentally match partially with the shut-downs declared by
GPMA. In fact, in the MoM of GPMA dated 15.03.2017, a boycott call against OP-62
is specifically recorded on account of its refusal to follow GPMA diktats. OP-62 also
stated that it was never a member of any WhatsApp group where prices or shut-downs
were discussed.
103.9 In the opinion of the Commission as recorded in the earlier part of the present order
numerous times, the provisions of Section 3(1) of the Act not only proscribe
agreements which cause an AAEC in the market, but also forbid agreements which are
likely to cause an AAEC in the market. Since the very knowledge of OP-62 and Mr.
Vijay Madnaik regarding price increase and collective shut-down directives
compromised their independence and the same was likely to cause AAEC in the
market..
104. OP–63 (Northern India Paper Mills Association)
104.1 It is noted from the DG Report that Mr. Pankaj Aggarwal, Managing Director of OP–
64, was the President of OP–63 and as such, his statement was recorded on oath by the
DG. In his statement, Mr. Aggarwal denied the existence of any association by the
name of NIPMA and denied that he is the President thereof.
Case No. 24 of 2017 186

104.2 However, it is noted from the DG Report that, as per various media reports, including
in the Economic Times and Pramaya News, reproduced hereunder, the paper mills in
North India had suspended their operations for five days, from 21.01.2016 to
26.01.2016 and Mr. Pankaj Aggarwal, as President of NIPMA, had given a statement in
this regard to the newspapers:
104.3 Further, the DG, from the e–mail account of OP–64, recovered the following e–mail,
whereby, in reply to an e–mail dated 26.03.2018 sent by Mr. Ashok Gupta of OP–74 to
Mr. Pankaj Aggarwal requesting him to send his bio–data for a workshop, Mr. Pankaj
Aggarwal, vide email dated 27.03.2018, sent his bio–data mentioning himself as the
Chairman of NIPMA:
Case No. 24 of 2017 187

When Mr. Pankaj Aggarwal was confronted by the DG with the above e–mail, he
admitted that the e–mail was sent by his political assistant, Mr. Virender.
104.4 It is also noted from the DG Report that Mr. Pankaj Aggarwal was a member of the
WhatsApp group “NEWS Paper Mills” in which mill owners from North, East, West
and South used to discuss the prices of Kraft paper and collective shut–down of paper
mills. In the said group, the following incriminating messages, inter alia, were found
against Mr. Pankaj Aggarwal:
(a) Message dated 25.02.2018 at 01:46, posted by Mr. Pankaj Aggarwal as President of
NIPMA, in Hindi, regarding a meeting to be held on 26.02.2018 to make shut–
down of five days as decided in 21.02.2018 meeting, a success:
(b) Message dated 20.03.2018 at 06:57, posted by Mr. Pankaj Aggarwal as President of
NIPMA, in Hindi, regarding a decision taken in a meeting regarding shut–down of
paper mills from 02.04.2018 to 07.04.2018, increasing rate of Kraft paper by ₹1 per
kg and further increase of rate by ₹1 per kg after shut–down from 02.04.2018:
Case No. 24 of 2017 188

(c) Message dated 05.05.2018 at 10:43, posted by Mr. Pankaj Aggarwal as President of
NIPMA, in Hindi, regarding a decision taken in a meeting to shut–down the mills
for six months from the 2nd to 6th of every month and holding the price of finished
paper 18BF @ ₹ 23 per kg and hold the next meeting on 15.05.2018:
(d) Message forwarded by Mr. B. B. Gupta of OP–79 on 31.08.2016, in Hindi, to

which Mr. Pankaj Aggarwal responded, which shows that it was decided by Mr.
Pankaj Aggarwal under the banner of NIPMA in the meeting held on 05.05.2018, to
shut the mills from the 2nd to 6th of every month for the next six months and not
change the prices of 18 BF paper by keeping it at a minimum ₹23 per kg:
Case No. 24 of 2017 189

(e) Messages exchanged between Mr. Pankaj Aggarwal and Mr. Neeraj Maheshwari of
OP–61 on 01.09.2016, regarding a meeting in Mumbai:
(f) Message dated 22.10.2016, posted by Mr. Pankaj Agarwal as President of NIPMA,
in Hindi, about the decision taken in a meeting held a day before, regarding shut–
down of mills from 31.10.2016 to 05.11.2016 and reduction in price of waste paper
by 20 paisa from 23.10.2016 and 25.10.2016:
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(g) Message dated 10.11.2016 posted by Mr. Pankaj Aggarwal, regarding the decision
taken in a meeting held on 10.11.2016 for shut–down of paper mills for five days
from 16.11.2016, increase in price of Kraft paper by ₹1 per kg with immediate
effect and reduction in the price of waste paper:
(h) Message dated 16.11.2016 posted by Mr. Pankaj Aggarwal, in Hindi, informing
members regarding a meeting of NIPMA to be held on 17.11.2016 at Hotel
Godwin, Meerut:
(i) Message dated on 26.01.2017 posted by Mr. Sunil Agarwal, President of GPMA,
sharing the decision of GPMA for collective shut–down of Kraft mills from
27.01.2017 to 31.01.2017. In support of the above decision, Mr. Pankaj Aggarwal
also posted a message on 27.01.2017 mentioning that North Mills will also support
the collective shut–down decision of GPMA:
Case No. 24 of 2017 191

(j) Mr. K. Swaminathan, Secretary of SIKPMA posted a message on 28.01.2017
mentioning increase in the price of Kraft paper @ ₹2,000/PMT w.e.f. 01.02.2017. In
support of the same, Mr. Pankaj Aggarwal added an emoji on the same date and
assured strong decision in the meeting to be held on 02.02.2017:
(k) Mr. Arvind Kumar of OP–65 posted a message on 03.02.2017 asking Mr. Pankaj
Aggarwal to suggest the North Mills to increase the price of Kraft Paper else his
efforts will be wasted. In response, Mr. Pankaj Aggarwal replied that the mills have
already increased the price by ₹1 per kg and are also planning to further increase ₹2
per kg from 01.03.2017:
Case No. 24 of 2017 192

(l) Messages dated 25.02.2017 relating to NIPMA meeting:
(m) Mr. K. Swaminathan, Secretary of SIKPMA, asked Mr. Pankaj Aggarwal on

27.03.2017 about the prices to be increased by North India Mills and shut–down
schedule in April 2017. In response, Mr. Pankaj Aggarwal said that he was going
for a meeting now and stoppage of mills will be from 05.04.2017 to 09.04.2017:
(n) Messages dated 03.02.2017 on price co–ordination:
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(o) Messages dated 07.02.2017 on price co–ordination:
(p) Messages dated 23.02.2017 on price co–ordination:
(q) Messages exchanged on 26.04.2017 between Mr. Pankaj Aggarwal and others
showing that Mr. Aggarwal organised all India level meetings of all the regional
associations of Kraft paper mills regarding price hike of Kraft paper:
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Case No. 24 of 2017 195
Case No. 24 of 2017 196
Case No. 24 of 2017 197
(r) Message dated 23.05.2017 posted by Mr. B. B. Gupta of OP–79 on behalf of Mr.
Pankaj Aggarwal, President of NIPMA, in Hindi, regarding meeting held at OP–65
and decisions of the said meeting i.e., to increase ₹1 in price of Kraft paper and
shut–down of mills from 02.06.2017 to 06.06.2017:
(s) Message dated 16.09.2017 posted by Mr. Pankaj Aggarwal, in Hindi, intimating
decisions taken in a meeting such as increase in price of Kraft Paper by ₹1/– per kg
from 21.09.2017 and next meeting on 25.09.2017:
Case No. 24 of 2017 198

(t) Message dated 25.10.2017 posted by Mr. Pankaj Aggarwal, in Hindi, proposing a
joint meeting of all Kraft paper mill owners from North, East, West and South
region on 02.11.2017 at Hotel Royal Plaza, New Delhi. Being President of NIPMA,
Mr. Aggarwal informed the members about the agenda of the meeting, such as
discussions regarding price hike of Kraft paper and controlling price of waste paper
and other associations also confirmed their participation:
(u) Message dated 03.11.2017 posted by Mr. Pankaj Aggarwal, after meeting dated
02.11.2017, sharing decision of price hike of Kraft paper @ ₹2 per kg at all–India
level:
Case No. 24 of 2017 199

The above WhatsApp communications made by Mr. Pankaj Aggarwal clearly show that
an association by the name of NIPMA existed, and Mr. Pankaj Aggarwal was its
President.
104.5 It is also noted from the DG Report that Mr. Pankaj Aggarwal was connected with
other associations like GPMA, not only through message exchanges, but also
otherwise, through participation in their meetings. The DG has noted that Mr. Pankaj
Aggarwal is also the proprietor of a firm, namely, Annapurna Imports, Muzaffarnagar,
U.P., which deals in the business of import of paper mill machinery. From the MoM of
GPMA dated 07.04.2017, it is noted that one Mr. Vishal Agarwal, who is a relative of
Mr. Pankaj Aggarwal, attended the said meeting of GPMA on behalf of Annapurna
Imports. In the said meeting, it was decided by GPMA to shut–down Kraft paper mills
from 02.05.2017 to 08.05.2017 and not increase prices. Dinner for said meeting was
sponsored by the firm of Mr. Pankaj Aggarwal, i.e., Annapurna Imports. In his
statement on oath recorded before the DG, Mr. Pankaj Aggarwal admitted to these
facts. Further, he admitted that he attended another meeting of GPMA around 2–3 years
ago at Hotel JW Marriot, Mumbai, and in the said meeting, discussions such as
reduction in costing and increase of the rate of Kraft paper were held.
104.6 In fact, representatives of several members of GPMA also stated about NIPMA and
Mr. Pankaj Aggarwal, in their statements on oath recorded before the DG:
(a) Mr. Lalit Garg of OP–2 stated that “Mr. Pankaj Aggarwal of Bindlas Duplex is also
a member of this group who is also the president of Northern India Paper Mills
Association. …”
Case No. 24 of 2017 200

(b) Mr. Omprakash Rathi of OP–3 stated that “I remember that Mr. Pankaj Aggarwal
of Bindlas Duplex was one of the admin of NEWS group. …”
(c) Mr. Satyanarayan Agarwal of OP–4 stated that “I would also like to state that Sh.
Pankaj Aggarwal of Bindlas Duplex also used to send messages on this group on as
President of North India Paper Mills Association regarding shut–down of mills and
increase in price.”
(d) Mr. Nimish Shah of OP–6 stated that “I remember that Mr. Pankaj Aggarwal of
Bindlas Duplex used to exchange the decisions taken by Northern India Paper Mills
Association regarding price hike and shut–down of mills.”
(e) Mr. Sundeep Shah of OP–7 stated that “Sh. Pankaj Aggrawal of Bindlas Duplex
who is the president of Northern India Paper Mills Association was also a member
of the said WhatsApp group and he used to convey about the decisions taken by
Northern India Paper Mills Association for price hike of Kraft paper and shut–
down of paper mills.”
(f) Mr. Tejas Dharia of OP–50 stated that “I am a member of only two WhatsApp
groups namely “NEWS PAPER MILLS” operated by Shri Pankaj Aggarwal,
President of Northern India Paper Mills Association and “PAPER MILLS –
GJ/MS/C.G.K.” operated by the office bearers of GPMA/FIPR.”
104.7 Thus, evidently, Mr. Pankaj Aggarwal was the President of an association named
NIPMA and he was an active member of the WhatsApp group “NEWS Paper Mills”
wherein he regularly posted messages as the President of NIPMA, in which, inter alia,
meeting schedules, price hike decisions and collective shut–down decisions of NIPMA
were included. Before the media and even in his bio–data, Mr. Aggarwal had clearly
mentioned himself as the President of NIPMA. Even representatives of certain other
paper mills who were members of GPMA, were aware of NIPMA and its President Mr.
Pankaj Aggarwal.
104.8 Therefore, based on the clear evidences collected by the DG as detailed above, the
Commission finds that OP–63 indulged in discussions with its members and issued
directions to them from time to time for increasing the prices of Kraft paper and for
collective shut–down of paper mills, which conduct amounts to indirectly determining
Case No. 24 of 2017 201

the sale prices of Kraft paper in contravention of the provisions of Section 3(3)(a) of the
Act and limiting and controlling the production, supply and market of Kraft paper in
contravention of the provisions of Section 3(3)(b) of the Act, read with Section 3(1) of
the Act, from 2016 to 2019.
105. OP–64 (Bindlas Duplex Limited)
105.1 As detailed above, Mr. Pankaj Aggarwal, Managing Director of OP–64, was the
President of NIPMA. As such, he was actively involved in the anti–competitive
activities of NIPMA, which included holding meetings to discuss and decide price hike
of Kraft paper and collective shut–down of paper mills, and communicating the same to
NIPMA members.
105.2 Further, it is noted from the DG Report that OP–64 followed the collective shut–down
directives of NIPMA, fully or partially, from time to time:
OP–64’s shut–down as per its

NIPMA decision
Daily Stock Register/RG–1
21.01.2016 to 26.01.2016 19.01.2016 to 26.01.2016
04.09.2016 to 08.09.2016 04.09.2016 to 06.09.2016
31.10.2016 to 05.11.2016 31.10.2016 to 05.11.2016
01.03.2017 to 05.03.2017 01.03.2017 to 04.03.2017
05.04.2017 to 09.04.2017 05.04.2017 to 09.04.2017
02.06.2017 to 06.06.2017 02.06.2017 to 06.06.2017
105.3 In its suggestions/objections to the DG Report, OP–64 has, inter alia, argued the
following points:
(a) The DG has not identified the product to which the investigation relates, and it has
not delineated the market in the present case;
(b) The DG has also not shown which states are covered in the Northern region
(NIPMA) for the purposes of investigation;
(c) Though multiple OPs have stated on oath before the DG that there is nothing like
NIPMA, the DG has not believed the same and without there being any registration,
membership, bank account, PAN, etc., of the same, the DG has taken NIPMA to be
a separate association and Mr. Pankaj Aggarwal to be the President of the same;
Case No. 24 of 2017 202

(d) The DG has failed to establish any AAEC resulting from the alleged conduct of the
OPs by taking into consideration the factors stated under Section 19(3) of the Act;
(e) Several other arguments similar to those made by the other OPs in the matter have
also been made.
105.4 As far as the first argument raised by OP–64 is concerned, it is evident from the DG
Report as well as from the order passed by the Commission under Section 26(1) of the
Act that the present case relates to the product “Kraft paper”. Further, as clarified by the
Hon’ble Supreme Court of India in Competition Commission of India v. Co–ordination
Committee of Artists and Technicians of West Bengal Film and Television and Others,
Miscellaneous Application No. 490 of 2017 in Civil Appeal No. 6691 of 2014 decided
on 07.05.2018, determination of a relevant market is not a mandatory pre–condition for
assessing an alleged violation of Section 3(3) of the Act.
105.5 Regarding the second argument, that it is not clear as to which states are covered in
the Northern region (NIPMA), again, delineation of relevant geographic market with
respect to each association whose conduct has been examined in terms of Section 3(3)
of the Act is not a precursor in the present matter.
105.6 Regarding the argument of OP–64 that multiple OPs have stated before the DG on
oath that there exists no such association as NIPMA, the Commission notes that it is
evident from the evidence available on record, as analysed above in respect of OP–63,
and further in succeeding paragraphs in respect of other members of NIPMA, that
several Kraft paper mills were collectively taking decisions regarding price of Kraft
paper and collective shut–down of paper mills, under the aegis of an association by the
name of NIPMA, and Mr. Pankaj Aggarwal of OP–64 was the President thereof.
105.7 As far as the argument regarding the DG not establishing any AAEC resulting from
the alleged conduct of the OPs by taking into consideration factors stated under Section
19(3) of the Act is concerned, it is well-settled that in cases involving conduct violative
of the provisions of Section 3(3) of the Act, AAEC is presumed; the infringers in fact
have to, by resorting to positive factors stated under Section 19(3) of the Act, rebut the
said presumption by showing that their conduct resulted in either accrual of benefits to
consumers, improvement in production or distribution of goods or provision of
services, or promotion of technical, scientific and economic development by means of
Case No. 24 of 2017 203

production or distribution of goods or provision of services. Since in the present matter,
OP–64 has not given any submission to rebut the said presumption, such argument of
OP–64 cannot be accepted.
105.8 Other arguments raised by OP–64 are similar to those raised by the other OPs in the
matter and the same have already been dealt with in the earlier parts of the present
order.
Commission finds that OP–64 was part of the discussions held at NIPMA regarding
price increase of Kraft paper and collective shut–down of paper mills, and it also
followed the directions issued by NIPMA, fully or partially, in this regard. Such
conduct of OP–64 amounts to indirectly determining the sale prices of Kraft paper in
105.10 In its supplementary suggestions/objections to the DG Report, OP–64 has, inter alia,
put forth multiple mitigating factors as to why, even if anti–competitive allegations
against it are proved, penalty should not be imposed.
105.11 Such submissions made by OP–64 shall be considered in the subsequent part of the
106. OP–65 (Paswara Papers Limited)
106.1 It is noted from the DG Report that Mr. Arvind Kumar, Director of OP–65, was a
member of two WhatsApp groups of paper mills, namely, “Kraft Paper Mills” in which
Kraft paper mill owners from Shamli, Muzaffarnagar and Meerut were members and
material waste paper and collective shut–down of mills took place. It is also noted from
the DG Report that Mr. Arvind Kumar’s brother Mr. Vinod Agarwal and his cousin
brother Mr. Kapil Gupta, who were also Directors of OP–65, were also part of the
WhatsApp group “NEWS Paper Mills”.
106.2 In the WhatsApp Group “NEWS Paper Mills”, Mr. Arvind Kumar, is found to have
shared various messages with his competitors, which inter alia, include the following:
Case No. 24 of 2017 204

(a) On 06.06.2018 at 6:04:44, he posted, “we have increased our rates by 1 Re/kg for
all qualities of multilayer Kraft Paper effective immediately. No orders will be
taken at old rates.” In the other message sent on the same date at 6:04:45 PM, he
updated “results of the meeting that increase 1 Rs per kg”.
(b) On 24.08.2018 at 2:03:45 PM, he posted “prices for multilayer Kraft Paper has
been further increased by Re. 1 per kg, total increase is now 2 per kg all new
booking will be accepted at new prices”. Further on the same day, he sent a
message at 02.06.41 updating “we are fully booked till 15 Sep. order in hand Max
Export aap log rate increase kare boldly rate 101% increase hoga”.
(c) On 09.09.2018 at 06:15:26 PM, he posted, “prices for multilayer Kraft Paper has
been further increased by Re. 1 per kg. Total increase now is Rs.4 per kg. all new
bookings will be accepted at new prices as under”. Further, on the same date he
sent a message at 06:19:23 PM updating that he closed all bookings, and further at
06:19:27, he informed that “October tomorrow decide hoga price”.
(d) On 09.09.2018 at 08:40:06 PM, he posted, “dear saathiyo jo mill 2/– 3/– step wise
full hote jaye pl Rs. 4 + per aa jaye now Paswara new rate is Rs. 4”.
(e) On 10.09.2018 at 11:30:50 AM, he posted, “this is to inform you that due to
continuous uncertainty and instability in market prices of input as waste paper,
coal etc. has drastically increased by more than 50% in past couple of weeks and
still continuously rising each day as INR fail to all time low vs US $ and expected to
further, deteriorate in coming days as forecast. So, prices for multilayer Kraft has
been further increased by Rs. 1 per kg, total increase now is Rs. 4 per kg. 4 per KG
price increase has come into effect as follows– w.e.f. 02.07.2018 Rs.1, w.e.f.
24.08.2018 Rs.1, w.e.f. 30.08.2018 Rs.1 and w.e.f. 08.09.2018 Rs.1”.
(f) On 31.01.2019 at 12:34:56 PM, he posted, “this is to inform all that prices of
multilayer Kraft Paper has been increased by Rs. 1 per kg request all to place order
accordingly. Further increase of Rs. 1 per kg will be applicable from 11th Feb,
2019”.
When Mr. Arvind Kumar was asked by the DG as to why he posted messages, such as
the massage dated 06.06.2018, regarding price increase of OP-65 to inform his
Case No. 24 of 2017 205

competitors in the WhatsApp group, he stated that “I informed the other paper mills
that my company has increased the price, as it was upto them to take appropriate
decision regarding price increase.” Further, when Mr. Kumar was asked about the
messages dated 24.08.2018, 09.09.2018, 10.09.2018 and 31.01.2019, wherein he
informed the group about the price increase of OP–65 and suggested other paper mills
to increase the price as well, he stated that “… I also asked the other paper mills to
increase the rate because all were suffering losses.”
106.3 It is also noted from the DG Report that Mr. Arvind Kumar had also shared the
following messages in the “NEWS Paper Mills” WhatsApp group:
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Case No. 24 of 2017 207
It can be seen from the aforesaid messages that Mr. Arvind Kumar used to inform the
other paper mills about the price increase by OP–65 and he also used to request the
other mill owners in the Northern belt to increase the rate of Kraft paper. It can also be
seen that Mr. Arvind Kumar was in regular touch with Mr. Pankaj Aggarwal, President
of NIPMA, for increasing the price of Kraft paper. He used to take suggestions from
Mr. Pankaj Aggarwal regarding implementation of the price hike of Kraft paper by his
company. It can be seen that, on 03.02.2017, Mr. Arvind Kumar requested Mr. Pankaj
Aggarwal to support his company’s price hike decision. Subsequently, on 04.02.2017,
Mr. Arvind Kumar informed the other mill owners about the increase in price of all
grades of Kraft paper by ₹1 per kg from 10.02.2017. He also specifically requested the
other mill owners in the Northern India region for a further price increase of ₹1 from
the end of February 2017. It can also be seen from the aforesaid WhatsApp
communications that Mr. Arvind Kumar was in contact with other associations such as
GPMA on the issue of collective price increase. He supported the decision of all–India
level meeting for increasing the price of Kraft paper.
Case No. 24 of 2017 208

106.4 Thus, evidently, Mr. Arvind Kumar, on behalf of OP–65 was involved in fixing the
price of Kraft Paper with other paper mills and used to exchange OP–65’s sensitive
pricing information so that competitors can also decide their prices accordingly. All
these messages establish that Mr. Arvind Kumar used to co–ordinate with Mr. Pankaj
Aggarwal, President of NIPMA, other associations and Kraft paper mills in the
Northern India region, to collectively increase the prices of Kraft paper.
106.5 It is also noted from the DG Report that on 23.05.2017, a meeting was organised by
Mr. Pankaj Aggarwal, President of NIPMA, regarding collective shut–down of paper
mills from 02.06.2017 to 06.06.2017 and increase in the price of Kraft paper. A
message regarding the said meeting was sent by Mr. Kapil Gupta, an official of OP–65,
in the other WhatsApp group of Kraft Paper Mills, as follows:
“today in guidance of Mr. Pankaj Ji President Paper mill association we had a

meeting in Paswara Papers Limited and discussed on various issues and it is
decided in meeting that all of us will shut the machines from 02.06.2017 to
06.06.2017 to save the industry from ongoing crisis. New price list is attached
below. Paswara Papers Limited informs all that new prices of multilayer Kraft
Paper are as under……………”.
When Mr. Arvind Kumar was asked about the above message, he admitted that Mr.
Pankaj Aggarwal, with 2–3 other paper mills, had come to his factory on 23.05.2017
for a courtesy call over tea. During tea, the crisis of high input cost was discussed, and
therefore, Mr. Pankaj Aggarwal suggested that the paper mills of Muzaffarnagar and
Meerut should be closed from 02.06.2017 to 06.06.2017, and it was also decided to
increase the price of Kraft paper. Mr. Arvind Kumar also acknowledged that OP–65
was, in fact, shut–down mills on the said days.
106.6 Further, it is also noted from the DG Report that Mr. Aksheev Agarwal, son of Mr.
Arvind Kumar, had sent a message to the dealers of OP–65 informing them of price
increase by ₹2 per kg from 27.12.2017 and total price increase including previous
increase of ₹4 per kg. Mr. Aksheev had also forwarded a message of Mr. Pankaj
Aggarwal, President of NIPMA, to the dealers regarding decision taken in a meeting, to
shut–down the mills from 02.04.2017 to 04.04.2017, increase the rate of finished kraft
paper by ₹1 per kg and after shut–down, further increase by ₹1 per kg. When Mr.
Arvind Kumar was asked about the same, he admitted that the said messages were sent
Case No. 24 of 2017 209

by his son. This clearly shows that to implement the decisions of NIPMA, Mr. Aksheev
Agarwal had sent/forwarded such messages to OP–65’s dealers.
106.7 It is also noted from the DG Report that OP–65 followed the price increase and
collective shut–down directives of NIPMA, fully or partially, from time to time. The
paper mill of OP–65 was closed from 03.06.2017 to 06.06.2017, 28.06.2017 to
04.07.2017, 15.07.2017 to 21.07.2017 and 11.11.2017 to 14.11.2017 which dates match
the shut–down schedule of OP–64, as well as with some other OPs who were members
of NIPMA. When Mr. Arvind Kumar was asked about the same, he said that the
matching of dates with OP–64 is a mere coincidence. However, matching of shut–down
dates on 4 separate occasions can hardly be believed to be a coincidence, specifically
when both Mr. Arvind Kumar of OP–65 and Mr. Pankaj Agarwal of OP–64 were
members of “NEWS Paper Mills” WhatsApp group where communications regarding
collective shut–downs used to take place.
106.8 Regarding OP–65’s participation in the cartel arrangement, Mr. Arvind Kumar stated
in his statement recorded before the DG, as follows:
“I have increased my price and shut–down the mill due to adverse market
conditions. I was not aware that discussing the problems over WhatsApp is a
violation of Law. My intention was never to commit any illegal activities and
the WhatsApp messages were exchange under ignorance of Law. I would like
to clarify that the price increase decided and discussed with other paper mills
were not actually increased, the prices used to come down whenever there is
decrease in the input cost. Ever though the input cost kept on increasing my
company has never caused any loss to our customers. My company has always
been with the customer and never stop their supplies. A sympathetic view may
be taken against my company. It was our compulsion to discuss the common
industry issue like price hike etc. with the other paper mills because at that
relevant time the industry was facing acute crisis. I also admit that my brother
Sh. Vinod Agarwal and cousin brother Sh. Kapil Gupta were also part of the
said WhatsApp group NEWS PAPER MILL and they also used to communicate
with the other Kraft Paper manufacturers in the said group. I am personally
aware about the messages sent by them in the group and individually to
dealers/Kraft paper manufacturers etc. I take their full responsibility and I am
aware about the messages sent by them …”
106.9 In its suggestions/ objections to the DG Report, OP–65, apart from making submissions
similar to those made by several other OPs, argued that mere sharing of price increase
Case No. 24 of 2017 210

messages or shut–down messages by a Kraft paper manufacturer in a WhatsApp group,
without there being any proof that the increase was followed by the other Kraft paper
manufacturers who were members of that group, does not amount to an anti–
competitive agreement between the Kraft paper manufacturers. Such messages were
shared in the WhatsApp group of which dealers were also members for their
information and benefit.
106.10 In the opinion of the Commission, sharing of price increase and/ or shut–down
information by one competitor with other players in the market compromises the
independence of all such competitors; as such, the same amounts to sharing of
commercially sensitive information. It is likely to cause AAEC in India, and as such,
even mere sharing of such sensitive information/discussions, even if not followed by
other competitors, may amount to a violation of the competition law. Be that as it may,
in the present case, as can be seen in the latter part of the present order, price increase
and collective shut–down directives of NIPMA, at times even those posted by Mr.
Arvind Kumar in “NEWS Paper Mills”, were, in fact, implemented, fully or partially,
by the other OPs from time to time. As such, the said argument of OP–65 holds no
merit.
that OP–65 was part of the discussions held at NIPMA regarding price increase of Kraft
paper and collective shut–down of paper mills, and it also followed the directions
issued by NIPMA, fully or partially, in this regard. Such conduct of OP–65 amounts to
106.12 With respect to penalty, OP–65 made several submissions which were largely similar
to those made by the other OPs in the matter.
107. OP–66 (Silverton Pulp and Papers Private Limited)
Case No. 24 of 2017 211

107.1 It is noted from the DG Report that Mr. Akshay Jain, Director of OP–66, was a
member of two WhatsApp groups of paper mills, namely, “Kraft Paper Mills” and
material waste paper and collective shut–down of mills took place.
107.2 In the WhatsApp group “NEWS Paper Mills”, Mr. Akshay Jain (mentioned as Akash
Silver Ton) is found to have shared various messages with his competitors, which, inter
alia, include the following:
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Case No. 24 of 2017 213
107.3 Thus, there is evidence of regular discussions on price fixing of Kraft paper between
Mr. Akshay Jain of OP–66 and other paper mills, not only from North India but also
who were members of GPMA.
107.4 In the WhatsApp Group “Kraft Paper Mills” also, Mr. Akshay Jain is found to have
shared a message informing the dealers about price increase of OP–65 by ₹1,000/–
PMT and shut–down of mills from 02.06.2017 to 06.06.2017. It is noted from the DG
Report that such price increase and shut–down dates match with the decision taken in
the NIPMA meeting held at OP–64 on 23.05.2017.
107.5 It is also noted that a message dated 05.05.2018 was also posted in “NEWS Paper
Mills” by Mr. Bhushan Gupta of OP–79 informing the group about the decisions of
NIPMA including dates of collective shut–down of mills. In this regard, Mr. Akshay
Jain, in his statement recorded before the DG, acknowledged that OP–66 was closed
from 03.07.2018 to 07.07.2018, which dates match with the dates of shut–down posted
by Mr. Gupta in “NEWS Paper Mills”.
Case No. 24 of 2017 214

107.6 In the opinion of the Commission, this clearly shows that Mr. Jain also used to get
information about collective shut–down dates from NIPMA and other paper mills.
107.7 It is also observed from the RG–1 Register filed by OP–66 that its manufacturing
plant was shut from 06.04.2017 to 08.04.2017 (3 days) and on 09.04.2017 (partially)
which dates also almost match with the collective shut–down dates declared by
NIPMA. The manufacturing plant of OP–66 was also closed from 11.05.2016 to
14.05.2016, 02.03.2017 to 04.03.2017, 06.04.2017 to 08.04.2017, 03.05.2017 to
05.05.2017 and 03.06.2017 to 06.06.2017, which also closely match the shut–down
dates of OP–64 and OP–67.
107.8 When the dates of shut–down of OP–66 match the shut–down dates declared by
NIPMA and/or shut–down dates of other paper mills, that too when Mr. Akshay Jain
was one of the members of the WhatsApp groups in which shut–down dates were
discussed, it cannot be believed that OP–66’s shut–down was solely due to maintenance
reasons as stated by Mr. Jain in his statement recorded before the DG. The only
inference which can be drawn is that OP–66 was involved in collective shut–down of
kraft paper mills as a member of NIPMA.
107.9 In its suggestions/objections to the DG Report, OP–66 made submissions similar to

those made by the other OPs, especially OP–65. The same have already been dealt with
in the earlier parts of the present order.
107.11 With respect to penalty, OP–66 also made several submissions which were largely
similar to those made by the other OPs in the matter.
Case No. 24 of 2017 215

108. OP– 67 (Maruti Papers Ltd.)
108.1 It is noted from the DG Report that Mr. Atul Bansal, Director of OP–67, was a
member of two WhatsApp groups of paper mills, namely, “Kraft Paper Mills” and
material waste paper and collective shut–down of mills took place. Mr. Sanjay Kumar
Garg, CEO of OP–67, was also a part of two WhatsApp Groups namely “Paper
Industries” and “Kraft Paper Mills”.
108.2 In his statement recorded before the DG, Mr. Atul Bansal admitted to his participation
in “NEWS Paper Mills” and also admitted that discussion on prices of Kraft paper used
to take place in such group. The relevant portion of his statement in this regard, is as
follows:
“Yes this is the same WhatsApp group in which I was a member however, I
was removed from the group on 11.02.2019. I remember that my name was
added to the above group by Shri Brij Bhushan Gupta, Ashoka Rolls, Delhi.
However, I was almost a silent member in this group. I admit that certain
members of the group exchanged prices of Kraft Paper.”
108.3 In the WhatsApp group “Kraft Paper Mills”, Mr. Bansal admitted that he had sent a
message in the month of June 2017 regarding increase in price of Kraft Paper and shut–
down of OP–67. The said message was as follows:
“Dear Sir, please note that we are increasing our rates of papers by Rs. One
from the 1st of June in all our qualities. We would also like to inform you that
we will be shutting our plant from 2nd June for about 5 days due to mechanical
work. So all the dealers are requested to please book future orders
accordingly……… Maruti Papers Limited”
108.4 The Informants have also filed on record another message sent on WhatsApp group
by an employee of OP–67 regarding price increase, which is as follows (though the
same message has been denied by OP–67 in its suggestions/objections to the DG
Report):
Case No. 24 of 2017 216

108.5 It is noted from the DG Report that identical messages were also sent by certain other
paper mills to their dealers informing about the price increase, which are as follows:
108.6 Similarly, it is noted that OP–67 had also sent the following message regarding
increase of price by ₹1 per kg post meeting dated 23.05.2017 of NIPMA held at OP–65
by Mr. Pankaj Aggarwal:
Case No. 24 of 2017 217

A similar message regarding price increase was also sent by OP–66.
108.7 Similarity of price increase messages of OP–67 with OP–65, OP–68, OP–69, OP–70,
OP–77 and OP–78 proves that they were all involved in collective price increase,
otherwise identical messages for price increase would not have been sent.
108.8 It is also noted that, on 08.02.2014, one Mr. Neeraj Goel, Director of OP–70 and
Managing Director of Agarwal Duplex Board Mills Ltd., had informed in the
WhatsApp group about the decision of meeting of various paper manufactures held in
Delhi on 08.02.2014 regarding increase in the price of finished paper by ₹1000/– MT,
reducing ₹1000/– MT in waste paper, collective shut–down of plants from 12.02.2014
to 17.02.2014, and schedule of next meeting on 22.02.2014. He had, on 26.08.2014,
also informed about the postponement of shut–down of mills and the new date of shut–
down from 01.09.2014 to 06.09.2014.
108.9 On these messages, Mr. Sanjay Kumar Garg of OP–67, in his statement recorded before
the DG, admitted that whenever there was an increase in input cost, the company tried
to increase the price of finished paper. He further stated that the meeting in this regard
may have been held in Delhi wherein the said decisions were taken. He also stated that
Mr. Neeraj Goel is an old experienced person in the Kraft paper industry, due to which
paper mills sometimes used to follow his advice.
108.10 Regarding the meeting on 08.02.2014, Mr. Atul Bansal had also forwarded the
following WhatsApp messages on 03.02.2014 and 08.02.2014 to Mr. Sanjay Kumar
Garg:
“02.03.2014 at 04:14 PM Atul Bansal: D/sir, manufacturer of Kraft (Agro &

waste) are cordially invited in the meeting on 08th Feb in Delhi at 12:00 noon.
Agenda to inc. Rs.3000/– MT. Regards Neeraj Goel.”
“02.08.2014 at 05:15 PM: Atul Bansal: Dear sir, decision of today’s meeting
held in Delhi: 1– To Inc. Rs.1000 MT in finished product with imm. effect. 2–
To reduce Rs.1000 MT in waste paper with imm. effect. 3– Plants will remain
shut from 12 Feb. to 17 Feb. 4– Next meeting is schedule on 22. Feb. in Delhi.
Regards Neeraj Goel”
When asked about these messages, Mr. Sanjay Kumar Garg admitted that whenever the
price of waste paper increased, Mr. Atul Bansal used to discuss with other mill owners
to increase the price of Kraft paper and reduce the purchasing price of waste paper.
Case No. 24 of 2017 218

108.11 It is also noted from the DG Report that when Mr. Atul Bansal was asked about the
reasons for his membership in “NEWS Paper Mills” and “Kraft Paper Mills”
WhatsApp groups, he stated that it was helpful for him to get the information regarding
prices of Kraft paper, shut–down schedule and prices of waste paper. The above
evidence clearly shows that OP–67 was involved in fixing the price of Kraft paper with
other paper mills.
108.12 It is also noted from the RG–1 Register of OP–67 that the manufacturing plant of OP–
67 was shut from 22.01.2016 to 24.01.2016, 16.02.2016 to 20.02.2016, 24.03.2016 to
26.03.2016, 11.05.2016 to 13.05.2016, 31.07.2016 to 01.08.2016, 02.03.2017 to
04.03.2017, 06.04.2017 to 08.04.2017, 03.05.2017 to 05.05.2017, 03.06.2017 to
05.06.2017, 03.05.2018 to 04.05.2018, and 05.11.2018 to 08.11.2018, during which
period, manufacturing plants of OP–64, OP–65, OP–66 and OP–68 were also shut–
down, fully or partially. Though in its suggestions/ objections to the DG Report, OP–67
has presented a variety of reasons for shut–downs on such dates, in light of the fact that
several paper mills located in different parts of North India, who were all members of
NIPMA, were shut–down on same/similar dates, such reasons put forth by OP–67 are
hardly believable and seem nothing more than an afterthought.
108.13 In the WhatsApp group “NEWS Paper Mills”, Mr. B. B. Gupta of OP–79 had also
shared a message on 14.04.2017 informing the prices of different grades of Kraft Paper
of OP–79 and informing its shut–down schedule from 02.05.2017 to 06.05.2017. The
plant of OP–67 was also shut from 03.05.2017 to 05.05.2017. When Mr. Atul Bansal of
OP–67 was confronted with the said message, he stated that Mr. B. B. Gupta may have
shared the aforesaid message in the WhatsApp group.
108.14 In its suggestions/objections to the DG Report, OP–67 has also made other
submissions similar to those made by the other OPs, especially OP–65. The same have
already been dealt with in the earlier parts of the present order.
Case No. 24 of 2017 219

108.16 With respect to penalty, OP–67 made several submissions which were largely similar
109. OP–68 (RAC Paper Ltd.)
109.1 It is noted from the DG Report that Mr. Ajay Mittal and Mr. Manoj Gupta, Directors
of OP–68, were members of WhatsApp Group “NEWS Paper Mills”, wherein
collective shut–down of mills took place. Mr. Mittal, in his statement recorded before
the DG, also admitted that in the said WhatsApp group, the members used to discuss
the prices of Kraft paper. It is also noted from the DG Report that Mr. Gaurav Mittal,
Accounts Officer of OP–68 and nephew of Mr. Ajay Mittal, was also a member of
WhatsApp Group “NEWS Paper Mills”. He was involved in sending messages
regarding price increase of OP–68 to the dealers.
109.2 Mr. Gaurav Mittal, in his statement recorded before the DG, admitted that in the said
WhatsApp group, the members used to exchange messages regarding prices of Kraft
Paper, meetings of NIPMA and collective shut–down of mills. He also admitted that
OP–68 was a member of NIPMA. Mr. Gaurav Mittal also stated as follows:
“Q19. I put to you that Kraft Paper mill owners across Northern India region
collectively increase the price of Kraft Paper where RAC also increased the
price during 2017, 2018 and 2019 as per the decision of NIPMA. What you
have to say on this?
Ans. I admit that RAC has also increased/decreased the price of Kraft Paper
during the above periods. I sent price hike/decrease messages to RAC’s
customers as per the directions of Shri Ajay Mittal, Director.
Q21. What are the functions of NIPMA?
Ans. As per my knowledge NIPMA is a paper Mill Association which is formed
to discuss matter related to pollution, market related matters such as demand
and supply, rate of Kraft Paper etc.
Case No. 24 of 2017 220

Q22. After attending the meeting did Shri Ajay Mittal, Director ever
communicated you decisions of NIPMA?
Ans. Yes, Shri Ajay Mittal communicated me the decisions of NIPMA such as
price increase/decrease of Kraft Paper. Accordingly, I sent price hike/decrease
communications of Kraft Paper to RAC’s customers.”
109.3 It is also noted from the WhatsApp messages of Mr. Gaurav Mittal that on
27.12.2017, he sent the following identical message of price increase to OP–68’s
dealers which was also sent by other paper mills such as OP–65, OP–67, OP–69, OP–
70, OP–77 and OP–78:
“Dear dealers we have increased 2000 per ton immediately (total Rs.4000) due
to unexpected rise in raw materials and uncertainty of production in the month
of January so please take orders accordingly and obliged. Further rise is
expected in the month of January. Thanks regards RAC Papers Limited”.
109.4 It is also noted that Mr. Gaurav Mittal had sent a message on 13.05.2017 to the
dealers regarding increase in the price of Kraft Paper of OP–68 by ₹1 per kg from
15.05.2017 and further ₹1 per kg from 02.06.2017 and also informed about shut–down
of mill from 02.06.2017 to 06.06.2017 to one of its dealers, Shri Radha Vallabh
Enterprises. It is noted that, during the said period, as shown earlier, other paper mills
in U.P. were also shut, as decided by NIPMA. When Mr. Gaurav Mittal was confronted
with the said message, he admitted that he had sent the said message and production
was also shut on the said dates.
109.5 In the earlier part of the present order, it has also been noted that the shut–down dates
of OP–68 matched with the shut–down dates of other paper mills such as OP–64, OP–
65, OP–66 and OP–67. When Mr. Ajay Mittal was asked about the same, he stated that
the matching thereof is a mere coincidence.
109.6 It is also noted from the DG Report that the shut–down of OP–68 from 21.01.2016 to
26.01.2016 matched the shut–down declared by NIPMA for five days from 21.01.2016.
When Mr. Mittal was asked about the said shut–down, he stated that the reason for the
said shut–down was “strike”.
Commission finds that OP–68 was part of the discussions held at NIPMA regarding
price increase of Kraft paper and collective shut–down of paper mills, and it also
Case No. 24 of 2017 221

followed the directions issued by NIPMA, fully or partially, in this regard. Such
conduct of OP–68 amounts to indirectly determining the sale prices of Kraft paper in
110. OP–69 (Siddheshwari Industries Private Limited)
110.1 It is noted from the DG Report that Mr. Deepak Bansal, Mr. Shishir Sangal and Mr.
Sushil Kumar (also a Director of OP–77), Directors, were members of WhatsApp
Group “NEWS Paper Mills”, wherein discussions regarding price of Kraft paper, price
of raw material waste paper and collective shut–down of mills took place. Mr. Bansal,
in his statement recorded before the DG, admitted that these three Directors were a part
of the said group and that in the group, members discussed “technical issues, latest
development in the paper industry, present scenario of Kraft Paper, rate of waste
paper, price of Kraft Paper, shut–down of mills, pollution related issues etc.”
110.2 When Mr. Bansal was confronted with the following message posted by Mr. Pankaj
Aggarwal, President of NIPMA, in NEWS WhatsApp Group on 20.03.2018 at
06:57:02:
“Decision of today’s meeting:

1. Shut from 2nd to 7th April
2. Re.1 increase in finish paper
3. An increase of Re.1 from 2nd April by shutting down
Regards
Pankaj Agarwal
President”
he stated that “I admit that the above message was sent by Shri Pankaj Aggarwal and I
may have read the message at that time. I agree that in the said group members
exchanged the messages regarding price hike of Kraft Paper and shut–down of mill.”
110.3 From the mobile phone of Mr. Deepak Bansal, a message dated 11.04.2019 sent by
Mr. Neeraj Goel of OP–70 was discovered which stated as follows:
Case No. 24 of 2017 222

The above message hints that there was some decision taken by competitors including
OP–69 and OP–70 on pricing which was required to be conveyed to the customers.
110.4 When Mr. Bansal was confronted with the above message, he gave an evasive answer
that he could not recollect.
110.5 It is also noted from the DG Report that the mill of OP–69 was shut from 20.01.2016
to 24.01.2016 and 02.06.2017 to 06.06.2017, which dates match the shut–down dates
declared by NIPMA. Also, the manufacturing plant of OP–69 was shut from
20.01.2016 to 24.01.2016, 15.02.2016 to 20.02.2016, 23.03.2016 to 27.03.2016,
11.05.2016 to 15.05.2016, 02.05.2017 to 04.05.2017, 02.06.2017 to 06.06.2017 and
02.05.2018 to 05.05.2018, during which period the manufacturing plants of OP–64 to
OP–68 were also shut–down, fully or partially.

those made by the other OPs. The same have already been dealt with in the earlier parts
of the present order.
110.8 With respect to penalty, OP–69 made several submissions which were largely similar to
those made by the other OPs in the matter.
Case No. 24 of 2017 223

111. OP–70 (Tehri Pulp and Paper Limited)
111.1 It is noted from the DG Report that Mr. Rakesh Kumar, Mr. Sushil Agarwal and Mr.
Neeraj Goel, Directors, were members of WhatsApp Group “NEWS Paper Mills”,
and collective shut–down of mills took place.
111.2 Mr. Rakesh Kumar, in his statement recorded before the DG, admitted that he was a
part of the said group and that in the group, “members exchanged the price of Kraft
paper” and “members shared the price of Kraft Paper, price of waste paper and
shutting down schedules of mills”.
111.3 Mr. Neeraj Goel, in his statement recorded before the DG, also admitted that he used
to attend two–three meetings of Kraft paper mills owners every year at Hotel Godwin
in Meerut. In these meetings, apart from common industry issues, members used to
discuss prices of Kraft paper as well as prices of raw material i.e., waste paper. He
admitted that he was a member of WhatsApp groups “NEWS Paper Mills” and “Kraft
Paper Mills” and also a member of NIPMA.
111.4 It is noted that in the WhatsApp group “NEWS Paper Mills”, Mr. Pankaj Aggarwal,
President of NIPMA, had posted the following messages:
On 25.10.2017 at 21:05:35 (in Hindi):
“During PAPEREX, a meeting of the NEWS has been organized for Paper Mill
owners, Kraft paper makers from all over India, where everyone will discuss a
platform. The program is as follows ....
Date: 2 November 2017
Time: 7.00 pm
Location: Hotel Royal Plaza, Janpath, New Delhi
Agenda
Kraft paper of India got together….
1. Discussion on how to increase the price of Kraft Paper.
2. How to control waste paper prices.
3. Paper sold without credit facility.
4. The dealers who have defaulted Mill owner's money should be blacklisted.
5. Any other point from which the development of the paper industry can occur.
Please confirm the owner of all the craft making mills of NORTH, EAST,
WEST and SOUTH to ensure their participation in the said meeting.
Thank you
Case No. 24 of 2017 224

Pankaj Aggarwal
President
North India Paper Mill.”
On 25.10.2017 at 21:06:12 in continuation (in Hindi):
“Association”.
On 25.10.17 at 21:08:59 in continuation (in Hindi):
“Please confirm”
In reply to the above messages, Mr. Neeraj Goel replied on 26.10.2017 at 07:40:17:
“Confirm pankaj bhai”.
111.5 When Mr. Neeraj Goel was asked about the same, he admitted that he attended the
above meeting in which Kraft paper mills owners across India and paper dealers also
participated and that in the “NEWS Paper Mills” WhatsApp group “members discussed
points related to price of finished paper, price of waste paper, collective shut–down of
mills, pollution related matters, delayed payments by dealers/corrugators, GST related
matters etc.”
111.6 It is also noted from the DG Report that Mr. Neeraj Goel himself also sent several
messages in “NEWS Paper Mills”, some of which are as follows:
(a) On 08.02.2014 at 05:15 p.m.:
(b) On 26.08.2014, “D/Sir, on request of various distributors and considering heavy

demand of Kraft, shut is postponed. New date of shut is from 12 noon of 1st
September to 12 noon of 6th September. Thanks Neeraj Goel.”
(c) On 27.10.2017 at 14:16:19:
Case No. 24 of 2017 225

(d) On 31.10.17 at 11:51:20
“Good” in reply to the message sent by Mr. K. Swaminathan of South India Kraft
Paper Mills Association that “Mr. Pankaj Agarwal Our Members from
Karnataka/Tamil Nadu/Kerala around 10–15 will be attending the meeting on 2nd
Nov 2017 at 7 pm. Swaminathan South Indian Kraft paper mills assn”.
(e) On 21.11.2017 at 12:50:08:
“Nice decision” in reply to the message sent by Mr. Om Prakash Rathi of OP–3 that
“Good morning Members. After deliberations with all regions our association has
decided to increase rates of finish Kraft paper by Rs 1250/– with immediate effect
from today. All are advised to issue circulars immediately. Regards Prakash Rathi
Maharashtra Paper Mills Association”.
Such messages of Mr Neeraj Goel show his support, involvement and co–ordination
with other associations for increase in prices of Kraft paper.
111.7 It is also noted from the DG Report that in “NEWS Paper Mills”, Mr. B. B. Gupta of
OP–79, also shared the following message:
When Mr. Rakesh Kumar was asked about the said message, he stated that “I cannot
recollect why such message was sent by Shri B. B. Gupta”. When Mr. Kumar was asked
if had ever objected regarding price fixing messages and shut–down messages
exchanged on “NEWS Paper Mills”, he answered “I have never objected the same”.
111.8 It is also noted from the DG Report that on 07.04.2018, OP–67 had sent a message to
one of the dealers of OP–70 mentioning that “Dear Dealers we wish to inform you that
due to increase in our cost of production we six mills have decided to increase 1 r/s per
Case No. 24 of 2017 226

KG in all qualities immediately further we will sit together on 28 to evaluate our
position and if require we will increase prices further so kindly place your orders
accordingly. Your support will he highly appreciable towards sustaining our industries.
Thanks, regards Genus Paper and Boards, Devpriya Industries Ltd., Tehri Pulp and
Papers Pvt. Ltd., Nikita Papers Ltd., Silverton Pulp and Papers Pvt. Ltd.”.
111.9 In this regard, all Mr. Kumar had to say was that “TPPL also might have increased
the price of Kraft Paper due to increase in the input cost”. However, Mr. Neeraj Goel,
when confronted with such message, admitted that “In the Kraft Paper industry it is not
possible to increase the price of Kraft Paper by a single unit, so in most of the
occasions Kraft Paper mills owners discuss together and try to implement the price
hike together so that it may succeed in the industry. …”
111.10 The following message sent by OP–70 through WhatsApp was also recovered by the
DG during the course of investigation:
Identical messages were also sent by certain other paper mills, i.e., OP–65, OP–67, OP–
68, OP–69, OP–77 and OP–78, to their dealers informing about the price increase.
When Mr. Somen Sinha, Marketing Manager of OP–70, was confronted with the above
message, he stated that “The above screen shot message was sent by Shri Vijay Singhal,
Marketing Employee of Neeraj Paper Marketing Limited to one of its dealers
mentioning the increase in the price of Kraft Paper in respect of TPPL. Since Neeraj
Paper Marketing Limited sell different paper products of various mills, Shri Vijay
Singhal put the message to show the hike in the price of Kraft Paper in respect of Tehri
Pulp & Paper Limited.”
111.11 It is also noted from the DG Report that the manufacturing plant of OP–70 was shut
from 22.01.2016 to 26.01.2016, 01.03.2017 to 05.03.2017, 08.04.2017 to 09.04.2018
and 03.06.2017 to 06.06.2017, during which period manufacturing plants of OP–64 to
OP–68 were also shut–down, fully or partially.
Case No. 24 of 2017 227

those made by the other OPs, especially OP–64. The same have already been dealt with
in the earlier parts of the present order.
111.14 In its supplementary suggestions/objections to the DG Report, OP–70 has, inter alia,
put forth multiple mitigating factors as to why, even if anti–competitive allegations
against it are proved, penalty should not be imposed.
112. OP–71 (Garg Duplex and Paper Mills Private Limited)
112.1 It is noted from the DG Report that Mr. Rajesh Jain (also Director of OP–66),
Director, was a member of WhatsApp Group “NEWS Paper Mills”, wherein
collective shut–down of mills took place.
112.2 In his statement recorded before the DG, Mr. Rajesh Jain admitted that he was a
member of “NEWS Paper Mills” and that in the said WhatsApp group, members used
to exchange messages regarding increase in price of Kraft paper, price of waste paper
and meetings of associations of paper mills.
112.3 It is noted from the DG Report that OP–71 increased the prices of Kraft paper on
many dates such as 28.01.2017 @ ₹0.75 per kg, 12.02.2017 @ ₹0.50 per kg,
09.03.2017 @ ₹2 per kg, 26.03.2017 @ ₹2 per kg, 26.05.2017 @ ₹0.50 per kg and
16.06.2017 @ ₹0.25 per kg. In these months, NIPMA had also decided to increase the
prices of Kraft paper. When Mr. Rajesh Jain was asked about the same, he admitted
Case No. 24 of 2017 228

that OP–71 increased the price of Kraft paper, although not exactly on the dates and
rates directed by NIPMA.
from 20.01.2016 to 26.01.2016, 15.02.2016 to 20.02.2016, 24.03.2016 to 27.03.2016,
10.05.2016 to 14.05.2016, 01.03.2017 to 05.03.2017, 05.04.2017 to 09.04.2017,
01.05.2017 to 07.05.2017 and 06.06.2017 to 09.06.2017, during which period
manufacturing plants of OP–64 to OP–68 and OP–70 were also shut–down, fully or
partially.
112.5 When Mr. Rajesh Jain was asked about the shut–down from 20.01.2016 to 26.01.2016
by the DG during which dates manufacturing plants of other mills in North India were
also shut and NIPMA had also declared a strike, Mr. Rajesh Jain replied that his
company’s manufacturing plant was shut due to Magh Mela, as directed by Central
Pollution Control Board/U. P. Pollution Control Board. However, the DG noted from
the information given by the company to the Excise Department that the reason for
shut–down mentioned to them was “maintenance”. Thus, evidently, the excuse of Magh
Mela given to the DG for shut–down was an afterthought of Mr. Rajesh Jain. When Mr.
Rajesh Jain was asked about the other shut–down dates matching, he stated that the
same is a mere coincidence.

of the present order. OP–71 also submitted that there are reasons for shut–down dates
of several Kraft paper mill in North India coinciding such as Kanwad Season, Kumbh
Mela, Magh Mela, Ganga River Cleaning Project, Directions from Pollution Control
Board, etc. which the DG ought to have considered rather than arriving at a finding that
mere coinciding of dates of shut–down of different Kraft paper mills means collusive
decision. Further, OP–71 submitted that there is no correlation between the price
increase directives of NIPMA and the actual price increases undertaken by OP–71.
112.7 In view of the Commission, even if the reasons put forth by the OPs for dates of their
shut–down coinciding at certain times is taken at face value, the dates of shut–down
matching at several other times remains unexplainable by the OPs. Further, mills
located in other North India regions and not in the State of Uttar Pradesh also remaining
Case No. 24 of 2017 229

shut during the similar period is also suspicious. Matching of such dates at times with
NIPMA directives also raises strong doubt. Therefore, the explanations for coinciding
dates of shut–down of various paper mills situated in North India, as put forth by
various OPs including OP–71, seem to be an afterthought and cannot be believed. Also,
though the price increases undertaken by OP–71 may not exactly match the price
increase directives of NIPMA, the same were definitely influenced by the decisions of
NIPMA which is evident from the statement of Mr. Rajesh Jain, Director of OP–71, as
noted above.
that OP-71 was part of the discussions held at NIPMA regarding price increase of Kraft
paper and collective shut-down of paper mills, and it also followed the directions issued
by NIPMA, fully or partially, in this regard. Such conduct of OP-71 amounts to
112.9 With respect to penalty, OP-71 made several submissions which were largely similar
113. OP–72 (Genus Paper and Boards Limited)
113.1 It is noted from the DG Report that Mr. Kailash Chand Agarwal, Managing Director
of OP-72, was a member of WhatsApp Group “NEWS Paper Mills”, wherein
collective shut–down of mills took place.
113.2 In his statement recorded before the DG, Mr. Agarwal admitted that he was a member
of “NEWS Paper Mills” and that in the said WhatsApp group, members used to
exchange messages regarding increase in price of Kraft Paper and collective shut–down
of mills.
Case No. 24 of 2017 230

113.3 In fact, in the said group, on 07.04.2018, OP–67 had sent a message to one of the
dealers of OP–70, stating that “Dear Dealers we wish to inform you that due to
increase in our cost of production we six mills have decided to increase 1 r/s per KG in
all qualities immediately further we will sit together on 28 to evaluate our position and
if require we will increase prices further so kindly place your orders accordingly. Your
support will he highly appreciable towards sustaining our industries. Thanks, regards
Genus Paper and Boards, Devpriya Industries Ltd., Tehri Pulp and Papers Pvt. Ltd.,
Nikita Papers Ltd., Silverton Pulp and Papers Pvt. Ltd.”.
113.4 This clearly shows that collective price increase was undertaken by these six Kraft
paper mills, including OP–72, in April 2018.
from 21.01.2016 to 26.01.2016, 24.03.2016 to 27.03.2016, 02.03.2017 to 05.03.2017
and 06.04.2017 to 09.04.2017, during which period, the manufacturing plants of OP–64
to OP–68 and OP–70 were also shut–down, fully or partially. It is also noted that from
20.01.2016 to 26.01.2016, shut–down was also declared by NIPMA and during this
period, the production of OP–72 was 97 MT, 43 MT, 6 MT, 4 MT, 16 MT and 178 MT
only respectively, compared to 321 MT on 20.01.2016 and 331 MT on 27.01.2016.
This shows that the manufacturing plant of OP–72 was substantially shut-down when
shut-down was declared by NIPMA.
113.6 When Mr. Agarwal was asked about the same, he mentioned the matching of shut–
down dates to be a mere coincidence. However, in the opinion of the Commission,
when shut–down schedules are exchanged on the WhatsApp group of which Mr.
Agarwal is a member and dates of shut of OP–72 are matching the shut–down dates
declared by NIPMA and observed by other paper mills, it cannot be believed that OP–
72’s shut–down dates are matching coincidentally.
113.7 In its suggestions/objections to the DG Report, OP–72 has made submissions similar
to those made by the other OPs. The same have already been dealt with in the earlier
parts of the present order. It has also submitted that there is no evidence on record
against it, as may be the case with other OPs, of its active participation in the
WhatsApp group “NEWS Paper Mills”. The DG has held OP–72 liable merely on the
basis of its membership in the said group. Further, it has submitted that at the time of
Case No. 24 of 2017 231

WhatsApp message dated 07.04.2018, its Kraft paper prices had in fact decreased and
not increased, as stated in the said message.
113.8 In the opinion of the Commission, being member of “NEWS Paper Mills”, OP–72
was privy to the information about price increase and collective shut–down being
exchanged on the said group. As such, its ability to act as an independent competitor in
the market stood compromised. Hence, such membership of OP–72 was likely to cause
AAEC in the Kraft paper mills market in India. There is no submission or evidence on
record that OP-72 had exited or ever objected to exchange of such messages in the
WhatsApp group.
114. OP–73 (Nikita Papers Limited)
114.1 It is noted from the DG Report that Mr. Ashok Kumar Bansal, Director, was a
member of WhatsApp group “NEWS Paper Mills”, wherein discussions regarding price
of Kraft paper, price of raw material waste paper and collective shut–down of mills
took place.
114.2 In his statement recorded before the DG, Mr. Ashok Bansal admitted that he was a
member of the WhatsApp group “NEWS Paper Mills” and that in the same, members
used to exchange messages regarding increase in price of Kraft paper and collective
shut–down of paper mills.
Case No. 24 of 2017 232

114.3 It is noted from the DG Report that in “NEWS Paper Mills”, on 20.03.2018, Mr.
Pankaj Aggarwal had sent a message regarding the decision taken by NIPMA to
increase the prices of Kraft Paper by ₹1 from 02.04.2018 by shutting down the mills.
The manufacturing plant of OP–73 was also shut from 03.04.2018 to 04.04.2018 and on
07.04.2018, OP–67 had sent a message to one of the dealers of OP–70 stating that
“Dear Dealers we wish to inform you that due to increase in our cost of production we
six mills have decided to increase 1 r/s per KG in all qualities immediately further we
will sit together on 28 to evaluate our position and if require we will increase prices
further so kindly place your orders accordingly. Your support will he highly
appreciable towards sustaining our industries. Thanks, regards Genus Paper and
Boards, Devpriya Industries Ltd., Tehri Pulp and Papers Pvt. Ltd., Nikita Papers Ltd.,
Silverton Pulp and Papers Pvt. Ltd.”. This clearly completes the chain of circumstances
which shows that OP–73 was involved in collective price increase of Kraft paper.
from 21.01.2016 to 26.01.2016, 15.02.2016 to 20.02.2016, 23.03.2016 to 26.03.2016,
10.05.2016 to 14.05.2016, 02.03.2017 to 04.03.2017 and 03.06.2017 to 04.06.2017
during which period the manufacturing plants of OP–64 to OP–68 and OP–70 were also
shut–down, fully or partially. It is also noted that, from 20.01.2016 to 26.01.2016, shut–
down was also declared by NIPMA.
114.5 When Mr. Ashok Bansal was asked about the same, he mentioned the matching of
shut–down dates to be a mere coincidence. However, in the opinion of the Commission,
when shut–down schedules are exchanged on the WhatsApp group of which Mr. Bansal
is a member and dates of shut-down of OP–73 match with the shut–downs declared by
NIPMA and observed by other paper mills, it cannot be the case that OP–73’s shut–
down dates match coincidentally.
114.6 When Mr. Ashok Bansal was asked about fixation of price of Kraft paper and
collective shut–down of mills on “NEWS Paper Mills”, he stated as follows:
“I think that exchanging the price of Kraft Paper and price of waste paper are
not wrong, but in my opinion collective shutting down of mills is wrong.
I did not think of leaving the above WhatsApp group. I admit that by continuing
to be a member of the above WhatsApp group I have made a mistake.
Case No. 24 of 2017 233

I have never objected to such messages to save myself from any kind of
disputes.”
to those made by the other OPs, especially OP–65 and OP–71. The same have already
been dealt with in the earlier parts of the present order.
115. OP–74 (Dev Priya Industries Private Limited)
115.1 It is noted from the DG Report that Mr. Ashok Kumar Gupta, Managing Director, was
a member of the WhatsApp group “NEWS Paper Mills”, wherein discussions regarding
price of Kraft paper, price of raw material waste paper and collective shut–down of
mills took place, as well as of a WhatsApp group “NCR Paper Mills Committee”,
wherein issues regarding price of Kraft paper as well as waste paper were discussed. He
was also a member of other WhatsApp groups of paper mill owners like “NCR PNG
Group”, “NCR Paper Mill Association” and “Paper Pollution Group”.
115.2 It is noted from the DG Report that in “NEWS Paper Mills”, on 23.02.2017, Mr.
Arvind Agarwal of OP–65 put messages regarding OP–65’s price increase. In response
to the same, Mr. Ashok Gupta showed his approval by putting an emoji. When Mr.
Gupta was confronted with the said message, he admitted that he gave his approval to
price increase by adding the emoji.
Case No. 24 of 2017 234

115.3 Further, it is noted that on 07.04.2018, OP–67 had also sent a message in “NEWS
Paper Mills” stating that “Dear Dealers we wish to inform you that due to increase in
our cost of production we six mills have decided to increase 1 r/s per KG in all
qualities immediately further we will sit together on 28 to evaluate our position and if
require we will increase prices further so kindly place your orders accordingly. Your
support will he highly appreciable towards sustaining our industries. Thanks, regards
Genus Paper and Boards, Devpriya Industries Ltd., Tehri Pulp and Papers Pvt. Ltd.,
Nikita Papers Ltd., Silverton Pulp and Papers Pvt. Ltd.”. The said message clearly
indicates that the aforesaid six paper mills decided to collectively increase the price of
Kraft paper.
115.4 When Mr. Gupta was asked about the same, he stated that “I have not attended any
meeting on 28th regarding increase of price of Kraft Paper”. However, he admitted
that “Yes, I shared the price of Kraft Paper if Maruti ask me” and “Yes I have shared
price of Kraft Paper if any mill ask to me”. Thus, clearly, OP–74 used to share the
prices of its Kraft paper with other paper mills including OP–67, when they asked.
from 15.02.2016 to 16.02.2016 and 23.03.2016 to 25.03.2016, during which period the
manufacturing plants of OP–64 to OP–68 and OP–70 were also shut–down, fully or
partially.
Case No. 24 of 2017 235

116. OP–75 (Haripur Paper Company)
116.1 It is noted from the DG Report that Mr. Sumit Garg, Partner, was a member of the
paper, price of raw material waste paper and collective shut–down of mills took place.
He was also a member of certain other groups of paper mills such as “Panjab Kraft
Paper Mills”, “Baddi Kraft” and “Kraft Boards Mill Owners”.
116.2 In his statement recorded before the DG, Mr. Garg admitted that he was a member of
several WhatsApp groups and that in said groups, members used to exchange messages
regarding increase in price of Kraft paper and collective shut–down of mills. When
confronted with certain messages exchanged in “NEWS Paper Mills”, Mr. Garg also
admitted that “I admit that the paper mills of different regions used to discuss the
collective shut–down of plant, collective increase of the price of Kraft Paper, fixing the
price of waste paper and also about the meetings. I was one of the members of the
group. HPC have never shut–down our mill according to the group. However,
regarding price hike, HPC may have sent price increase messages to the dealers and
customers as per the decision in the group on certain occasions but I am not sure
whether the price hike was implemented or not.”
116.3 In the Information filed before the Commission, the Informants had filed a price
increase circular dated 06.03.2017 of OP–75 to show that the paper mills in North India
were increasing the price of Kraft paper in collusion. When Mr. Garg was confronted
with the said circular, he confessed that “The paper mills of North India may have
asked the other paper mills to increase the price of Kraft Paper in the dates and rates
as mentioned above but my company increase the price as per the market condition. We
generally try to match the rates of UP paper mills.”
116.4 When Mr. Garg was asked about fixing price of Kraft paper and collective shut–down
of mills on “NEWS Paper Mills”, he stated as follows:
Case No. 24 of 2017 236

“I admit that members of the above WhatsApp group including GPMA and
NIPMA used to exchange price hike of Kraft Paper and waste paper and
shutting down of mills. I have also put the above message to congratulate Shri
Sunil Agarwal on becoming President of GPMA.
I admit that I was a member of aforesaid WhatsApp group and members
exchanged price of Kraft Paper, price of waste paper and shut–down of mills.”
116.5 In its suggestions/objections to the DG Report, OP–74 made several submissions
similar to those made by the other OPs, especially OP–65 and OP–71. The same have
already been dealt with in the earlier parts of the present order. It also submitted that it
is situated in the State of Himachal Pradesh which is a completely separate geographic
market having different competitors than Kraft paper mills situated in the geographic
region of the State of Uttar Pradesh. As no other Kraft paper mill out of 50 others
situated in the State of Himachal Pradesh has been included by the DG as part of its
investigation, inclusion of OP–75 in the present case is also fallacious. If OP–75 tried
to base its decisions of price increase on the basis of decisions taken by Kraft paper
mills of Uttar Pradesh, it will be in a disadvantageous position qua the other paper mills
situated in the State of Himachal Pradesh.
116.6 In the opinion of the Commission, the geographic location of OP–75 is not of much
relevance given the fact that its representative Mr. Sumit Garg has admitted that he was
one of the members of the “NEWS Paper Mills” WhatsApp group where members
exchanged prices of Kraft Paper, discussed price of waste paper and collective shut–
down of paper mills and that OP–75 may have sent price increase messages to the
dealers and customers as per the decisions posted in the group on certain occasions.
Clearly, from time to time, the price increase decisions of OP–75 were influenced by
decisions of NIPMA as communicated in the said group.
Case No. 24 of 2017 237

117. OP–76 (Silvertoan Papers Limited)
117.1 It is noted from the DG Report that Mr. Amit Garg, Director, was a member of the
WhatsApp Group “NEWS Paper Mills”, wherein discussions regarding price of Kraft
He was also a member of WhatsApp groups “NCR PNG” and “NIPMA”.
117.2 In his statement recorded before the DG, Mr. Garg admitted that he was a member of
the WhatsApp group “NEWS Paper Mills” and that in the said group, members used to
exchange and share their prices of Kraft paper, price of waste paper and collective
shut–down of mills. In the said group, Mr. Garg also posted the following message on
15.12.2017:
“Dear dealers, due to changes in the market and sudden rise in costing of
paper mills, we are force to increase our prices of finished goods in the market.
Kindly oblige placing orders at new rates. So we have increase our prices by
Rs.2/– per kg with immediate effect. Please booking (with size only) according
new rate.”
Regarding the above message, Mr. Garg, in his statement before the DG, acknowledged
that “I have also exchanged certain messages including price hike circular of my
company on the said group 15.12.2017 at 17:42:04. I have shared my consent on many
occasions regarding the price hike decision of the members by putting the emoji
(thumbs up). I have shared the said price hike intimation only to follow others.”
from 01.03.2017 to 05.03.2017 during which period the manufacturing plants of OP–64
to OP–68 and OP–70 were also shut–down, fully or partially. In the “NEWS Paper
Mills” group of which Mr. Garg was a member, Mr. Pankaj Aggarwal, President of
NIPMA, had also posted the following message regarding the said shut–down:
Case No. 24 of 2017 238

“[25/02/17, 21:46:23] Pankaj Aggarwal Paper Up: आज की NIPMA की मीट िं ग
[25/02/17, 21:46:46] Pankaj Aggarwal Paper Up: १ मार्च से ५ मार्च तक सभी टमल
बिंद”
118. OP–77 (Sidharth Papers Private Limited)
118.1 It is noted from the DG Report that Mr. Sushil Kumar Bansal, Director, was a
member of the WhatsApp group “NEWS Paper Mills”, wherein discussions regarding
price of Kraft paper, price of raw material waste paper and collective shut–down of
mills took place. Mr. Bansal was also one of the Directors of OP–69.
118.2 Mr. Sushil Bansal sent, inter alia, the following messages in “NEWS Paper Mills”:
(a) On 06.04.2018 at 03:32:04 p.m.:
Dear sir Due to continuous hike in the prices of raw materials, fuel and
other inputs, we r compelled to share some partial burden on the shoulders
of our Prestigious Dealers/Consumers by increasing Rs.1000/MT price of
our all quantities Kraft paper with effect from 9th of April, 18.
(b) On 05.11.2016 at 12:07:26:
Case No. 24 of 2017 239

Dear Dealer As u r well aware of the prevailing critical condition of the
Kraft market and it's a bitter fact that mills have reached on ventilator
system and almost on last breaths. On the other hand raw material prices r
on continuous increase so we have no other alternate left either to increase
prices by Rs 250 pmt wef 10th of November.. Rs 250 pmt wef 15th of
November.. Rs 250 pmt wef 20th of November.. Rs 250 pmt wef 25th of
November Making a total increase of Rs 1000pmt We request u to
understand and cooperate by giving orders accordingly. Thanks
(c) A thumbs up emoji in response to price increase request dated 30.01.2017
of OP–65.
(d) On 18.06.2017 stating that “that's cool” in reply to a message sent by Mr.
B.B. Gupta of OP–79 that “22 people attended today's meeting. It was
decided that till 30 June dispatch the current rates will be valid. Due to the
implementation of GST from July 1, a meeting will be held in the last week
of June to decide on new rates. Thank you Pankaj Aggarwal President”.
(e) A thumbs up emoji in response to price increase dated 23.02.2017 of OP–

65.
In fact, OP–77 also increased its price w.e.f. 25.02.2017. The price increase of OP–77
in March 2017 also corresponded with those of other paper mills when it was decided
by the paper mills in North India to increase the price of Kraft paper.
118.3 In his statement recorded before the DG, Mr. Bansal gave evasive answers; however,
on being confronted with the backup of “NEWS Paper Mills”, he accepted his
membership therein.
118.4 It is also noted from the DG Report that Mr. Rajeev Gagneja, Sales Manager of OP–
77, had sent the following message dated 27.12.2017 to the dealers, which was identical
to the price increase messages sent by other paper mills:
Case No. 24 of 2017 240

When Mr. Gagneja was confronted with the same, he stated as follows:
“I admit that I sent the above message showing the price hike (present hike of
Rs.2000/– PMT and total hike of Rs.4000/– PMT) of Kraft Paper in respect of
Siddeshwari Industries Pvt. Ltd. (SIPL). and Sidharth Papers Pvt. Ltd. (SPPL)
which are engaged in the manufacturing of Kraft Paper alone. Myself being an
employee of SPUPL sent the said message for the associate/sister company as
per the instruction of Shri Sushil Bansal. In Siddeshwari Industries Pvt. Ltd.
and Sidharth Papers Pvt. Ltd. marketing issues are being handled by their
director itself. Whenever Shri Sushil Bansal or Directors of two other
companies namely SIPL and SPPL directed me to issue price hike/decrease
communication I used to communicate the same to the dealers/customers.”
118.5 The similarity of price increase messages of OP–77 with OP–65, OP–67, OP–68, OP–
70 and OP–78 proves that they were involved in collective price increase, otherwise the
identical messages for price increase would not have been sent.
118.6 When Mr. Bansal was asked about fixing price of Kraft paper and collective shut–
down of mills on “NEWS Paper Mills”, he stated that “I found exchanging the price of
Kraft paper and waste paper are proper, but collective shut–down of mills is wrong”.
paper and it also followed the directions issued by NIPMA, fully or partially, in this
regard. Such conduct of OP-77 amounts to indirectly determining the sale prices of
Kraft paper in contravention of the provisions of Section 3(3)(a) of the Act, read with
119. OP– 78 (Mahalaxmi Kraft and Tissues Private Limited)
Case No. 24 of 2017 241

119.1 It is noted from the DG Report that Mr. Ajay Kumar Garg, Director, was a member of
WhatsApp Group “NEWS Paper Mills”, wherein discussions regarding price of Kraft
119.2 In the said group, Mr. Pankaj Aggarwal, President of NIPMA, had sent a message
dated 20.03.2018 (extracted in the earlier part of this order), regarding a decision taken
in a NIPMA meeting regarding shut–down of mills from 02.04.2018 to 07.04.2018,
increasing rate of kraft paper by ₹1 per kg and further increase of rate by ₹1 per kg after
shut–down from 02.04.2018.
119.3 Mr. Mohd. Arif, former employee of OP–78, also sent the following message to its
dealers in 2018:
“Sir, Plants will be under maintenance shut from 2/4 till 7/4… Due to current
loss in the industry we are forced to increase 1 rupee & further another rupee
from 2/4… hope you will cooperate with us Regards Mahalaxmi paper mill”
119.4 When confronted with the above message sent by him, Mr. Arif admitted that “I have
sent the above messages to one of the dealers of MCTP regarding shut–down of mill
and increase in the price of Kraft Paper. … I used to communicate dealers/customers
price hike decision of MCTP as per the directions of Shri Ajay Kumar Garg. Since I am
not well versed in English the aforesaid message was not prepared by me.”
119.5 Thus, evidently, OP–78 followed the NIPMA directives of price increase by ₹1 per kg
and further increase by ₹1 per kg after shut–down, and collective shut–down of mills
from 02.04.2018 to 07.04.2018.
119.6 It is also noted from the DG Report that Mr. Mohd. Arif sent the following messages
to its dealers on 27.12.2019:
“Due to pollution problems and changes in our raw material cost we are
forced to increase the prices… Kindly book your orders in new rate. Our new
prices will be with addition of 2 Rs i.e. total Rs.4increase (2+2). We shall not
accept any order in old rate from now. Thanks & regards. Mahalaxmi paper
mill”
“Further plant will be shut from 15 to 30 of January bcoz of the order of hon.
Supreme court”
He also sent the following messages to Mr. Sandeep Kumar Mittal of one Shri Radha
Vallabh Enterprise on 27.12.2017:
Case No. 24 of 2017 242

“Due to pollution problems and changes in our raw material cost we are
forced to increase the prices… Kindly book your orders in new rate. Our new
prices will be with addition of 2 Rs i.e. total Rs.4 increase (2+2). We shall not
accept any order in old rate from now. Thanks & regards. Mahalaxmi paper
mill”
“Further plant will be shut from 15 to 30 of January bcoz of the order of hon.
Supreme court”.
Messages identical to the above were also sent in 2017 by other paper mills such as
OP–65, OP–67, OP–68, OP–69, OP–70 and OP–77 to their dealers.
119.7 When Mr. Arif was asked about such messages, he admitted in his statement before
the DG that the above messages were sent by him regarding shut–down of mill and
increase in the price of Kraft paper. However, he stated that he used to communicate
price hike decisions of OP–78 to the dealers/customers only as per the directions of Mr.
Ajay Kumar Garg.
119.8 Thus, the above messages clearly show that OP–78 was involved in collectively
increasing in the price of Kraft paper and shut–down of mills with other Kraft paper
mills.
119.9 In the WhatsApp group “NEWS Paper Mills”, it is also noted that Mr. Ajay Garg had
sent, inter alia, the following messages supporting other paper mills in price increase:
Case No. 24 of 2017 243

From the above messages, it can be seen that Mr. Ajay Garg, on 13.01.2017, requested
the paper mills to cooperate and understand that they should not increase the purchase
price of waste paper as suggested by some paper mills in the earlier message. Further,
he welcomed the suggestions of price increase by all paper mills on 30.01.2017, as
suggested by OP–65.
119.10 In its suggestions/objections to the DG Report, OP–78 also made submissions similar
120. OP–79 (Ashoka Kraft Paper Mills LLP)
120.1 It is noted from the DG Report that Mr. B. B. Gupta, Partner, was the admin and one
of the active members of WhatsApp Group “NEWS Paper Mills”, wherein discussions
regarding price of Kraft paper, price of raw material waste paper and collective shut–
down of mills took place. Many of the messages sent by him in the said group have
already been extracted in the earlier parts of the present order.
120.2 When Mr. Gupta was confronted with the fact that the name of WhatsApp group
“NEWS Paper Mills” means North, East, West and South, where paper mills across
India used to decide prices of Kraft paper and collective shut–down of mills, he
admitted that whenever the paper mills of North India decided to increase the prices,
Case No. 24 of 2017 244

they (he and Mr. Pankaj Aggarwal, President of NIPMA) used to inform in the said
WhatsApp group.
120.3 It is also noted from the backup of WhatsApp messages exchanged in the said group
that on 06.04.2018, Mr. B. B. Gupta had informed about the price increase of OP–79
and thereafter, the other paper mills had also increased the prices of their Kraft paper.
The relevant messages in this regard are as under:
120.4 Further, on 28.04.2018, Mr. B. B. Gupta had posted in the group the following
message regarding the decision taken by the house (NIPMA) about the prices of Kraft
paper from the following month:
When Mr. B. B. Gupta was confronted with the above message, he stated that a meeting
of NIPMA was held under the Presidentship of Mr. Pankaj Aggarwal in Meerut,
wherein it was decided to reduce the price of Kraft paper by ₹1 per kg. Mr. Gupta
claimed that he got the said message from Neeraj Marketing and forwarded the same in
the said group. Such statement of Mr. B. B. Gupta clearly shows that he was privy to
the price fixing decisions of Kraft paper taken by NIPMA.
120.5 Apart from the above, Mr. B. B. Gupta also shared many other decisions of NIPMA
as and when it decided to increase the prices of Kraft paper or collectively shut–down
the paper mills.
Case No. 24 of 2017 245

120.6 In its suggestions/objections to the DG Report, OP–79, like other OPs, argued that
there is no association existing by the name of NIPMA and there is no registration,
membership, bank account, etc. of the same. However, such argument taken by OP–79
is incorrect in view of the clear evidences against OP–63 gathered by the DG and
discussed above.
120.7 Even on 05.05.2018, Mr. B. B. Gupta shared the following message of Mr. Pankaj
Aggarwal, President of NIPMA, in “NEWS Paper Mills” regarding shut–down of mills
from the 2nd to 6th of every month for the next six months and no change in prices of
Kraft paper:
It is evident from the above WhatsApp messages that Mr. B. B. Gupta was an active
member of “NEWS Paper Mills” who used to regularly communicate regarding price
fixing of Kraft paper and collective shut–down of paper mills in the said group. Some
of the other WhatsApp messages exchanged by Mr. B. B. Gupta in “NEWS Paper
Mills” in this regard, are as follows:
Case No. 24 of 2017 246

Case No. 24 of 2017 247
120.8 It is also noted from the DG Report that on 19.01.2017, Mr. Nimish Shah of OP–6
informed in “NEWS Paper Mills” about shut–down schedule and price increase
decision of GPMA. Thereafter, Mr. B. B. Gupta, on 19.01.2017, added an emoji to
show his support for the said decision. He also requested Mr. Pankaj Aggarwal,
President of NIPMA, to do something for the North also. On this, Mr. Pankaj Aggarwal
suggested to hold a meeting which was also supported by Mr. B. B. Gupta. These
messages clearly show that Mr. B. B. Gupta was involved in fixing the prices of Kraft
paper with other paper mills as well as NIPMA. The chain of such messages is as
under:
120.9 On certain occasions, Mr. B. B. Gupta also requested the paper mills in Assam to
increase their prices. As per the statement of Mr. Gupta before the DG, certain paper
mills from Guwahati, apart from his company, were also members of “NEWS Paper
Mills” WhatsApp group. One relevant message of Mr. Gupta in this regard is as under:
Case No. 24 of 2017 248

120.10 Mr. Gupta also used to inform the group about the prices of OP–79 as OP–79 used to
sell Kraft paper in North India also, apart from Assam. A message exchanged in this
regard, is as under:
120.11 The collusion and active involvement of Mr. B. B. Gupta is also noted from the fact
that apart from discussing/deciding price increase of Kraft paper and shut–down of
paper mills, Mr. Gupta also used to threaten paper mills who did not follow the
dictates/directions of NIPMA. On 18.02.2017, he informed the group that one of the
paper mills in Jaipur is not following the directions of shut–down and accordingly, he
solicited suggestions from Mr. Pankaj Aggarwal/ Bhushan to take action against the
said mill. Thereafter, the said mill owner replied that he is with the association. The
chain of messages in this regard, is as under:
Case No. 24 of 2017 249

120.12 It is also noted that on 28.03.2017, when some mill owner asked about the price
increase effected by mills in North India from January 2017, as decided in NIPMA
meeting, Mr. Gupta disclosed the price to be increased and the further increase of price
after shut–down. The said messages are as follows:
120.13 In its suggestions/objections to the DG Report, OP–79 argued that no discussions took
place in “NEWS Paper Mills” which can directly or indirectly impact competition in
the relevant market and the messages of Mr. B. B. Gupta only show that he used to
inform price increment of Kraft paper for general information with honest intention
which cannot be construed to be anti–competitive. As per OP–79, price discussions is
not anti–competitive, though fixing of price may be. OP–79 submitted that mere price
discussions do not amount to an “agreement” within the meaning of the Act and Mr. B.
B. Gupta was anyhow not authorised by OP–79 to indulge into the acts which he did.
Other arguments similar to those raised by the other OPs have also been raised by OP–
79.
120.14 In the opinion of the Commission, “price discussions” of Kraft paper in “NEWS
Paper Mills” WhatsApp group impacted the independence of competitor Kraft paper
mills in the market, and were likely to cause AAEC in the market. As such, these
discussions were in themselves anti–competitive in nature and amounted to an
“agreement” for the purposes of Section 3 of the Act. The agreement may not have
been to fix price of a particular commodity, but the agreement could have been to
simply collectively increase the prices by all paper mills. Since such conduct of OP–79
through its Partner Mr. B. B. Gupta is evident from the evidence available on record,
the submissions made by OP–79 that mere price sharing is not anti–competitive, hold
no merit.
Case No. 24 of 2017 250

121. OP–80 (Hyderabad Kraft Paper Mills Association)
121.1 It is noted from the DG Report that HKPMA is not a registered association and has no
by–laws. It has no regular office-bearers; however, Mr. Prem Paul Sharma of OP–81 is
the President of HKPMA, Mr. Deepak Chand Agarwal of OP–101 is its Vice President
and Mr. T. Anjani Kumar of OP–83 is the Secretary of HKPMA.
121.2 In his statement recorded before the DG, Mr. Prem Paul Sharma admitted that he is
the President of HKPMA; however, he stated that it is an unregistered association. He
also stated that generally, the paper mills meet under the banner of the association on
social occasions. Mr. Sharma admitted that the decisions taken in those meetings could
have been sent to other paper mills through e–mails or circulars, but he had no record.
However, Mr. Sharma admitted that, through these circulars, HKPMA informed the
paper mills about the rate at which raw material is to be purchased and the minimum
price for the sale of finished paper. He also disclosed that certain paper mills used to
follow the directions of association whereas a few did not.
121.3 During the course of investigation, the DG recovered several e–mails sent/received by
HKPMA, some of which are as follows:
(a) E-mail dated 21.09.2010 sent by Mr. Anjani Kumar, Secretary of HKPMA,
containing MoM of the 7th HKPMA meeting dated 13.09.2010 held at Hyderabad.
In the said meeting, members/attendees discussed and shared the selling price of
Kraft paper as well as purchasing price of waste paper. It was also decided to
increase the price of Kraft paper @ ₹500 across all BFs.
(b) E–mail dated 07.02.2013 containing MoM of 34th HKPMA meeting dated
03.10.2013. In the said meeting, members/attendees discussed and shared the
selling price of Kraft paper and purchasing price of waste paper.
Case No. 24 of 2017 251

(c) E–mails dated 03.07.2013 and 05.07.2013 sent by Mr. T. Anjani Kumar, Secretary
of HKPMA, to paper mills along with agenda of 31st HKPMA meeting held on
02.07.2013. Vide e–mail dated 05.07.2013, a revised MoM was sent. In the said
meeting, decision regarding increase in price of finished Kraft paper was taken
apart from discussing other pricing issues.
(d) E–mail dated 07.09.2013 sent by HKPMA to paper mills, wherein Mr. Anjani
Kumar, Secretary of HKPMA, informed that customers are accepting recent price
increase and also congratulated the mills for increase in price.
(e) E–mail dated 16.09.2013 along with trailing e–mails sent by HKPMA to paper
mills. In the trailing e–mails, price increase circular of OP–37 in furtherance of
GPMA circular dated 14.09.2013 was attached, and it was discussed by HKPMA to
implement the second price increase by HKPMA also.
(f) E–mail dated 07.10.2013 sent by HKPMA, wherein agenda and MoM of 34th
HKPMA meeting dated 03.10.2013 were attached. In the said meeting, it was
decided not to increase the price of Kraft paper but to hold on.
(g) E–mail dated 04.12.2013 sent by HKPMA, wherein minutes of joint meeting dated
07.08.2013 of Andhra Pradesh Recycle Paper Mills Association (‘APRPMA’) and
HKPMA at Hotel Gateway, Vijayawada, were attached. In this regard, Mr. Vivek
Gandhi, Managing Director of OP–82, explained that, in the said meeting, shut–
down schedule of mills in Hyderabad and Andhra Pradesh was jointly decided
because of shortage of raw material in addition to other issues. The mills were
directed to shut operations for at least 3–4 days in the first fortnight of December
2013 and 2–3 days in the second fortnight of December 2013. Members also
decided to reduce waste paper prices by ₹1,000 per ton in two phases. The members
discussed that the demand is dull and shutting down the Kraft mills is the only
solution to correct the demand supply gap.
(h) E–mail dated 30.01.2014 sent by HKPMA along with trailing e–mail dated
03.02.2014 regarding meeting held at Hyderabad along with Andhra Pradesh Kraft
paper mills on 07.02.2014, wherein APRPMA and HKPMA wanted to discuss how
to control the losses by either reducing the input cost or increasing the finished
goods’ price.
Case No. 24 of 2017 252

(i) Following e–mail dated 28.02.2014 sent by Mr. T. Anjani Kumar, Secretary of
HKPMA, to Mr. K. Swaminathan, Secretary of SIKPMA, and other paper mills,
whereby the agenda and MoM of 35th HKPMA meeting held on 24.02.2014 were
attached. In the said meeting, which was attended by 15 paper mills, HKPMA
decided to hold the waste paper price at a maximum of ₹11,200 per ton. The paper
mills also informed about their selling price of different grades of Kraft paper and
purchase price of waste paper, and it was decided to increase the price of finished
paper by ₹1,000 per ton with immediate effect.
When confronted with the above e–mail, Mr. Prem Paul Sharma, Secretary of
HKPMA, admitted that the said e–mail was sent to the paper mills by the
Case No. 24 of 2017 253

association (HKPMA) including to SIKPMA, and he also admitted the contents of
MoM of this meeting.
(j) E–mail dated 03.03.2014 issuing a circular by APRPMA (which is not an OP in this
case) to its members as well as to HKPMA, to shut–down the mills from
06.03.2014 to 10.03.2014. HKPMA, after receiving the said e–mail, forwarded it to
SIKPMA and other paper mills. The scanned copy of said e–mails are as under:
Case No. 24 of 2017 254

When Mr. Paul Sharma, President of HKPMA, was asked about the above e–mails,
he admitted that the mills used shut–down in the same way many times due to
shortage of waste paper as well as to control prices so that paper mills can purchase
waste paper at identical rates.
(k) E–mail dated 07.03.2014 sent by HKPMA to paper mills along with trailing e–
mails. In one of the trailing e–mails dated 03.03.2014, OP–102 had requested to
shut–down mills from 06.03.2014 to 10.03.2014. The e-mail was sent by OP–102 to
APRPMA which was in turn sent to HKPMA.
(l) E–mail dated 13.03.2014 sent by HKPMA to paper mills discussing invitation of
All India Kraft Papers conclave with Informants No. 1 and Informants No. 2 at
Hyderabad on 22.03.2014 and 23.03.2014. It was also discussed in the agenda about
Case No. 24 of 2017 255

the market strategy is to be adopted in the future, shortage of waste paper, credit
period etc.
(m) E–mail dated 27.03.2014 sent by Mr. T. Anjani Kumar, Secretary of HKPMA, to
Mr. K. Swaminathan, Secretary of SIKPMA, and other paper mills, whereby the
agenda and MoM of HKPMA and All India Kraft Paper Mills Association joint
meeting held on 22.03.2014 and 23.03.2014 was attached. It is noted from the said
e–mail that HKPMA, in this meeting, which was attended by 19 paper mills,
discussed various issues. The said meeting was also attended by Mr. K.
Swaminathan of SIKPMA.
(n) E–mail dated 19.04.2014 sent by HKPMA to paper mills attaching circular of
SIKPMA to reduce the price of waste paper by ₹500 PMT.
(o) E–mail dated 13.11.2014 sent by HKPMA, wherein gist of the meeting of SIKPMA
held on 08.11.2014 was attached. In the said meeting, several manufacturers of
Kraft paper from HKPMA were also invited and many industry issues were
discussed.
(p) E–mail dated 28.01.2015 sent by HKPMA to manufacturers of Kraft paper, wherein
the MoM of 40th HKPMA meeting held on 22.01.2015 was attached. In the said
meeting, Kraft paper prices were discussed. However, no decision was taken
regarding price hike of Kraft paper.
(q) E–mail dated 03.03.2015 sent by HKPMA to manufacturers of Kraft paper, wherein
the MoM of 41st HKPMA meeting held on 02.03.2015 was attached. In the said
meeting, many common and technical issues were discussed. However, the
members present also informed their purchase price of raw material and selling
price of Kraft paper.
(r) E–mail dated 26.08.2015 sent by HKPMA to paper mills attaching the MoM dated
24.08.2015 of HKPMA. In the said meeting, prices of raw material and Kraft paper
were discussed and it was decided to reduce the purchase price of waste paper by
₹1,000 per ton and hold the price hike.
Case No. 24 of 2017 256

(s) E–mail dated 08.02.2016 sent by HKPMA to paper mills attaching the MoM of
HKPMA meeting dated 30.01.2016. In the said meeting, prices of raw material and
Kraft paper were discussed and it was decided to hold the current prices.
(t) E–mail dated 07.03.2016 sent by HKPMA to paper mills attaching the MoM of
HKPMA meeting held on 03.03.2016. In the said meeting, prices of raw material
and Kraft paper was discussed and it was decided to increase the price of finished
paper by ₹1,000 PMT across all BF.
121.4 When Mr. Paul Sharma, President of HKPMA, was confronted with allegations of
collective price increase by HKPMA members, he admitted that the association used to
receive suggestions from its members about increase in price of Kraft paper due to
increase of cost. Accordingly, the association increased the price of finished paper
whenever there was an increase in the cost. Mr. Sharma confessed that due to shortage
of raw material, paper mills were in losses for last 4–5 years, and therefore, to save the
paper mills from losses, HKPMA used to decide to collectively increase the price of
finished paper and shut–down the mills.
121.5 In his statement recorded before the DG, Mr. T. Anjani Kumar, Secretary of HKPMA
also admitted as follows:
“In the meetings members discuss about the general issues pertaining to Kraft
paper mills including technical issues, pollution related issues, raw material
and trends in imported and local raw material, shortage of raw material, how
to overcome shortage and increase or decrease of the Kraft paper price,
shutting down of mills, power shortage etc. All the decisions are taken by the
majority of the members present in the meeting of Hyderabad Kraft Paper
Mills Association.
Yes, members discuss the price of Kraft paper, raw material, power etc. In the
said meeting members also discuss the increase and decrease of the Kraft
paper price. Sometime the members collectively decided to increase or
decrease the price but all the members never followed the same.”
121.6 It is noted from the DG Report that in the HKPMA meeting dated 01.12.2015, the
members even decided to keep caution deposits with the association and penalise the
mills if they deviate from the decisions of HKPMA.
121.7 It is also noted from the DG Report that Mr. T. Anjani Kumar, Secretary of HKPMA,
had formed a WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA” on which,
Case No. 24 of 2017 257

discussions and decisions on price of finished Kraft paper and collective shut–down of
paper mills took place. Mr. Prem Paul Sharma was also an active member of the said
group.
121.8 Further, it is noted from the DG Report that Mr. Prem Paul Sharma and Mr. T. Anjani
Kumar had attended meetings of GPMA dated 15.02.2017 and 15.03.2017, wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held. In this
regard, Mr. Satyanarayan Agarwal of OP–4, Mr. Nimish Shah of OP–6, Mr. Sundeep
Shah of OP–7 and Mr. Sunil Agarwal of OP–26 had also given statements.
121.9 Also, when Mr. Paul Sharma, President of HKPMA, was asked about his relationship
with Mr. K. Swaminathan, Secretary of SIKPMA, he stated that Mr. Swaminathan is
his old friend though he could not recollect whether HKPMA sent any e–mail to him or
not.
121.10 In view of the above statement of Mr. Prem Paul Sharma, President of HKPMA, as
well as documentary evidences on record including MoMs of HKPMA meetings and e-
mails evidences, it is clear that HKPMA was involved in deciding prices of finished
Kraft paper and collective shut–down of mills and that it also used to coordinate with
other associations like GPMA and SIKPMA in this regard. It also used to put pressure
on the members to follow such decisions under the threat of imposition of penalty.
that OP–80 indulged in discussions with its members as well as with other associations
like GPMA and SIKPMA for increasing the prices of Kraft paper and for collective
shut–down of paper mills, and also issued directives in this regard, which conduct
supply and market of Kraft Paper in contravention of the provisions of Section 3(3)(b)
of the Act, read with Section 3(1) of the Act, from at least 2010 to 2017.
122. OP–81 (Sharma Papers Pvt. Ltd.)
122.1 As detailed above, Mr. Prem Paul Sharma, Managing Director of OP–81, was the
President of HKPMA. As such, he was actively involved in the anti–competitive
activities of HKPMA, which included holding meetings to discuss and decide price
Case No. 24 of 2017 258

hike of Kraft paper and collective shut–down of paper mills, and communicating the
same to HKPMA members and others.
122.2 Further, it is noted from the DG Report that OP–81, vide e–mail dated 09.03.2017,
had informed its customers about increase in price of finished paper by ₹4 per kg.
When Mr. Prem Paul Sharma was asked about the said e–mail, he, in his statement
recorded before the DG, admitted sending the same to its customers and also admitted
that the same rate was approximately increased by other paper mills also.
122.3 In his reply to the DG Report, OP–81 submitted that its mill has been closed down
permanently during COVID–19 pandemic and it be exempted from the present
proceedings.
that OP-81 was part of the discussions held at HKPMA regarding price increase of
issued by HKPMA, fully or partially, in this regard. Such conduct of OP-81 amounts to
123. OP–82 (Tirumala Venkateshwara Paper Board Pvt. Ltd.)
123.1 It is noted from the DG Report that representatives of OP–82, namely, Mr. Vivek
Gandhi, Managing Director and Mr. Mahesh Gandhi, attended meetings of HKPMA
dated 02.07.2013, 22.01.2015, 03.03.2015, 24.08.2015 and 03.03.2016, wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held. Mr.
Vivek Gandhi also attended All India Kraft Papers Conclave at Hyderabad on
22.03.2014 and 23.03.2014 where further discussions in this regard, took place. He was
also a member of the WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA”,
wherein members used to discuss about price hike of Kraft paper, raw material prices
and shut–down schedule of Kraft paper mills.
123.2 Further, from Mr. Vivek Gandhi’s e-mail account, e–mails dated 03.07.2013,
05.07.2013, 07.09.2013, 16.09.2013, 07.10.2013, 04.12.2013, 30.01.2014, 28.02.2014,
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07.03.2014, 13.03.2014, 27.03.2014, 19.04.2014, 13.11.2014, 28.01.2015, 03.03.2015,
26.08.2015, 08.02.2016 and 07.03.2016 sent by HKPMA were recovered.
123.3 In his statement recorded before the DG, Mr. Vivek Gandhi, also acknowledged as
under:
“…I attend the meetings of Hyderabad Kraft Paper Mills Association. …

We generally discuss the availability of raw material and its pricing. We also
discuss how to control the increasing price of raw material for domestic waste
i.e. local OCC. We also discuss about the import of OCC, Upgradation of
machines, technical issues. Based on the said input cost, sometimes we discuss
in the association about the selling price of the Kraft paper also. Sometimes,
due to non–availability of raw material, we also discuss in the association
about the shut–down of the mills to control the raw material prices and
availability. These meetings are attended either by me or by Shri Mahesh
Gandhi.
My entity R.A. Kraft Paper Pvt. Ltd is dealing in trading of Kraft paper of
various mills. The customers insists for written price increase letters from the
manufacturers in case of price increase. Through email dated 29.06.2013, we
informed customer S J Packaging that certain mills have increased the price.
The mills increased the identical price because if they increase differently then
they will not get the price accepted in the market.
My entity R.A. Kraft Paper Pvt. Ltd is dealing in trading of Kraft paper of
various mills. The customers insists for written price increase letters from the
manufacturers in case of price increase. Through email dated 29.06.2013, we
informed customer Century Packaging and Chaitanya Packaging that certain
mills have increased the price. The mills increased the identical price because
if they increase differently then they will not get the price accepted in the
market. In the said email, we also attached the circular of price increase by
GPMA which was forwarded to us by Best Paper Mill and Super Deluxe Paper
Mills Pvt. Ltd. as they are based in Vapi.”
123.4 When confronted with various e-mails received from HKPMA, Mr. Vivek Gandhi
acknowledged receipt of such e-mails and also admitted attending meetings of HKPMA
from time to time by either himself, or Mr. Mahesh Gandhi. He also admitted
implementing the decisions of price hike and/or collective shut–down by OP-82, from
time to time, as per HKPMA directives.
123.5 Regarding All India Kraft Papers Conclave, of which invite was sent to OP–82 by
HKPMA through e–mail dated 13.03.2014, Mr. Vivek Gandhi acknowledged that “I
Case No. 24 of 2017 260

recollect that a conclave of all paper mills from across India was held. The conclave
was attended by me. I recollect that in the said conclave, issues regarding controlling
of waste price were discussed. The corrugators were also a part of the conclave and all
the discussions took place in their presence.”
123.6 When confronted with e–mail dated 30.04.2015 sent by him to Mr. Mahesh Gandhi
and Mr. Manoj Gandhi wherein a few images and the backup of WhatsApp Group
“Hyd Kraftmills Assn HKPMA” were attached wherein prices of Kraft paper and shut–
down of mills were discussed, Mr. Vivek Gandhi admitted that “I confirm the backup of
the WhatsApp group. I was a member of the said group and left the group about 6
months ago. All the members of HKPMA were members of this group. In the said
group, the members used to discuss about price hike, raw material price and shut–
down schedule to control raw material price and fill the demand supply gap.” Some of
the messages which formed part of this backup, are extracted hereunder:
Case No. 24 of 2017 261

The above messages clearly reflect the action of HKPMA for shut–down of mills. Even
Mr. Vivek Gandhi had shut OP–82’s mill on 25.04.2015 and confirmed in the group.
123.7 When confronted with several other e–mails received by OP–82 from HKPMA, Mr.
Gandhi admitted receipt of the same and explained their context.
123.8 When confronted with price hike circular dated 10.03.2017 issued by OP–82 to
increase the prices of all variety of Kraft paper from February 2017 till 10.03.2017, Mr.
Vivek Gandhi stated that “The price of the Kraft paper was increased not only by my
company but by other manufacturers also due to increase in input cost. The circular
was issued on the demand of corrugators.”
123.9 It is also noted from the DG Report that Mr. Vivek Gandhi had attended meeting of
GPMA dated 07.04.2017 wherein discussions regarding fixing of prices, shutting down
of mills, etc., were held. Also, when confronted with an e–mail dated 22.06.2015 sent
by GPMA to him and Mr. Mahesh Gandhi wherein GPMA attached a circular
regarding joint meeting between paper mills of Gujarat, Maharashtra, Andhra Pradesh,
Madhya Pradesh and Chhattisgarh in which all members expressed their view that cost
of production has increased, Mr. Vivek Gandhi stated that “I admit that a meeting as
above was held and I received the said circular from GPMA.”
123.10 It can also be seen from the statement of Mr. Vivek Gandhi that he disclosed that he
attended the last meeting of HKPMA around 6–8 months ago and confessed that he was
not aware that discussing the price of raw material, finished paper and collectively
increasing/decreasing price and shut–down of mills is anti–competitive. He further
confessed that OP–82 was involved in such activities as a routine and in a casual
manner since 2012–13 till April 2018 when the DG Office served a notice on HKPMA.
123.11 In its suggestions/objections to the DG Report, OP–82 submitted that corrugators

always insist on collective price revisions by all Kraft paper mills and agree to an
increase in price only after confirmation from other mills. Further, it submitted that
many Hyderabad mills have closed their operations during COVID–19 pandemic and
others are also struggling to survive in this economy. It also pleaded that the Kraft
paper mills were not aware of competition law before receiving notices from the DG
office.
Case No. 24 of 2017 262

123.12 The Commission observes that any of the above submissions taken by OP–82 does
not justify cartelisation by Kraft paper manufacturers for price increase or collective
shut–down. Ignorance of law can never be an excuse. Further, businesses facing
difficulties can at best constitute a mitigating factor for calculation of penalty, but does
not justify doing of an illegal act.
124. OP–83 (Sai Tirumala Papers Private Limited)
124.1 As detailed above, Mr. T. Anjani Kumar, Executive Director of OP–83, was the
Secretary of HKPMA. From the DG Report, it is noted that Mr. Kumar operated the e-
mail ID of HKPMA. As such, he was actively involved in the anti–competitive
activities of HKPMA, which included holding meetings to discuss and decide price
hike of Kraft paper and collective shut–down of paper mills, and communicating the
same to HKPMA members and others.
124.2 In his statement recorded before the DG, Mr. T. Anjani Kumar acknowledged his role
as the Secretary of HKPMA as under:
“Hyderabad Kraft Paper Mills Association is an unregistered Association.

APCMA (Andhra Pradesh Corrugated Box manufacturers Association) wanted
to conduct joint events like cricket matches, family get–together, conclaves etc.
between Corrugators and paper mills; there was a need for a name for the
Kraft paper mill group. So, it was jointly decided to have the name of
Hyderabad Kraft Paper Mills Association and the logo for the Hyderabad
Kraft Paper Mills Association was also designed developed and handed over
by APCMA to Kraft Paper mill owners.
… I don’t know exactly when Hyderabad Kraft Paper Mills Association was
formed. From 2011 onwards I am actively involved in this association.
Case No. 24 of 2017 263

I am not a selected or appointed Secretary but people and Kraft paper mill
owners call me Secretary of Hyderabad Kraft Paper Mills Association as I
used to do all the work as Secretary in order to help the President of the
Hyderabad Kraft Paper Mills Association who is not well versed with
writing/sending emails/letters in English.
… At times I used to write Secretary of Hyderabad Kraft Paper Mills
Association in letters where joint events were conducted.
In the meetings members discuss about the general issues pertaining to Kraft
paper mills including technical issues, pollution related issues, raw material
and trends in imported and local raw material, shortage of raw material, how
to overcome shortage and increase or decrease of the Kraft paper price,
shutting down of mills, power shortage etc. All the decisions are taken by the
majority of the members present in the meeting of Hyderabad Kraft Paper
Mills Association.
Yes, members discuss the price of Kraft paper, raw material, power etc. In the
said meeting members also discuss the increase and decrease of the Kraft
paper price. Sometime the members collectively decided to increase or
decrease the price but all the members never followed the same.
I operate the email ID of HKPMA i.e … ”
124.3 Further, regarding OP–83 being a part of HKPMA, Mr. T. Anjani Kumar stated as
under:
“My company regularly received minutes of the meetings from HKPMA

wherein HKPMA members had taken the decision to collectively increase of
the price of Kraft Paper as well as on certain occasions collectively decrease
the price of Kraft Paper also regarding collective shut–down of mills.”
124.4 When confronted with various e–mails received by OP–83 regarding price hike of
other Kraft paper mills, and several e–mails recovered from the e–mail ID of HKPMA
which was being operated by Mr. T. Anjani Kumar, including e–mails received from
OP–83 regarding price increase of other paper mills, e–mails received from other Kraft
paper mills themselves including from OP–83 regarding their price increase, e–mails
from SIKPMA regarding its meetings wherein price increase was discussed, and e–
mails from SIKPMA about GPMA price increase, Mr. Anjani Kumar admitted that he
forwarded/received the said e–mails, received/sent by various mill owners, to HKPMA.
He stated that the paper mills used to inform their prices to each other so that the
customers can accept price increase as they were reluctant to increase the price if not
Case No. 24 of 2017 264

increased by all. He also admitted that he forwarded e–mails received from SIKPMA to
HKPMA. He admitted that SIKPMA sent the said e–mails to various mills, including to
OP–83, to inform them about the price hike, even of GPMA, but he claimed that
HKPMA members did not implement any of the GPMA circulars as HKPMA used to
decide the prices of Kraft paper without being influenced by GPMA.
124.5 It is, however, clear from the above e–mails that OP–83 was in regular touch with
SIKPMA regarding its price increase and also kept a watch on GPMA price increase. In
fact, Mr. Omprakash Rathi of OP–3, Mr. Satyanarayan Agarwal of OP–4, Mr. Nimish
Shah of OP–6 and Mr. Sundeep Shah of OP–7 mentioned in their statements recorded
before the DG that certain GPMA meetings where price hike of Kraft Paper and
collective shut–down of mills was discussed, were also attended by Mr. T. Anjani
Kumar of HKPMA. Also, Mr. Anjani Kumar himself admitted that he attended the
meeting dated 14.12.2013 of SIKPMA to discuss the prevailing market conditions of
Kraft paper along with Mr. Mahesh Gandhi and Mr. Vivek Gandhi of OP–82 and Mr.
Deepak Agarwal of OP–101, during which meeting attendees discussed about price of
Kraft paper, maintaining price of waste paper, etc. He also admitted that he attended
certain other meetings of SIKPMA along with Mr. Prem Paul Sharma, President of
HKPMA.
124.6 Mr. Anjani Kumar also admitted before the DG that he is a member of two WhatsApp
Groups consisting of Kraft paper mills, namely, “Hyd Kraftmills Assn HKPMA” and
“NEWS Paper Mills”. In this regard, Mr. Anjani Kumar stated as follows:
“… I have created the WhatsApp group namely “Hyd Kraftmills Assn

HKPMA” on 21.04.2015, I subsequently changed the name to “HKPMA” and
still continue to be the Admin of the WhatsApp group. In this group most of the
members were Kraft Mill owners from Telangana state.
In the WhatsApp group “Hyd Kraftmills Assn HKPMA” members discussed
points regarding increase of rate of Kraft Paper, their rates of Kraft Paper,
rate of waste paper, collective shutting down of mills, meetings of HKPMA,
pollution issues, technical matters, GST related points, information regarding
Kraft Paper industry in other regions, present and future scenario of Kraft
Paper industry etc.
… I being the Admin of “Hyd Kraftmills Assn HKPMA” I used to encourage
mill owners coming under HKPMA to shut the mills collectively, mostly owing
to shortage of waste paper, shortage of power supply etc. Those Kraft Paper
Case No. 24 of 2017 265

mills used to display their current electricity meter reading in order to show
that they have implemented the collective shutting down decision as directed by
HKPMA. My company also shut on 25th and 26th of April 2015 and displayed
the same in the WhatsApp group. The members also used to discuss about the
collective increase/decrease of the price of Kraft Paper and the price at which
the waste paper to be purchased.”
124.7 Mr. Anjani Kumar also admitted to have attended several meetings of HKPMA when
confronted with their MoMs wherein price increase of finished Kraft paper and
collective shut–down of mills was discussed. He also stated that “I was not aware that
holding meetings with the other Kraft Paper mills, taking decision for collective shut–
down of mills and collective increase the price of Kraft Paper is illegal. I was not
aware that exchanging price information and taking decision regarding price hike over
WhatsApp groups as shown to me was also illegal. Only after receiving your notice, I
came to know that my activities are not in consonance with the Competition Act. … The
collective price hike decision taken in the meetings of HKPMA since 2009–10 till
receipt of your notice was the compulsion of paper mills as we were suffering losses
and the customers were not accepting any price hike. Therefore, we were forced to take
the decision for collective increase of the price of Kraft Paper. However, said collective
increase of the price has never resulted into super normal profit. …”

125. OP–84 (Sri M.K. Paper Mills Pvt. Ltd.)
Case No. 24 of 2017 266

125.1 It is noted from the DG Report that representatives of OP–84, namely, Mr. Punit
Kedia and his uncle Mr. Susheel Kedia, attended meetings of HKPMA dated
shutting down of mills, etc., were held. Mr. Punit Kedia was also a member of the
WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA”, wherein members used to
discuss about price hike of Kraft paper, raw material prices and shut–down schedule of
Kraft paper mills.
125.2 In his statement recorded before the DG, Mr. Punit Kedia, acknowledged as under:
“I have attended the Hyderabad Kraft Paper Mills Association (HKPMA)

meeting during 2014 couple of occasions. My company was a member of
HKPMA since 2013. Mill owners from the state of Telangana used to attend
HKPMA meetings. Shri Paul Sharma was the president of HKPMA then. In the
HKPMA meetings mill owners used to discuss about the general issues faced
by mill owners, payment issues, shortage of waste paper, price of Kraft paper,
supply of finished product on credit etc. HKPMA is the part of South Indian
Kraft Paper Mill Association (SIKPMA).
I attended 1st meeting of HKPMA in 2014. The president of Shri Prem Paul
Sharma and Secretary of the association Shri Anjani Kumar. In the meetings of
the association, the members including me on behalf of my company used to
discuss many issues of common interest like recovery of payments from
defaulters. The other issues were relating to the hike in the price of Kraft paper
of all paper mills of HKPMA. Sometimes we also used to discuss about the
price at which the waste paper was to be purchased. Further the members of
my company also used to discuss about the collective shut–down schedule of
mills. The last meeting of HKPMA was attended by me in October 2017. I also
recollect that on many occasions during the said period the Kraft paper mills
including my company used to collectively issue the price hike circular to the
customers on the basis of the decision taken in the meetings of HKPMA. I also
recollect that there was a WhatsApp group namely “HydKraftmills Assn
HKPMA” created by Anjani Kumar on which the Paper mills including myself
used to discuss about the shut–down of mills, price hike of Kraft paper and
price of waste paper. …”
125.3 When confronted with various MoMs and e–mails of HKPMA recovered from the e–
mail account of OP–84, as well as price increase e–mails sent by OP–84 to various
customers, Mr. Kedia admitted to receiving the said e–mails/MoMs and the fact that
representatives of OP–84, including himself at times, attended such meetings of
HKPMA. He also admitted that the decisions conveyed in such meetings/e–mails of
Case No. 24 of 2017 267

HKPMA were implemented by OP–84 from time to time, however, considering other
factors as well. He also stated that shut–down schedule as communicated by HKPMA
were not always implemented by OP–84; OP–84 only sometimes implemented the
shut–down schedule conveyed by HKPMA.
125.4 Regarding WhatsApp Group “Hyd Kraftmills Assn HKPMA”, Mr. Kedia stated that
“I admit and confirm that this is the same WhatsApp group which I have referred
earlier on this group and the members including my company used to discuss the price
of Kraft paper, price of waste paper and shut–down schedule of mills.”
125.5 It is also noted from the DG Report that Mr. Sushil Kedia of OP–84 even attended a
meeting of GPMA dated 07.04.2017, wherein discussions regarding fixing of prices,

126. OP–85 (Decor Paper Mills Limited)
126.1 It is noted from the DG Report that the representative of OP–85, namely, Mr. Ritesh
Jaiprakash Agarwal, Director, attended meetings of HKPMA, inter alia, dated
down of mills, etc., were held. Further, from OP-85’s e-mail account, e–mails dated
07.10.2013, 22.10.2013, 28.02.2014, 07.03.2014, 13.03.2014, 04.12.2014 and
03.03.2015 sent by HKPMA were recovered.
Case No. 24 of 2017 268

126.2 In his statement recorded before the DG, Mr. Ritesh Agarwal, acknowledged as
under:
“Yes, I have attended some of the meetings of HKPMA. So far as I can

remember I have attended 3 to 4 meetings during 2010 & 2011 and 3 to 4
meetings during 2015 & 2016 of HKPMA. During 2017 also I have attended 1
meeting of HKPMA in which paper mills from other states too attended. Shri T.
Anjani Kumar, Secretary HKPMA used to inform me about the HKPMA
meetings through SMS and telephone. After the meetings Shri T. Anjani Kumar,
Secretary of HKPMA sent MOM to me on certain occasions.
Mill owners from Telangana state used to attend the HKPMA meetings and
members used to discuss matters related to price of finished paper, price of
waste paper, pollution/electricity/sale tax/GST related matters, collective shut–
down of mills etc.”
126.3 When confronted with the above e–mails received by OP–85 from HKPMA including
its MoMs, Mr. Agarwal admitted to having receiving the said e–mails and sharing the
price of OP–85’s Kraft paper in such meetings. He also admitted to having attended
certain meetings of HKPMA from 2015 to 2017 and that, at times, he forwarded
HKPMA’s e-mails regarding price increase to OP–85’s dealers. Mr. Agarwal also
stated that dinner for the HKPMA meeting dated 03.03.2016 was hosted by OP–85.
However, Mr. Agarwal refused that any of the shut–down directives of HKPMA were
implemented by OP–85. From OP-85’s e-mail account, other incriminating e-mails
were also recovered by the DG.
126.4 It is however, noted from the DG Report that in the HKPMA meeting dated
20.04.2015 which was attended by Mr. Agarwal, members discussed and shared the
prices of Kraft Paper and waste paper and during the meeting, it was also decided to
shut the mills for 8 days (25.04.2015, 26.04.2015, 01.05.2015, 02.05.2015, 09.05.2015,
10.05.2015, 16.05.2015 and 17.05.2015) in one month to control waste paper prices and
shortage of orders. It was also decided in the meeting to monitor the shut–down of
mills. The manufacturing plant of OP–85 was also partially shut during these days.
When Mr. Agarwal was confronted with the e–mail regarding the said meeting, he
admitted that his company received the above e–mail and that his plant was also
partially shut on 10.05.2015 and 16.05.2015, though that was due to some technical
problem. Such explanation given by Mr. Agarwal does not seem to be believable in
light of the fact that he was an attendee to HKPMA meeting dated 20.04.2015.
Case No. 24 of 2017 269

126.5 Similarly, it is also noted from the DG Report that in the HKPMA meeting dated
22.07.2016, it was decided to shut–down the member mills for 6 days each during
August, 2016 (07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016, 27.08.2016 and
28.08.2016) and September, 2016 (04.09.2016, 10.09.2016, 11.09.2016, 18.09.2016,
24.09.2016 and 25.09.2016). It is also seen from the RG–1 Register filed by OP–85 that
its manufacturing plant was also shut during 24.09.2016 and 25.09.2016 (2 days).
126.6 In its suggestions/objections to the DG Report, OP–85, apart from making

submissions similar to those made by the other OPs, also submitted that it was not a
part of any WhatsApp group but had only attended a few meetings of HKPMA. It had
never replied to any e–mail received from HKPMA nor implemented any directives of
HKPMA. Mere sharing of rates or matching of shut–down dates on a couple of odd
occasions does not mean that OP–85 was part of the cartelisation.
126.7 In the opinion of the Commission, attending HKPMA meetings and receiving e–mails
therefrom, OP–85 was privy to the information about price increase and collective
shut–down being exchanged between HKPMA members. As such, its ability to act as
an independent competitor in the market stood compromised. Further, matching of
dates of shut–down of OP–85 on certain occasions with those declared by HKPMA also
does not seem to be a mere coincidence.
127. OP–86 (Bahubali Boards Private Limited)
127.1 It is noted from the DG Report that the representative of OP–86, namely, Mr. Vivek
Agarwal, Managing Director, attended meetings of HKPMA dated 24.02.2014,
fixing of prices, shutting down of mills, etc., were held. He was also a member of the
Case No. 24 of 2017 270

Kraft paper mills. Further, from OP-86’s e-mail account, e–mails dated 08.02.2016 and
127.2 In his statement recorded before the DG, Mr. Vivek Agarwal, acknowledged as under:
“Yes, I know HKPMA is an association of the Kraft paper manufactures

coming under Telangana State. I have attended a maximum of 4 to 5 meetings
of HKPMA since 2013 – 2014 till 2017 – 2018.
In the HKPMA meetings in which I have attended members discussed issues
regarding unloading of Kraft paper in the manufacturing plant, delay in
payment, pollution norms, waste paper/Kraft paper price, collective shutting
down of mills etc.
...
… I admit that BBPL has received circular/MOM/communication from
HKPMA by email. …
After seeing Exhibit – 1, I recollect that members also discussed price of Kraft
paper and collective shut–down of mills in the aforesaid WhatsApp group (Hyd
Kraft Mills Assn HKPMA).”
127.3 When confronted with MoMs of various HKPMA meetings, Mr. Agarwal admitted
that he attended several such meetings and also shared the price of Kraft paper of OP–
86 with HKPMA.
127.4 It is also noted from the RG–I Register filed by OP–86 before the DG that the
manufacturing plant of OP–86 was shut on 25.04.2015, 26.04.2015, 01.05.2015,
02.05.2015, 09.05.2015 and 10.05.2015, which dates partially match with the shut–
downs declared by HKPMA in the meeting dated 20.04.2015 i.e. 25.04.2015,
26.04.2015, 01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 16.05.2015 and
17.05.2015.
127.5 Further, it is noted from the backup of the WhatsApp group “Hyd Kraft Mills Assn
HKPMA” of which Mr. Agarwal was a member that Mr. Agarwal had informed the
group about shut–down of his paper mill on 25.04.2015 for 10 days when the others
were also shutting down their mills as per the decision of HKPMA.
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128. OP–87 (Classic Papers)
128.1 It is noted from the DG Report that the representative of OP–87, namely, Mr. T.
Madhusudan Rao, Managing Partner, attended meetings of HKPMA dated 03.10.2013,
shutting down of mills, etc., were held. He was also a member of the WhatsApp group,
namely, “Hyd Kraftmills Assn HKPMA”, wherein members used to discuss about price
hike of Kraft paper, raw material prices and shut–down schedule of Kraft paper mills.
Further, from OP-87’s e-mail account, e–mails dated 07.09.2013, 07.10.2013,
05.03.2014, 27.03.2014, 24.04.2015, 07.10.2015, 03.12.2015 and 07.03.2016, sent by
HKPMA were recovered.
128.2 In his statement recorded before the DG, Mr. T. Madhusudan Rao, acknowledged as
under:
“Myself or CP is not an official member of any association of Kraft paper

manufacturers but I have attended 7 to 8 meetings of Hyderabad Kraft Paper
Mills Association (HKPMA) since 2013. Last meeting of HKPMA was attended
by me during September, 2019 (Appx.). Representing CP, myself alone has
attended all the above meetings of HKPMA.
I used to get telephone calls from Shri Prem Paul Sharma, President of
HKPMA or Shri T. Anjani Kumar, Secretary of HKPMA. I have received most
of the copies of MOMs of HKPMA after the meetings through CP’s email id i.e.
…
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In the HKPMA meetings in which I have attended, attendees discussed about
price of waste paper, price of Kraft Paper, collective shut–down of mills,
pollution related matters, GST matters, government related issues etc.
Yes, I am a member of the WhatsApp group namely “HKPMA” (formerly the
name of the group was “Hyd Kraft Mills Assn HKPMA”).
In the above WhatsApp group members discussed about price of waste paper,
price of Kraft Paper, collective shut–down of mills, pollution related matters,
government related issues etc.
Yes, I have shared CP’s price increase/decrease decision of Kraft Board to
Shri Anjani Kumar, Secretary of HKPMA.”
128.3 When confronted with MoMs of HKPMA meetings recovered from the e–mail
account of OP–87, Mr. Rao admitted that he attended several such meetings and also
shared the price of OP–87’s Kraft paper therein. He also stated that OP–87
implemented various price hike and collective shut–down decisions of HKPMA
(regarding Kraft board) partially because OP–87 is mainly involved in manufacturing
White Duplex Board and production of Kraft Board is quite limited.
128.4 It is also noted that OP–87 had also received e–mails dated 05.03.2014 and
07.03.2014 from HKPMA along with trailing e–mails in which OP–102 had conveyed
the decisions of APRPMA regarding shut–down of their mills for 4 days from
06.03.2014 to morning of 10.03.2014 for controlling the price of waste paper. OP–87
also received an e–mail dated 18.08.2015 from OP–97 wherein OP–97 appealed to all
Kraft paper manufacturing mills in Telangana and Andhra Pradesh and suggested to
stop production of Kraft paper at least for 2 days per week for a minimum period of one
month so that Kraft paper mills can bring down the price of waste paper and thereby
reduce the selling price of Kraft paper.
128.5 Upon inspection of the mobile phone of Mr. Rao, he was also confronted with
backups of the following three WhatsApp chats and in this regard, he stated as follows:
(a) WhatsApp chat with Mr. Suresh Tirupur where Mr. Rao had forwarded Mr.
Suresh’s price hike circular for Duplex Board of GVG Paper Mills Pvt. Ltd., Tamil
Nadu and OP-109. Mr. Rao, in this regard, stated that he received the above
circulars from Divya Shakti Papers, Hyderabad (Duplex Board manufacturer) to
inform price hike decisions of the above companies.
Case No. 24 of 2017 273

(b) WhatsApp chat with Mr. Vinod Sattur Venkayeswara, an employee of Sattur
Venketeshwara Paper Mill Limited, where Mr. Rao had sent a message on
03.02.2017 at 09:47 that “with immediate effect, due to steep increase in waste
paper prices and imported waste paper prices we are increasing the prices of Kraft
grades by Rs.2000 per ton and Rs.1000 per ton on all white Duplex grades. Classic
paper and Viva boards”. Mr. Rao, in this regard, admitted that he sent the above
message to Mr. Vinod Sattur Venkayeswara to inform about the price hike decision
of OP–87.
(c) WhatsApp chat with Mr. Malu Paper Narayan, employee of Malu Paper, where Mr.
Malu Paper Narayan had sent a message on 04.10.2019 at 12:04 that “may reduce
300 more tom or day after” in response to which Mr. Rao replied that “yes sir. We
too reduced 200 yesterday”. Mr. Rao, in this regard also, admitted that he sent the
above message to inform Mr. Malu Paper Narayan that OP–87 had also reduced the
purchase price of old news print.
128.6 When Mr. Rao was confronted with the backup of WhatsApp group, namely, “Hyd
Kraftmills Assn HKPMA” wherein he sent a message on 24.04.2015 at 10:59 that
“Dear Anjani Kumar Garu, as suggested by you, we are clubbing our shut with
association decided dates, i.e. tomorrow and day after tomorrow… Classic Papers”, on
25.04.2015 at 07:18 that “as said we stopped our mill at 6 am… Classic Papers …”, on
25.04.2015 at 10:28 sharing OP–87’s meter reading, and on 25.04.2015 at 11:26 that
“Yes… Classic” in response to the message sent by Mr. T. Anjani Kumar of OP-85
requesting all the mills to confirm that their mills are shut, he admitted that he sent the
above messages in support of the collective shut–down decisions of HKPMA and sent
the meter reading of OP-87’s manufacturing plant showing a shut–down.
128.7 In its suggestions/objections to the DG Report, apart from making various

submissions similar to those made by the other OPs, OP–87 also submitted that it has a
very minor production of Kraft paper and is mainly a producer of White Duplex Board.
Any WhatsApp messages exchanged by Mr. Rao regarding shut–down was to satisfy
others only.
128.8 In view of the Commission, there is clear admission by Mr. Madhusudan Rao of OP–
87 regarding OP–87 not only attending meetings of HKPMA and receiving e–mails
Case No. 24 of 2017 274

from it, but also OP–87 at least partially implementing price hike and collective shut–
down decisions of HKPMA (regarding Kraft board), specifically because OP–87 is
mainly involved in manufacturing White Duplex Board and production of Kraft paper
is quite less. As such, evidently, it was a part of the cartel arrangement between
HKPMA and its members.
129. OP–88 (Karanja Industries Private Limited)
129.1 It is noted from the DG Report that representatives of OP–88, namely, Mr.
Vijaykumar Patil, Director and Mr. Raghavendra Patil, attended meetings of HKPMA
dated 23.03.2014, 20.04.2015, 01.12.2015 and 22.07.2016, wherein discussions
regarding fixing of prices, shutting down of mills, etc., were held. Further, from OP-
88’s e-mail account, e–mails dated 27.03.2014, 24.04.2015 and 03.12.2015, sent by
HKPMA were recovered.
129.2 In his statement recorded before the DG, Mr. Vijaykumar Patil, stated as follows:
“As far as I know KIPL is a member of South India Kraft Paper Manufacturers
Association (SIKPMA) since 2010 till today. I do not know whether KIPL was
a member of SIKPMA before 2010. KIPL is not a member of any other
association of Kraft Paper manufacturers.”
129.3 When confronted with various MoMs of HKPMA meetings and other e–mails
regarding price increase recovered from OP–88’s e–mail ID, Mr. Patil admitted that
OP–88 is a member of HKPMA and that he, Mr. Raghvendra Patil, and/or other
persons from OP–88 attended several meetings of HKPMA. Mr. Patil admitted that
prices of Kraft paper and collective shut–down of mills was discussed in HKPMA
meetings. He also admitted that price of finished Kraft paper as well as waste paper was
Case No. 24 of 2017 275

shared by him in those meetings and that from time to time, OP–88 also implemented
the price hike of Kraft paper decisions and partially, collective shut–down decisions,
taken in HKPMA meetings.
129.4 It is also noted from the RG–1 Register filed by OP–88 that its manufacturing plant
was closed on 11.02.2017, 12.02.2017, 13.02.2017 (partially shut), 14.02.2017,
15.02.2017 (partially shut), 11.03.2017 and 13.03.2017 to 15.03.2017 which dates
partially correspond with the HKPMA shut–down dates 11.02.2017 to 15.02.2017 (5
days) and 11.03.2017 to 15.03.2017 (5 days).
130. OP–89 (Venkata Padmavathi Paper Mills Private Limited)
130.1 It is noted from the DG Report that the representative of OP–89, namely, Mr. Venkata
Rao Pathuri, Managing Director, attended the meeting of HKPMA dated 30.01.2016,
He was also a member of the WhatsApp group, namely, “Hyd Kraftmills Assn
HKPMA”, wherein members used to discuss about price hike of Kraft paper, raw
material prices and shut–down schedule of Kraft paper mills. Further, from OP-89’s e-
mail account, MoMs dated 24.08.2015, 07.11.2015 and 30.01.2016 sent by HKPMA
were recovered.
130.2 In his statement recorded before the DG, Mr. Venkata Rao Pathuri, acknowledged as
follows:
“Yes, I know Hyderabad Kraft Paper Mills Association (HKPMA). The

President of HKPMA is Shri Prem Paul Sharma. I have attended 4 to 5
meetings of HKPMA. In the meetings of HKPMA members discuss about
Case No. 24 of 2017 276

current market scenario, price of Kraft Paper, price of waste paper, pollution
related matters etc.
So far as I can remember I was a member of WhatsApp group namely
“HKMPA”. Further, I am not a member of any other WhatsApp group in
which Kraft paper manufacturers are/were also members. In the said
WhatsApp group members used to discuss about price of Kraft Paper, price of
waste paper, collective shut–down of mills etc.
Yes, I have shared the price of Kraft Paper and price of waste paper of VPPML
to HKPMA in the meetings attended by me.”
130.3 It is also noted from the DG Report that in the WhatsApp group “Hyd Kraftmills Assn
HKPMA”, Mr. Anjani Kumar, Secretary of HKPMA, had sent a message on
24.04.2015 at 11:05 that “Tomorrow is 25th our first shut day. Let’s all say yes for 25th
and 26th shut” and further on 24.04.2015 at 13:29 “Yes from Mr.
VenkatRaoVenkataPadmavathi”. It is also noted from the DG Report that the
manufacturing plant of OP–89 was shut during the period 13.04.2015 to 30.04.2015.
130.4 When confronted with the MoM dated 24.08.2015 of joint meeting of HKPMA and
APRPMA where it can be seen that OP–89 had shared the price of Kraft paper and
waste paper and in which meeting, HKPMA had decided to shut–down the member
mills for 8 days during September 2015 and 9 days during October 2015, Mr. Pathuri
admitted that he shared the price of Kraft paper and waste paper to HKPMA though he
did not attend the said meeting. When he was asked about the confirmation given by
him to Mr. Anjani Kumar regarding shut–down decided in the said meeting, Mr.
Pathuri admitted that he shared the shut–down information of his company with Mr.
Anjani Kumar over telephone. He also admitted that his plant was shut during the
period 11.09.2015 to 18.09.2015, 23.09.2018 to 14.10.2015, 21.10.2015 to 25.10.2015
and 29.10.2015 to 02.11.2015. However, he stated that the shutdown of plant during the
aforesaid period was not in furtherance of HKPMA directive.
130.5 In the view of the Commission, when the shut–down schedule of OP–89 matches with
the HKPMA decision and Mr. Pathuri has also admitted that he received the
information about the said shut–down from HKPMA, it cannot be believed that OP–89
shut the plant due to shortage of raw material and not because of HKPMA directive.
Case No. 24 of 2017 277

130.6 When confronted with certain other MoMs of HKPMA meetings recovered from the
e–mail account of OP–89, Mr. Pathuri admitted that OP–89 increased the price of Kraft
paper and partially followed the price hike decisions of HKPMA.

131. OP–90 (Kanishka Paper and Pulp Private Limited)
131.1 It is noted from the DG Report that representatives of OP–90, namely, Mr. Shamji
Patel, Managing Director, his son Mr. Paresh Kumar, Director and Mr. Mehul Patel,
Director, attended meetings of HKPMA dated 03.10.2013, 24.02.2014, 23.03.2014,
20.04.2015, 24.08.2015, 07.11.2015, 30.01.2016, 03.03.2016, 22.07.2016 and
were held. Mr. Shamji Patel was also a member of the WhatsApp group, namely, “Hyd
Kraftmills Assn HKPMA”, wherein members used to discuss about price hike of Kraft
paper, raw material prices and shut–down schedule of Kraft paper mills.
131.2 In his statement recorded before the DG, Mr. Shamji Patel, acknowledged as follows:
“Yes, I know HKPMA and also attended 3 to 4 meetings of the above

association every year. …
In the HKPMA meetings in which I have attended, members discussed about
price of Kraft Paper, price of waste paper, collective shut–down of mills,
pollution related matters, GST matters etc.
Yes, I am a member of the WhatsApp group namely “HKPMA” in this group
other Kraft Paper mill owners from Hyderabad are also members. Earlier
name of the above WhatsApp group was “HydKraftmills Assn HKPMA” which
Case No. 24 of 2017 278

was created by Shri T. Anjani Kumar, Secretary of HKPMA. I am a member of
the above WhatsApp group since 2015.
In the above WhatsApp group members discussed about price of Kraft Paper,
price of waste paper, collective shut–down of mills, HKPMA meetings,
pollution related matters, GST matters etc.
Yes this is the same WhatsApp group as stated by me in response to Q4 in the
said WhatsApp group members discuss the price of Kraft Paper, waste paper
and collective shutting down of mill. In the said group I also use to share the
information regarding the shutting of KPPPL’s manufacturing plant. I have
also shared meter reading of KPPPL in the said group.”
131.3 When confronted with various MoMs of HKPMA meetings, Mr. Shamji Patel
admitted to having attended several of those meetings with Mr. Mehul Patel and/or Mr.
Paresh Kumar and that he shared the price of Kraft paper therein. He also admitted that
OP–90 partially implemented the price hike and collective shut–down decisions taken
in HKPMA meetings.
131.4 It is also noted from the RG–1 Register of OP–90 that its manufacturing plant was
shut in accordance with the decision taken by HKPMA regarding collective shut–down
during 01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 16.05.2015, 17.05.2015,
13.09.2015, 17.09.2015, 10.10.2015, 11.10.2015, 21.10.2015, 11.09.2016, 12.02.2017
to 15.02.2017 (4 days) and 13.03.2017 to 15.03.2017.

132. OP–91 (Sri Chimmanlal Paper Mills)
Case No. 24 of 2017 279

132.1 It is noted from the DG Report that representative of OP–91, namely, Mr. Rajender
Kumar Agarwal, Proprietor, attended meetings of HKPMA dated 22.01.2015,
shutting down of mills, etc., were held. He was also a member of the WhatsApp group,
07.03.2014, 27.03.2014, 24.04.2015, 18.08.2015, 24.08.2015, 03.12.2015 and
132.2 In his statement recorded before the DG, Mr. Rajender Agarwal, acknowledged as
under:
“Yes, I know HKPMA as an association of Kraft Paper manufactures in which

Kraft Paper mills owners from Telangana state used to attend. Representing
SCPM, I alone have attended 3 – 4 meetings of HKPMA around 2 – 3 years
back. During the HKPMA meetings in which I have attended, Shri Prem Paul
Sharma, President and Shri T. Anjani Kumar, Secretary were also present. I
used to get telephonic calls from Shri T. Anjani Kumar, Secretary of HKPMA
regarding above Association’s meetings.
In the HKPMA meetings in which I have attended, price of Kraft paper, price
of waste paper, members discussed about power related matters, labour
matters etc. I also came to know that in the HKPMA meetings members also
discussed collective shut–down of mills, collectively decided to increase the
price of Kraft Paper etc.
Yes, I was a member of the WhatsApp group namely “HydKraftmills Assn
HKPMA” operated by Sh. T. Anjani Kumar, Secretary of HKPMA …
In the above WhatsApp group, members discussed about price of Kraft paper,
price of waste paper, HKPMA meetings, collective shut–down of mills, power
related matters, GST matters, Govt. policy matters etc.”
132.3 When confronted with the backup of WhatsApp group, namely, “Hyd Kraftmills Assn
HKPMA”, Mr. Agarwal stated that “I admit that mill owners who were members of the
above WhatsApp group exchanged price of Kraft Paper, price of waste paper,
collective shut–down of mills etc.”
132.4 When confronted with various MoMs of HKPMA meetings, Mr. Agarwal admitted
having attended some of the said meetings and sharing price of Kraft paper therein. He
Case No. 24 of 2017 280

also admitted having received the e–mail dated 13.04.2017 from OP–97 forwarding
price increase announcement circular of OP–97. In this regard, Mr. Agarwal also stated
before the DG that “SCPM has also compelled to increase the price of Kraft Paper due
to heavy increase in the waste paper cost and partially increased the price of Kraft
paper (14 BF/100 GSM) @ Rs.4000/– PMT w.e.f. 28.03.2017 (in respect of the sales
made to Vishnu Packaging) i.e. implemented the price hike decision of HKPMA
belatedly (instead of increasing the price of Kraft Paper from 15.03.2017 @ Rs.2000/–
PMT, SCPM has increased the price from 28.03.2017 only).” He also admitted having
belatedly increased the price of OP–91 partially in accord with HKPMA decisions on a
couple of occasions.
132.5 It is also noted from the DG Report that the following shut–down dates of OP–91 as
shown in its RG–1 Register partially match the shut–down dates declared in HKPMA
meetings:
Dates declared by HKPMA Dates of OP–91

25.04.2015 and 26.04.2015 25.04.2015 and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 16.05.2015
01.05.2015 and 02.05.2015
and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 17.09.2015, 17.09.2015, 26.09.2015
18.09.2015, 26.09.2015 and 27.09.2015 and 27.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015, 18.10.2015,
18.10.2015
19.10.2015, 20.10.2015, 21.10.2015 and 31.10.2015
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016, 27.08.2016
14.08.2016 and 15.08.2016
and 28.08.2016
04.09.2016, 10.09.2016, 11.09.2016, 18.09.2016, 24.09.2016 04.09.2016, 24.09.2016
and 25.09.2016 and 25.09.2016
11.02.2017 to 15.02.2017 12.02.2017
11.03.2017 to 15.03.2017 11.03.2017 to 13.03.2017
132.6 In this regard, Mr. Agarwal also stated before the DG that “SCPM has partially
followed the shutdown decisions of HKPMA …”.
132.7 In its suggestions/objections to the DG Report, OP–91 did not make any new
submissions except those made before the DG.
Case No. 24 of 2017 281

133. OP–92 (Rajahmundry Paper Mills Private Limited)
133.1 It is noted from the DG Report that the representative of OP–92, namely, Mr. V.
Murali Krishna, Managing Director, attended meetings of HKPMA dated 24.08.2015
and 03.03.2016 wherein discussions regarding fixing of prices, shutting down of mills,
etc., were held. Further, from OP-92’s e-mail account, e–mails dated 26.08.2015,
03.12.2015 and 07.03.2016 sent by HKPMA were also recovered.
133.2 In his statement recorded before the DG, Mr. V. Murali Krishna, acknowledged as
follows:
“I have attended 2 – 3 meetings of HKPMA. … HKPMA is meant for those

Kraft Paper mills located in Telangana State, however, I have attended those
meetings just to know the prevailing market condition at that time. …
I have attended 1 – 2 meetings of SIKPMA.
In the HKPMA and SIKPMA meetings in which I too attended, members
discussed about price of raw material (local/imported waste paper), Kraft
Paper, collective shut–down of mills (due to power shortage/lack of orders),
power problems, government related matters including new pollution norms,
GST, incentives etc.
I alone was a member of a WhatsApp group in which Kraft Paper mill owners
across Andhra Pradesh and Telangana States were also members. As far as I
can remember the name of the aforesaid WhatsApp group was “Kraft Group”.
I have received couple of MOM/agenda/circular from HKPMA and SIKPMA
thorough WhatsApp only. I have received couple of communications mentioned
above through email also from both the above Associations. …
In the above WhatsApp group, members discussed about price of raw material
(local/imported waste paper), Kraft Paper, collective shut–down of mills (due
to power shortage/lack of orders), power problems, government related
matters including new pollution norms, GST, incentives etc.
Based on our local market conditions RPMPL used to take individual decisions
and partially follow the decisions of SIKPMA and HKPMA.”
Case No. 24 of 2017 282

133.3 When confronted with various MoMs of HKPMA wherein price increase and/or
collective shut–down decisions were taken, Mr. Krishna admitted that he received e–
mails regarding the said MoMs, attended the said meetings, shared price of Kraft paper
and waste paper therein and followed the price increase/shut–down decisions of
HKPMA partially.

134. OP–93 (Sri Luxmi Tulasi Agro Paper Private Limited)
134.1 It is noted from the DG Report that representatives of OP–93, namely, Mr. Tetali
Rajasekhar and Mr. Padala Rama Krishna Reddy, Directors, attended meetings of
HKPMA dated 23.03.2014, 24.08.2015, 30.01.2016 and 03.03.2016, wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held. Mr.
Rajasekhar was also a member of the WhatsApp groups, namely, “Hyd Kraftmills Assn
HKPMA” and “NEWS Paper Mills”, wherein members used to discuss about price hike
of Kraft paper, raw material prices and shut–down schedule of Kraft paper mills.
Further, from OP-93’s e-mail account, e–mails dated 27.03.2014, 26.08.2015 and
07.03.2016, sent by HKPMA were also recovered.
134.2 In his statement recorded before the DG, Mr. Rajasekhar, acknowledged as follows:
“I have attended around 5 – 6 meetings of HKPMA during the last 5 years. On

certain occasions Shri Padala Rama Krishna Reddy, Director has attended
couple of meetings. … I have attended couple of meetings of South India Kraft
Case No. 24 of 2017 283

Paper Mills Association (SIKPMA) during the last five years. Last meeting of
SIKPMA attended by me during 2017–18. …
In the HKPMA meetings in which I have attended, attendees discussed about
several issues connected with Kraft Paper industry like pollution control
norms, changes in tax structure, technical advancement,
Price/availability/quality of waste paper, price/quality of Kraft Paper,
collective shut–down of mills, power problems/tariff, training of manpower etc.
Mill owners from Telangana State used to attend the meetings of HKPMA and
around 90% those mills are situated in and around Hyderabad. On rare
occasions some Kraft Paper mills from Andhra Pradesh State and Karnataka
State also attended very few meetings of HKPMA.
I am a member of the WhatsApp group namely “HKPMA” and I was also a
member of another WhatsApp group namely “NEWS” in which other Kraft
Paper mill owners were also members. There was another WhatsApp group
namely “ICCMA Task Force (South)”, in which some Kraft Paper mill owners
and corrugators from South India are also members in addition to me. In the
group namely “HKPMA”, most of the mill owners are from Telangana,
Andhra Pradesh and Karnataka States. But in the WhatsApp group namely
“NEWS”, mill owners from Pan India were members. …
In the above WhatsApp groups, members discussed various issues which are
connected to Kraft Paper industry such as pollution control norms, changes in
tax structure, technical advancement, Price/availability/quality of waste paper,
price/quality of Kraft Paper, collective shut–down of mills, power
problems/tariff, training of manpower etc. In the above groups members
exchanged price of waste paper and price of Kraft Paper.”
134.3 When confronted with message dated 25.04.2015 at 09:27 sent by him in the
WhatsApp group “Hyd Kraftmills Assn HKPMA” that “Machine stopped at 6:00 am –
Meter Reading 631948” in reply to Mr. Anjani Kumar, Secretary HKPMA’s message
dated 24.04.2015 at 11:05 regarding collective shutdown that “Tomorrow is 25th our
first shut day. Let’s all say yes for 25th& 26th shut” and in reply to which Mr. Anjani
Kumar had sent another message on 25.04.2015 at 09:59 that “You r super
RajeshekarGaru. Ur stopping gives us great support”, Mr. Rajasekhar admitted that “I
admit that I put the above message as shown above partially in support of the collective
shut–down decision of HKPMA and SLTA’s manufacturing plant was also partially
shut during the above period. But the reason for SLTA’s shut was also due to certain
other reasons such as machine maintenance, shortage of raw material, lack of orders
etc.”
Case No. 24 of 2017 284

134.4 Further, when confronted with a few MoMs of HKPMA wherein price increase and/or
collective shut–down decisions were taken, Mr. Rajasekhar admitted that he received
the said e–mails and attended the said meetings (at times with Mr. Padala Rama
Krishna Reddy) wherein price increase and collective shut–downs were discussed. He
also admitted that he shared Kraft paper and waste paper prices and also partially
implemented the price hike decisions regarding Kraft paper.
134.5 It is also noted from the DG Report that from the e–mail account of OP–93, price
increase e–mails of some other paper mills were also recovered.
134.6 It is further noted from the DG Report that a letter dated 31.01.2017 was sent by Mr.
Rajasekhar to OP–93’s corrugators/dealers/manufacturers of various products using
Kraft paper showing increase of ₹2 per kg with immediate effect. HKPMA had also
decided to increase the price of Kraft paper @ ₹2 per kg w.e.f. 01.02.2017. In this
regard, all Mr. Rajasekhar had to say was that “I admit that the above price hike
circular was issued by SLTA to its customers including corrugators/ dealers/
manufacturers showing a price increase of Rs. 2/– per Kg on Kraft paper. SLTA has
not implemented the price hike decision as per the rate and date suggested by HKPMA.
This letter was intended to inform SLTA’s customers regarding intended price hike and
its reasons, but SLTA has not implemented the price hike to all its customers at the
same rates and also not implemented immediately.”
134.7 It is furthermore noted from the DG Report that HKPMA had decided to shut the
Kraft paper manufacturing plants of its members on 15.08.2016, 21.08.2016,
27.08.2016, 28.08.2016, 04.09.2016 and from 11.02.2017 to 15.02.2017. From the RG–
1 Register of OP–93, it is noted that the manufacturing plant of OP–93 was also
partially shut on the said dates and Kraft paper manufactured on said dates was
11.02.2017 – 84.859 MT, 12.02.2017 – 40.519 MT, 13.02.2017 – 48.839 MT,
14.02.2017 – 36.886 MT, 15.02.2017 – 42.950 MT, 15.08.2016 – 126.266 MT,
21.08.2016 – 199.184 MT, 27.08.2016 – 225.903 MT, 28.08.2016 – 208.554 MT and
04.09.2016 – 151.228 MT.

those made by other OPs. The same have already been dealt with in the earlier parts of
the present order.
Case No. 24 of 2017 285

135. OP–94 (Peproll Paper Mills Private Limited)
135.1 It is noted from the DG Report that the representative of OP–94, namely, Mr. G.
Subbaraju, Managing Director, attended meetings of HKPMA dated 20.04.2015,
fixing of prices, shutting down of mills, etc., were held. He was also a member of the
Kraft paper mills. Further, from Mr. Subbaraju’s e-mail account, e–mails dated
24.04.2015, 26.08.2015, 03.12.2015, 08.02.2016 and 07.03.2016 sent by HKPMA were
recovered.
135.2 In his statement recorded before the DG, Mr. G. Subbaraju, acknowledged as under:
“As far as I know, HKPMA as an association of Kraft paper manufacturers

situated in and around Hyderabad. However, in some of the meetings mill
owners from other part of Telangana, Andhra and Karnataka states also
attended. I have attended 4 to 5 meetings of HKPMA since 2015–2016 till
2017–2018. …
In the HKPMA meetings, attendees discussed about waste paper price, price of
Kraft paper, collective shut–down of mills, technical issues, pollution related
matters, GST related matters etc.
I was a member of a WhatsApp group in which Kraft mill owners from
Hyderabad area are also members. As far as I know the name of the WhatsApp
group was “HKPMA”. …
In the WhatsApp group namely “HKPMA” members discussed about HKPMA
meetings, waste paper price, price of Kraft paper, collective shut–down of
mills, technical issues, pollution related matters, GST related matters etc.
Case No. 24 of 2017 286

Yes, I have shared the price of Kraft paper and waste paper to HKPMA only
during the meetings.
Yes, I shared shut–down details of my mill to HKPMA through WhatsApp.”
135.3 When confronted with various MoMs of HKPMA meetings, Mr. Subbaraju admitted
that he attended the said meetings and received the said e–mails. He also admitted that
he shared the prices of his Kraft paper in the said meetings and partially implemented
the shut–down decisions of HKPMA, and on one occasion, price hike decision of
HKPMA. He also admitted that he hosted dinner for HKPMA meeting dated
30.01.2016.
135.4 It is also noted from the DG Report that the manufacturing plant of OP–94 was shut–
down during 11.02.2017 (partially), 12.02.2017 to 15.02.2017, 12.03.2017 and
15.03.2017, which dates almost match with the HKPMA shut–down schedule.

136. OP–95 (Limra Paper Mills Private Limited)
136.1 It is noted from the DG Report that the representative of OP–95, namely, Mr.
Mohammed Hameeduddin Afroze, Managing Director, attended meetings of HKPMA
dated 24.02.2014, 20.04.2015, 24.08.2015, 07.11.2015 and 30.01.2016, wherein
discussions regarding fixing of prices, shutting down of mills, etc., were held. He and
Mr. Mohammed Hafeezuddin Feroz were also members of the WhatsApp group,
Case No. 24 of 2017 287

136.2 In his statement recorded before the DG, Mr. Mohammed Hameeduddin Afroze,
Managing Director, acknowledged as under:
“Representing LPMP I have attended 5 – 8 meetings of HKPMA, but myself or

LPMP is not a member of HKPMA. Last time I have attended the meeting of
HKPMA was about two years back. Mill owners from the state of Telangana
used to attend the meetings of HKPMA. However, in some of the meetings of
HKPMA a few mill owners from Andhra Pradesh also attended. …
Yes, I along with Shri Mohammed Hafeezuddin Feroz are members of the
WhatsApp group namely ‘HKPMA’ operated by Shri T. Anjani Kumar,
Secretary of HKPMA.
In the HKPMA meetings and in the WhatsApp group, members discussed about
price of waste paper, bad debts recovery, price of Kraft Paper, collective
shutting down of mills etc.”
136.3 When confronted with various MoMs of HKPMA meetings, he admitted to having
attended most of the said meetings and receiving the said e–mails. He also admitted to
have shared the price of Kraft paper of OP–95 in the said meetings and partially and
belatedly implemented the decisions taken in HKPMA meetings. Mr. Afroze also
admitted before the DG that “LPMP used to increase the price of Kraft Paper along
with other mills of Telangana State due to increase in the input cost. In order to survive
in the market LPMP along with other mill were forced to follow the decisions of
HKPMA. LPMP used to partially follow the decisions of HKPMA … . Further, LPMP
used to implement the decision of HKPMA belatedly.”
136.4 When confronted with the backup of WhatsApp Group, namely, “Hyd Kraftmills
Assn HKPMA” of which he and Mr. Mohammed Hafeezuddin Feroze were members,
Mr. Mohammed Hameeduddin Afroze stated that “Yes, this is the same WhatsApp
group in which myself and Shri Feroz are also members. In the said WhatsApp group
members shared the price of Kraft Paper, waste paper and shutting down of mills. I
also shared the above information regarding LPMP in the said group”.
136.5 It is also seen from the DG Report that in the said group, in response to Mr. Anjani
Kumar, Secretary of HKPMA’s message regarding shut–down of mills on 24.04.2015,
Mr. Mohammed Hameeduddin Afroze sent a message on 24.04.2015 at 15:35 that
“Yes”. Further, he also sent a message on behalf of OP–86 that “Bahubali is also yes”.
Mr. Afroze also sent a message on 29.04.2015 at 18:49 regarding waste paper price of
Case No. 24 of 2017 288

OP–96. When asked about such messages, Mr. Afroze admitted to having sent the
same. From such messages as extracted hereunder, it is clear that Mr. Mohammed
Hameeduddin Afroze was supporting the collective shut–down decisions of HKPMA:
meetings:

25.04.2015 and 26.04.2015 25.04.2015 and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 01.05.2015, 02.05.2015, 10.05.2015,
16.05.2015 and 17.05.2015 16.05.2015 and 17.05.2015 (partially)
05.09.2015 (partially), 06.09.2015,
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
12.09.2015 (partially), 17.09.2015
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015
(partially), 18.09.2015 and 26.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
03.10.2015, 10.10.2015, 11.10.2015,
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015 and
18.10.2105 and 19.10.2015 (partially)
31.10.2015
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016,
14.08.2016 and 15.08.2016
27.08.2016 and 28.08.2016
06.12.2015, 13.12.2015, 20.12.2015 and 27.12.2015 27.12.2015 (partially)
Case No. 24 of 2017 289

137. OP–96 (V. L. Papers Private Limited)
137.1 It is noted from the DG Report that representatives of OP–96, namely, Mr. Ashok
Kumar Jain and Mr. Shiv Prakash Mantri, Directors, Mr. Rajesh Bung, Mr. Vinod
Bangad and Mr. R.K. Dayama, attended meetings of HKPMA dated 03.10.2013,
24.02.2014, 25.11.2014, 22.01.2015, 03.03.2015, 20.04.2015, 24.08.2015, 12.10.2015,
fixing of prices, shutting down of mills, etc., were held. Mr. Ashok Jain and Mr Shiv
Prakash Mantri were also members of the WhatsApp group, namely, “Hyd Kraftmills
Assn HKPMA”, wherein members used to discuss about price hike of Kraft paper, raw
mail account, e–mails dated 07.10.2013, 04.12.2014, 03.03.2015, 24.04.2015,
26.08.2015, 06.10.2015, 16.10.2015, 03.12.2015, 08.02.2016 and 07.03.2016 sent by
HKPMA were also recovered.
137.2 In his statement recorded before the DG, Mr. Ashok Jain, acknowledged as follows:
“I along with some other Directors of VLPPL have attended 10 to 15 meetings

of Hyderabad Kraft Paper Mills Association (HKPMA) but VLPPL is not a
registered member of HKPMA. VLPPL never paid any membership fee,
caution deposit or any other payment to HKPMA.
In the HKPMA meetings in which I have attended members discussed about
price of waste paper, Kraft Paper, recovery of payments, collective shutting
down of mills, pollution related issues, GST matters etc.
Case No. 24 of 2017 290

I along with Shri Shiv Prakash Mantri are members of the WhatsApp group
namely “HKPMA” in which other Kraft Paper mill owners are/were members.
However, I am not sure about the other Directors.
Yes, VLPPL has shared the price of Kraft Paper, waste paper and shutting
down of VLPPL’s manufacturing plant details to HKPMA.
Yes, VLPPL has received communication/MOM/circular from HKPMA.
…
I admit that in the said WhatsApp group (HydKraftmills Assn HKPMA),
members used to discuss the price of Kraft Paper, waste paper and collective
shutting down of mills. I also admit that in the said WhatsApp group myself
and Shri Shiv Prakash Mantri have also shared the shut–down details of
VLPPL’s manufacturing plant and price of Kraft Paper/waste paper.”
137.3 When confronted with various MoMs of HKPMA meetings recovered from the e–
mail ID of OP–96, Mr. Ashok Jain admitted that representatives of OP–96 (including
himself at times) attended the said meetings and that OP–96 received the said e–mails
from HKPMA. He also admitted to have shared the price of Kraft paper and shut–down
of OP–96 in the said meetings. He also stated in response to several questions asked by
the DG that “I admit that VLPPL used to follow the decisions of HKPMA regarding
price hike of Kraft Paper”, “I also admit that VLPPL used to follow the decisions of
HKPMA regarding shutting down of mills” and “VLPPL also used to follow the
decisions of HKPMA to control the price of waste paper”.
meetings:

01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015,
02.05.2015 and 16.05.2015
16.05.2015 and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015,
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
13.09.2015, 17.09.2015, 18.09.2015
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015
and 26.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
02.10.2015, 03.10.2015 and
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015 and
11.10.2015
31.10.2015
17.10.2015, 21.10.2015, 22.10.2015, 23.10.2015 and
22.10.2015 and 23.10.2015
31.10.2015
Case No. 24 of 2017 291

06.12.2015, 13.12.2015, 20.12.2015 and 27.12.2015 06.12.2015 and 13.12.2015
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016,
15.08.2016 and 21.08.2016 and
27.08.2016 and 28.08.2016
04.09.2016, 10.09.2016, 11.09.2016, 18.09.2016,
04.09.2016
24.09.2016 and 25.09.2016
138. OP–97 (Vamshadhara Paper Mills Limited)
138.1 It is noted from the DG Report that representatives of OP–97, namely, Mr. V.
Ramesh, Marketing Manager, Mr. Selvaraj, Assistant Marketing Manager, and Mr.
Rajendran, Director, attended meetings of HKPMA dated 03.10.2013, 24.02.2014,
25.11.2014, 22.01.2015, 20.04.2015, 03.03.2015, 24.08.2015, 07.11.2015, 03.03.2016
etc., were held. Further, Mr. R. Kaushik, Joint managing Director and Mr. R. Vajay
Sekhar, Managing Director, were also members of the WhatsApp group, namely, “Hyd
paper, raw material prices and shut–down schedule of Kraft paper mills. Also, from
OP-97’s e-mail account, e–mails dated 07.10.2013, 04.12.2014, 03.03.2015,
24.04.2015, 26.08.2015, 06.10.2015, 03.12.2015 and 07.03.2016 sent by HKPMA were
recovered.
138.2 In his statement recorded before the DG, Mr. V. Ramesh, acknowledged as under:
Case No. 24 of 2017 292

“… I have attended a maximum of 5 or 6 meetings of HKPMA. After attending
the HKPMA meetings I used to report to Shri N. S. Murthy, Senior Marketing
Manager who retired in December 2018. In some of the meetings (1 or 2) Shri
G. Venkatesh, GM also attended because I was unable to attend the same. After
Shri G. Venkatesh joined VPML, I did not attend any meetings of HKPMA. As
far as I can recollect, I have attended last meeting of HKPMA during 2017. …
In the HKPMA meetings attendees discussed about information regarding raw
material, price of Kraft Paper, price of waste paper, collective shutting down
of mills, bad debt recovery etc.
VPML has shared price of Kraft Paper, waste paper and shutting down
information to HKPMA during the meetings attended by me or any other
person on behalf of VMPL.”
138.3 When confronted with various MoMs of HKPMA meetings, Mr. Ramesh admitted
that representatives of OP–97 (including himself at times) attended the said meetings.
He also admitted to have shared the price of Kraft paper and shut–down of OP–97 in
the said meetings. He also stated in response to several questions that “I admit that
VPML used to follow the decisions of HKPMA regarding price hike of Kraft Paper
partially”, “I also admit that VPML used to follow the decisions of HKPMA regarding
shutting down of mills” and “VLPPL also used to follow the decisions of HKPMA to
control the price of waste paper”.
138.4 When confronted with backup of WhatsApp group, namely, “Hyd Kraftmills Assn
HKPMA”, Mr. Ramesh acknowledged that Mr. R. Kaushik and Mr. R. Vijay Sekhar
were the members of the said WhatsApp group in which other Kraft paper mill owners
from Telangana State were also members. He stated that Mr. R. Kaushik used to
communicate to Mr. Murthy, former Marketing Manager of OP–97, all decisions of
HKPMA received by him in the said WhatsApp group. Some extracts of the said
WhatsApp group are as follows:
Case No. 24 of 2017 293

It can be observed from the above extracts that Mr. Vijay Shekhar had sent the meter
reading of OP–97 in the aforesaid WhatsApp group on 22.04.2015 at 20:23. Further,
Mr. R. Kaushik had shared on 27.04.2015 at 20:11 that the selling price of Kraft paper
of OP–97 has been reduced by ₹200.
138.5 The above messages clearly show that even the Managing Director and Joint
Managing Director of OP–97 were involved in exchange of information of price of
Kraft paper and shut–down of mills with competitors.
meetings:

25.04.2015 and 26.04.2015 25.04.2015 (partially) and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 01.05.2015, 02.05.2015, 09.05.2015 and
10.05.2015, 16.05.2015 and 17.05.2015 10.05.2015 (both partially)
Case No. 24 of 2017 294

05.09.2015, 06.09.2015, 12.09.2015 (partially),
05.09.2015, 06.09.2015, 12.09.2015,
13.09.2015, 17.09.2015 (partially), 18.09.2015
13.09.2015, 17.09.2015, 18.09.2015,
(partially), 26.09.2015 (partially) and 27.09.2015
26.09.2015 and 27.09.2015
(partially)
02.10.2015, 03.10.2015, 10.10.2015,
11.10.2015, 18.10.2015, 19.10.2015, 02.10.2015 and 03.10.2015 (partially)
20.10.2015, 21.10.2015 and 31.10.2015
06.12.2015, 13.12.2015, 20.12.2015 06.12.2015, 20.12.2015 and 27.12.2015 (all
and 27.12.2015 partial)
07.08.2016, 14.08.2016, 15.08.2016,
22.08.2016 and 24.08.2016 (both partial)
21.08.2016, 27.08.2016 and 28.08.2016
04.09.2016, 10.09.2016, 11.09.2016,
25.09.2016
18.09.2016, 24.09.2016 and 25.09.2016
those made by the other OPs, specifically OP–107. The same have been dealt with in
the later part of the present order.
139. OP–98 (Hyderabad Paper Mills Private Limited)
139.1 It is noted from the DG Report that representatives of OP–98, namely, Mr.
Mohammed Aliuddin and Mr. Mohammed Nooruddin (Parvez), Directors, attended
meetings of HKPMA dated 02.03.2015, 20.04.2015, 24.08.2015, 12.10.2015,
fixing of prices, shutting down of mills, etc., were held. They were also members of the
Kraft paper mills.
Case No. 24 of 2017 295

139.2 In his statement recorded before the DG, Mr. Mohammed Aliuddin, acknowledged as
under:
“… HPMPL used to attend the meetings of Hyderabad Kraft Paper Mills

Association (HKPMA). Myself or Sh. Mohammed Nooruddin, Director or both
of us together attended 8 to 10 (appx.) meetings of HKPMA. I along with Sh.
Mohammed Nooruddin attended the meeting of HKPMA last time during the
first half of 2018. HPMPL used to get telephonic calls/WhatsApp message from
Sh. T. Anjani Kumar, Secretary of HKPMA regarding the association meetings.
In the HKPMA meetings in which myself or other director of HPMPL have
attended, members discussed about present scenario of Kraft paper industry in
Telangana State, price of Kraft paper, price of waste paper, availability of
waste paper both local/imported, bad debtors, collective shut–down of mills,
technical matters such as pollution water and air, GST matters, Govt. policies
etc.
Myself and Sh. Mohammed Nooruddin are members of the WhatsApp group
namely “HKPMA”. In this WhatsApp group members discussed about present
scenario of Kraft paper industry in Telangana State, price of Kraft paper, price
of waste paper, availability of waste paper both local/imported, collective
shut–down of mills, shared the price of waste paper/Kraft paper, bad debtors,
technical matters such as pollution water and air, GST matters, Govt. policies
etc.
HPMPL used to share the price of Kraft Paper, waste paper and shutting down
of manufacturing plant details to HKPMA during the meetings in which myself
or the other director of HPMPL have attended.”
139.3 When confronted with various MoMs of HKPMA meetings, Mr. Aliuddin admitted
that representatives of OP–98 (including himself at times) attended the said meetings.
He also admitted to have shared the price of Kraft paper and shut–down of OP–98 mill
in the said meetings. He also stated in response to two questions that “HPMPL used to
follow the HKPMA decisions partially”.
HKPMA” Mr. Aliuddin admitted that “myself and Sh. Mohammed Nooruddin are
members of the above WhatsApp group. I also admit that in the said group, members
used to discuss the price of Kraft Paper, waste paper and collective shutting down of
mills. In the said WhatsApp group I have also shared the meter reading of my mill to
show our company is also supporting HKPMA decision.” A relevant extract of the
WhatsApp group in this regard is as follows:
Case No. 24 of 2017 296

shown in its RG–1 Register partially match with the shut–down dates declared in
HKPMA meetings:

01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 16.05.2015
01.05.2015
and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 17.09.2015,
17.09.2015
18.09.2015, 26.09.2015 and 27.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015, 18.10.2015,
02.10.2015
19.10.2015, 20.10.2015, 21.10.2015 and 31.10.2015
17.10.2015, 21.10.2015, 22.10.2015, 23.10.2015 and
23.10.2015
31.10.2015
01.11.2015, 07.11.2015, 11.11.2015, 12.11.2015, 15.11.2015, 07.11.2015, 11.11.2015,
21.11.2015, 22.11.2015, 28.11.2015 and 29.11.2015 12.11.2015 and 29.11.2015
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016, 27.08.2016
15.08.2016
and 28.08.2016
140. OP–99 (Wings Papers and Board Mills Private Limited)
140.1 It is noted from the DG Report that representatives of OP–99, namely, Mr. Hemant
Patel and Mr. Bhavani Shankarlal Patel, Directors and Mr. Mehak Patel, son of Mr.
Case No. 24 of 2017 297

Hemant Patel, attended meetings of HKPMA dated 03.10.2013, 24.02.2014,
23.03.2014, 25.11.2014, 22.01.2015, 24.08.2015, 07.11.2015, 22.07.2016 and
were held. Mr. Hemant Patel and Mr. Shankarlal Patel were also members of the
Kraft paper mills. Further, e–mails dated 07.10.2013, 28.02.2014, 27.03.2014,
19.04.2014, 04.12.2014, 26.08.2015, 06.10.2015, 03.12.2015 and 22.07.2016 were also
sent by HKPMA to OP-99.
140.2 In his statement recorded before the DG, Mr. Hemant Patel, stated as under:
“… myself and Shri Bhavani Shankarlal Patel, Director have attended a

maximum of 10 meetings of Hyderabad Kraft Paper Mills Association
(HKPMA) during 2014 to 2018. …
In the HKPMA meetings, attendees discussed the price of waste paper, price of
Kraft Paper.
Myself and Shri Bhavani Shankarlal Patel, Director are members of a
WhatsApp group namely “HKPMA”. In the said WhatsApp group members use
to discuss about GST related issues and Pollution norms.”
140.3 When confronted with MoMs of various HKPMA meetings whose e–mails were sent
to OP–99 and some other e–mails, Mr. Patel admitted that representatives of OP–99
(including himself at times) attended the said meetings. In the said meetings, though he
initially denied it, he admitted to have shared the price of Kraft paper and shut–down
dates of mills of OP–99. Similarly, though he initially denied it, when confronted with
the backup of WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA”, Mr. Patel
admitted that “In this WhatsApp group members discussed the price of Kraft Paper,
waste paper and collective shutting down of mills”.
140.4 It is noted from the DG Report that OP–99 issued a price hike circular dated
10.03.2017 to Darshan Corporation, Secunderabad showing a price increase of Kraft
Paper of ₹2,000 PMT w.e.f. 11.03.2017. HKPMA had also decided to increase the price
of Kraft Paper @ ₹2,000 PMT w.e.f. 10.03.2017.
140.5 Similarly, from the sales register of OP–99, it is seen that OP–99 increased the price
of Kraft paper (16 BF/100 GSM) @ ₹1,000 PMT w.e.f. 21.02.2017 for the sale made to
Case No. 24 of 2017 298

Darshan Corporation. HKPMA had also decided to increase the price of Kraft paper @
₹1,000 PMT w.e.f. 05.02.2017.
140.6 From the sales register of OP–99, it is also seen that OP–99 increased the price of
Kraft paper (16 BF/100 GSM) @ ₹2,000 PMT w.e.f. 23.03.2017 for the sale made to
Darshan Corporation. HKPMA had also decided to increase the price of Kraft paper @
₹2,000 PMT w.e.f. 15.03.2017.
140.7 It is also noted from the DG Report that the following shutdown dates of OP–99 as
meetings:

05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
06.09.2015, 13.09.2015, 17.09.2015
17.09.2015, 18.09.2015, 26.09.2015 and
and 27.09.2015
27.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
02.10.2015, 11.10.2015 and
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015
18.10.2015
and 31.10.2015
06.12.2015, 13.12.2015, 20.12.2015 and 06.12.2015, 13.12.2015, 20.12.2015
27.12.2015 and 27.12.2015
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016, 07.08.2016, 14.08.2016, 15.08.2016,
27.08.2016 and 28. .08.2016 21.08.2016 and 28.08.2016
04.09.2016, 10.09.2016, 11.09.2016, 18.09.2016, 04.09.2016, 11.09.2016, 18.09.2016
24.09.2016 and 25.09.2016 and 25.09.2016
Case No. 24 of 2017 299

141. OP–100 (Suvarna Durga Paper Mills Private Limited)
141.1 It is noted from the DG Report that representatives of OP–100, namely, Mr. J.
Subhaskara Reddy, Managing Director, Mr. Chandra Sekhar Reddy, Former Director,
and Mr. J. Srinivasa Reddy, attended meetings of HKPMA dated 03.10.2013,
24.02.2014, 23.03.2014, 24.11.2014, 22.01.2015, 20.04.2015, 24.08.2015, 12.10.2015,
shutting down of mills, etc., were held. Mr. Chandra Sekhar Reddy was also a member
of the WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA”, wherein members
used to discuss about price hike of Kraft paper, raw material prices and shut–down
schedule of Kraft paper mills. Further, e–mails dated 07.10.2013, 28.02.2014,
27.03.2014, 04.12.2014, 24.04.2015, 26.08.2015, 06.10.2015, 16.10.2015, 03.12.2015,
08.02.2016 and 07.03.2016 were also sent by HKPMA to OP-100.
141.2 In his statement recorded before the DG, Mr. Subhaskara Reddy, acknowledged as
under:
“I have attended 10 – 12 meetings of Hyderabad Kraft Paper Mills Association

(HKPMA) since 2014 till 2018. In some of the meetings of HKPMA in which I
could not attend, Shri Chandra Sekhar Reddy, Director (former) also attended.
Nobody has attended the meetings of HKPMA except me and Shri Chandra
Sekhar Reddy since 2014. …
In the HKPMA meetings in which I have attended, members discussed about
Bad Debtors, Defaulters, availability of waste paper in the receivable cycles,
latest technology in the Kraft Paper industry, labour issues, pollution related
matters and its implementation, price of waste paper, price of Kraft Paper and
power related issues. …
Most of the attendees of HKPMA were Kraft Paper mill owners from the state
of Telangana, but on most of the occasions Kraft Paper mill owners in and
around Hyderabad only attended. In certain meetings of HKPMA, a few Kraft
Paper mills owners from Andhra Pradesh state also attended.
Yes, SDPM has received MOM from HKPMA. However, SDPM has not
received any communication from SIKPMA
Yes, I or Shri Chandra Sekhar Reddy, Director has shared the price of Kraft
Paper and price of waste paper of SDPM to HKPMA in the meetings in which
any of the Directors attended … .”
Case No. 24 of 2017 300

141.3 When confronted with various MoMs of HKPMA meetings, Mr. Reddy admitted that
“So far as I can remember in every meeting attended by me or other Directors on
behalf of SDPM has shared the price of Kraft Paper and waste paper to HKPMA.
Regarding shutting down or breakdown details of SDPM’s manufacturing plant, I or
Shri Chandra Sekhar Reddy sometimes inform it to HKPMA or Shri T. Anjani Kumar,
Secretary of HKPMA.” He also admitted that OP–100 hosted dinner for HKPMA
meeting dated 12.10.2015.
141.4 When confronted with HKPMA MoM dated 03.03.2016 wherein it was, inter alia,
decided to increase the price of Kraft Paper by ₹1,000 across all BFs, Mr. Reddy stated
that “I admit that SDPM has received the above email and … In the said meeting it was
decided to increase the price of Kraft Paper by Rs.1000/– PMT across all BFs. Due to
increase in input cost and increase in the credit period with some customers SDPM was
forced to increase the cost of Kraft Paper.”
HKPMA” in which Mr. Chandra Sekhar Reddy was a member and had supported the
decision of collective shut–down of HKPMA during April 2015 by putting a thumbs
up, Mr. Reddy stated that “… Shri Chandra Sekhar Reddy, Director is/was a member of
aforesaid WhatsApp group. He has also supported the shut–down decision of HKPMA
by putting thumbs up. As it can be seen from the RG–1 our company has stop
production partially on 25.04.2015.” In the said group, Mr. Anjani Kumar, Secretary of
HKPMA, had sent a message on 27.04.2015 at 08:47 that “Shut program 100%
successful. Thank all members for ur excellent cooperation. Special thanks to Mr.
Chandarshekhar Reddy, Mr. Subhaskar Reddy, Mr Parvez, Mr. Dilip Patel, Mr. Afroz,
Mr. Mahesh Gandhi for volunteering and spending ur valuable time for the assn cause”
and another message on 27.04.2015 at 08:49 that “I would appreciate the extraordinary
effort put by Chandrashekhar Reddy & Subhaskar for going all the way to Nizamabad
yesterday on short notice. A big round of applause for them”. In this regard, Mr.
Subhaskara Reddy stated that Mr. Chandra Sekhar Reddy “has also supported the shut–
down decision of HKPMA and it can be seen from the RG–1 our company has stop
production partially on 25.04.2015. I also admit that he has visited Nizamabad to
ensure the collective shut decision of HKPMA.” Relevant extracts of the aforesaid
WhatsApp conversations are as follows:
Case No. 24 of 2017 301

meetings:

25.04.2015 and 26.04.2015 25.04.2015 (partially)
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015 16.05.2015 01.05.2015, 09.05.2015 and
and 17.05.2015 10.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 05.09.2015, 13.09.2015 and
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015 27.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015, 03.10.2015, 10.10.2015
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015 and (partially), 11.10.2015
31.10.2015 (partially) and 21.10.2015
17.10.2015, 21.10.2015, 22.10.2015, 23.10.2015 and
21.10.2015 and 22.10.2015
31.10.2015
06.12.2015, 13.12.2015, 20.12.2015 and 27.12.2015 06.12.2015 and 13.12.2015
Manufacturing plant was
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016,
completely shut during
27.08.2016 and 28.08.2016
August 2016
issued by HKPMA, fully or partially, in this regard. Such conduct of OP-100 amounts
Case No. 24 of 2017 302

142. OP–101 (Vijay Anand Kraft Papers Private Limited)
142.1 As noted by the DG, Mr. Deepak Agarwal, former Chief Operating Officer of OP–
101, was the Vice–President of HKPMA. He was also the Chair of HKPMA meeting
dated 30.01.2016. As he is settled in Italy, his statement could not be recorded by the
DG. However, in this regard, Mr. Abhishek Agarwal, present Chief Operating Officer
of OP–101 stated that the name of Mr. Deepak Agarwal was wrongly mentioned as
Vice–President of HKPMA. He, in the said HKPMA meeting, had only taken a lead in
the absence of Mr. Paul Sharma, who usually headed the meetings.
142.2 It is noted from the DG Report that representatives of OP–101, namely, Mr. Deepak
Chand Agarwal, Mr. Veereswara Rao, Former Deputy General Manager and Mr.
Abhishek Agarwal, attended meetings of HKPMA dated 03.10.2013, 24.02.2014,
23.03.2014, 22.01.2015, 02.03.2015, 24.08.2015, 01.12.2015, 30.01.2016, 03.03.2016
and 07.07.2017 wherein discussions regarding fixing of prices, shutting down of mills,
etc., were held. They were also members of the WhatsApp group, namely, “Hyd
paper, raw material prices and shut–down schedule of Kraft paper mills. Further, from
OP-101’s e-mail account, e–mails dated 07.10.2013, 28.02.2014, 07.03.2014,
27.03.2014, 03.03.2015, 24.04.2015, 26.08.2015, 06.10.2015, 03.12.2015 and
07.03.2016 sent by HKPMA were also recovered.
142.3 In his statement recorded before the DG, Mr. Abhishek Agarwal, also acknowledged
as under:
“Myself, Shri Deepak Chand Agarwal, former Chief Operating Officer and
Shri Veereshwar Rao, former Marketing Manager used to attend the meetings
of HKPMA. I have attended 5 – 10 meetings of HKPMA and the last one was
attended during October/November 2019. Shri Deepak Chand Agarwal and
Shri Veereshwar Rao left VAKP on 15.09.2019 and August 2018 respectively.
In the HKPMA meetings in which I have attended, attendees used to discuss
about price of Kraft Paper, price of local waste paper, shutting down of mills,
pollution related matters, GST, Government policy, technical upgradation,
Case No. 24 of 2017 303

implementation of software, Bad Debts, prevailing market scenario, export
potentials, fuel prices, labour problems, price and scope of imported waste
paper etc.
After the meeting, Shri Deepak Chand Agarwal and Shri A. Veereshwar Rao
used to inform me about the decisions/discussions/developments of HKPMA
meetings attended by them.
Most of the attendees of HKPMA meetings were the mill
owners/representatives from the state of Telangana.
I am still a member of the WhatsApp group namely “HKPMA” operated by
office bearers of the above Association only. Shri Deepak Chand Agarwal and
Shri A. Veereshwar Rao were also members of the above WhatsApp group.
In the above WhatsApp group members used to discuss about price of Kraft
Paper, price of local waste paper, shutting down of mills, pollution related
matters, GST, Government policy, technical upgradation, implementation of
software, Bad Debts, prevailing market scenario, export potentials, fuel prices,
labour problems, price and scope of imported waste paper, organizing the
meetings of HKPMA etc.”
142.4 When confronted with MoMs of various HKPMA meetings, Mr. Abhishek Agarwal
admitted to the receipt of the said e–mails and stated that representatives of OP–101
attended the said meetings. In the said meetings, he also admitted to have shared the
price of Kraft paper and shut–down of OP–101. It is also noted from the DG Report
that OP–101 hosted the cocktail dinner for HKPMA meeting dated 20.04.2015. Mr.
Agarwal was also confronted with certain other incriminating e–mails recovered from
OP–101’s e–mail ID, which he admitted to receiving.
142.5 When confronted with the following messages sent by Mr. Deepak Agarwal in the
WhatsApp group “Hyd Kraftmills Assn HKPMA”, Mr. Abhishek Agarwal admitted
that Mr. Deepak Agarwal had sent the said messages in the group:
Case No. 24 of 2017 304

142.6 Similarly, when confronted with the following message put by Mr. A. Veereswara
Rao in the WhatsApp group “Hyd Kraftmills Assn HKPMA”, Mr. Abhishek Agarwal
admitted that Mr. Rao had sent the said messages in the group:
142.7 It is also noted from the DG Report that OP–101 had issued a price revision/increase
circular on 11.03.2017 at 12:49 through e–mail, which reads as “Dear
dealer/corrugator, In view of scarcity of both indigenous and import WASTE PAPER
we are forced to increase the finished product of Kraft Paper by Rs.5000/– PMT with
immediate effect. This increase is a total basic price of prior to Dt: 31/01/2017. This
increase is due to the above reason so it is inevitable. The inconvenience caused is
regretted. With regards, A. Veereswar Rao, with regards, Vijay Anand Kraft Papers
Pvt. Ltd. regd office: 15–2–345, MukthiyarGunj, Hyderabad – 12 …”. The DG has
noted that during the aforesaid period, other paper mills of HKPMA also increased their
prices.
shown in its RG–1 Register partially match with the shut–down dates declared in
HKPMA meetings:

25.04.2015 and 26.04.2015 25.04.2015 and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015,
01.05.2015 and 09.05.2015
16.05.2015 and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 05.09.2015 (partially), 18.09.2015
Case No. 24 of 2017 305

17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015 (partially) and 26.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
10.10.2015, 11.10.2015 and
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015 and
31.10.2015
31.10.2015
06.12.2015, 13.12.2015, 20.12.2015 and 27.12.2015 27.12.2015 (partially)
142.9 Regarding the aforesaid shut–downs of OP–101’s manufacturing plant, Mr. Abhishek
Agarwal explained that the company usually takes 150 hours shut in a month, and for
each of the shut–downs mentioned above, the shut hours are well below the average
shut–down time taken per month.
142.10 It is also noted from the DG Report that the mill owners in Southern region shut their
manufacturing plants from 11.02.2017 to 15.02.2017. It is observed from the RG–1
Register of OP–101 that its manufacturing plant was also shut on 15.02.2017. When
Mr. Abhishek Agarwal was confronted with the said fact, he admitted that the
manufacturing plant of the company was shut on aforesaid day. However, he stated that
matching of the said shut–down date of OP–101’s is purely coincidental.
142.11 It is also noted from the DG Report that Mr. Deepak Agarwal had also attended the
meeting of GPMA dated 07.04.2017 wherein discussions regarding fixing of prices,
shutting down of mills, etc., were held. In fact, in his statement recorded before the DG,
Mr. Omprakash Rathi of OP–3 stated that Mr. Deepak Agarwal and a few others from
HKPMA sometimes used to attend the meetings of GPMA, wherein pricing and shut–
down of mills was discussed.

Case No. 24 of 2017 306

143. OP–102 (SBS Paper Boards Private Limited)
143.1 It is noted from the DG Report that the representative of OP–102, namely, Mr. S.
Krishna Prasad, Director attended the joint meeting of HKPMA and APRPMA dated
were held. He was also a member of the WhatsApp group, namely, “Hyd Kraftmills
Assn HKPMA”, wherein members used to discuss about price hike of Kraft paper, raw
mail account, e–mails dated 03.07.2013, 05.07.2013, 07.09.2013, 16.09.2013,
07.10.2013, 04.12.2013, 30.01.2014, 28.02.2014, 07.03.2014, 13.03.2014, 27.03.2014,
19.04.2014, 13.11.2014, 28.01.2015, 03.03.2015, 26.08.2015, 08.02.2016 and
143.2 In his statement recorded before the DG, Mr. Krishna Prasad, stated as under:
“I have attended only one meeting of HKPMA during 2015. In addition to the
above, nobody has attended any meetings of HKPMA from SBS.
In the HKPMA meeting in which I have attended attendees discussed about
prevailing market conditions of Kraft Paper industry, new developments in the
industry.
No, myself or anybody from SBS never shared the price of waste paper or price
of Kraft Paper in the HKPMA meeting in which I have attended during 2015
and also in the meetings in which nobody has attended from SBS.”
143.3 However, when he was confronted with the MoM dated 24.08.2015, Mr. Prasad
acknowledged that he attended the said meeting and in the same, OP–102 shared the
price of waste paper, Kraft paper and shut–down details of OP–102. In the said
meeting, collective shut–down on 05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015, as well as on 02.10.2015,
03.10.2015, 10.10.2015, 11.10.2015, 18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015
and 31.10.2015 was decided. It is noted from the DG Report that the mill of OP–102
was also shut–down during 05.09.2015, 06.09.2015, 12.09.2015 (partially), 13.09.2015,
17.09.2015 and 18.09.2015 (both partially shut), as well as during 03.10.2015,
Case No. 24 of 2017 307

10.10.2015, 11.10.2015, 21.10.2015 and 31.10.2015 (partially), which dates partially
coincide with the collective shut–down dates declared by HKPMA.
143.4 Further, when confronted with the following e–mail sent by OP–102 to APRPMA,
Mr. Prasad stated that “I admit that the aforesaid email was sent by SBS mentioning the
requirement of collective shut–down of mills in AP for 4 days from 6th to 10th March
2014. …”
“Dear Members, you are all aware the three important decisions confirmed by
our APREPMA and are forwarded to all, by your coordinator Mr. Shrinivas
reddy. Stoppage of mills is also a valuable message, which must go to the
knowledge of waste paper suppliers and accordingly we are to take steps,
keeping them silence for some time at least. After having the opinions about the
power holidays declared by the department from our members and basing on
the interest of the most of the members, the same decisions made in our last
meeting and are allowed to put into implementation and all are requested to go
ahead and stop mills for 4 days that is from 6th to 10th morning of March.
Kindly note no deviation on this aspect and look forward for your 100%
cooperation and let all of us hope positive result, if not immediately we try and
try to get it. Regards, S. Saibaba Managing Director M/s SBS PAPER
BOARDS PRIVATE LIMITED.”
143.5 Also, when confronted with the e–mail dated 03.03.2017 sent by OP–97 to OP–102
along with various other paper mills in Andhra Pradesh and Telangana regarding stop
order for further booking, Mr. Prasad stated that “I admit that SBS has received the
above email sent by Vamshadhara Paper Mills regarding stop order for further
booking at the old rates. In this regard I want to state that SBS has not increased the
price @ Rs.2000/– PMT, but increased upto a maximum of Rs.750/– PMT only. …”
143.6 It is further noted from the DG Report that paper mills of HKPMA had increased the
price of Kraft Paper @ ₹2,000 each PMT w.e.f. 01.02.2017 and 15.03.2017. Even OP–
102 had increased the price of Kraft Paper (14 BF/110 GSM) @ ₹2,000 PMT w.e.f.
21.03.2017 and further @ ₹5,000 PMT w.e.f. 26.03.2017 for sales made to Coromandal
Cartons & Containers, Vizag.
143.7 Similarly, paper mills of HKPMA had increased the price of Kraft Paper @ ₹2,000
each PMT w.e.f. 15.03.2017. Even OP–102 had increased the price of Kraft Paper (14
BF/100 GSM) @ ₹2,000 PMT w.e.f. 20.03.2017 for sales made to Costal Andhra
Papers Production, Vijayawada.
Case No. 24 of 2017 308

shown in its RG–1 Register also partially match shut–down dates declared in HKPMA
meetings:

25.04.2015 and 26.04.2015 25.04.2015 and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 01.05.2015, 02.05.2015, 16.05.2015
16.05.2015 and 17.05.2015 and 17.05.2015
01.11.2015, 07.11.2015, 11.11.2015, 12.11.2015,
01.11.2015, 07.11.2015 (partially) and
15.11.2015, 21.11.2015, 22.11.2015, 28.11.2015
15.11.2015 (partially)
and 29.11.2015
04.09.2016, 10.09.2016, 11.09.2016 18.09.2016,
04.09.2016 (partially) and 11.09.2016
24.09.2016 and 25.09.2016
11.02.2017 to 15.02.2017 11.02.2017 to 15.02.2017
11.03.2017 to 15.03.2017 11.03.2017 to 15.03.2017
144. OP–103 (Sri Sai Strength Papers)
144.1 It is noted from the DG Report that the representative of OP–103, namely, Mr. Umesh
Kumar Marda, Former Partner, Mr. Vedant Marda, Manager, Mr. Girish Rathi, Mr.
Varun Singhal, Mr. Deepak Santhwal and Mr. Narender, Partners, attended meetings of
HKPMA dated 25.11.2014, 20.04.2015, 01.12.2015, 03.03.2016 and 07.07.2017,
Mr. Umesh Marda, Mr. Vedant Marda and Mr. Varun Singhal were also members of
the WhatsApp group, namely, “Hyd Kraftmills Assn HKPMA”, wherein members used
Case No. 24 of 2017 309

to discuss about price hike of Kraft paper, raw material prices and shut–down schedule
of Kraft paper mills. Further, from OP-103’s e-mail account, e–mails dated 28.02.2014,
04.12.2014, 24.04.2015, 26.08.2015 06.10.2015, 16.10.2015, 03.12.2015 and
07.03.2016 sent by HKPMA were also recovered.
144.2 In his statement recorded before the DG, Mr. Umesh Kumar Marda, acknowledged as
under:
“SSSP was not a member of any association of Kraft Paper manufacturers

however, SSSP used to attend some of the meetings of Hyderabad Kraft Paper
Mills Association (HKPMA). … I have attended 3 – 4 meetings of HKPMA and
Shri Girish Rathi, Partner have attended 5 – 6 meetings of HKPMA.
In the HKPMA meetings in which I have attended members/attendees used to
discuss price of Kraft Paper, price of waste paper, pollution related matters,
GST/Central Excise related matters, collective shutting down of mills in order
to control the price of waste paper.
Myself and Shri Girish Rathi, Partner were members of the WhatsApp group
namely “HKPMA” created by Shri T. Anjani Kumar, Secretary of HKPMA.
In the above WhatsApp group members used to exchange messages connected
with price of Kraft Paper, price of waste paper, pollution related matters,
collective shutting down of mills in order to control the price of waste paper.
Yes, SSSP has shared the price of Kraft Paper, waste paper and shut details of
my manufacturing plant to HKPMA couple of times while attending the
meetings. Even when nobody from SSSP has attended the meeting association
used to collect the aforesaid information from SSSP over telephone.
I used to get the information about the meetings of HKPMA through
WhatsApp, through Shri Girish Rathi, Partner or through telephonic
conversation by Shri T. Anjani Kumar, Secretary of HKPMA.
Most of the attendees of HKPMA meetings were Kraft Paper Mill
owners/representatives from Telangana State.”
144.3 When confronted with MoMs of various HKPMA meetings, Mr. Marda admitted that
OP–103 shared the price of waste paper and Kraft paper in the HKPMA meetings. He
also admitted that OP–103 partially implemented the collective shut–down and price
hike decisions of HKPMA on certain occasions.
144.4 Further, when confronted with the backup of WhatsApp group, namely, “Hyd
Kraftmills Assn HKPMA”, Mr. Marda admitted that “Yes, this is the same WhatsApp
Case No. 24 of 2017 310

group in which myself and Shri Vedant Marda staff of SSSP were also members. In this
group myself and Shri Vedant Marda occasionally shared the shut–down information
of my mill including electricity meter reading and other members shared the price of
waste paper and Kraft Paper.”
144.5 In the said group, Mr. Marda, in response to Mr. Anjani Kumar, Secretary of
HKPMA’s message dated 26.04.2015 at 11:24 regarding confirmation for shut–down
of mills, sent a message on 26.04.2015 at 12:02 that “we are closed today and our
readings at 8 am today are KWH–4097.98 KVAH–4103.37 KVA–353… Sri Sai
Strength Papers …”.
144.6 Further, in his statement recorded before the DG, Mr. Deepak Santhwal, Partner, also
“… SSSP used to attend meetings of Hyderabad Kraft Paper Mills Association

(HKPMA). I used to attend most of the meetings of HKPMA. I have attended
around 6 meetings of HKPMA.
In the HKPMA meetings which were attended by me, members/attendees
discussed about purchase price of waste paper, selling price of Kraft Paper,
shutting down of mills, pollution related matters, fuel/electricity related
matters, overall market of Kraft Paper industry in India and labour related
matters.
SSSP used to receive information regarding the HKPMA meeting through
WhatsApp message and telephone calls from Shri T. Anjani Kumar, Secretary
of HKPMA. Couple of occasions SSSP received copies of MOM of HKPMA
meetings
Myself and Shri Varun Singhal are members of the WhatsApp group namely
“HKPMA” operated by Shri T. Anjani Kumar, Secretary.
In the above WhatsApp group, members exchanged messages regarding
purchase price of waste paper, selling price of Kraft Paper, shutting down of
mills, pollution related matters, fuel/electricity related matters, overall market
condition of Kraft Paper industry in India and labour related matters.
Yes, SSSP shared the selling price of Kraft Paper, purchase price of waste
paper and collective shutting down of mills in the aforesaid WhatsApp group.
I admit that myself representing SSSP also exchanged purchase price of waste
paper, selling price of Kraft Paper, details of shutting down of mills etc. In this
WhatsApp group, members including me decided to control the price of waste
paper just to save my mill from permanent closure.”
Case No. 24 of 2017 311

144.7 Further, when confronted with the backup of WhatsApp group, namely, “Hyd
Kraftmills Assn HKPMA”, Mr. Santhwal admitted that he sent the following messages
regarding confirmation of price hike of Kraft paper of OP–103 in the said group:
On 05.09.2017 at 10:44, Mr. Anjani Kumar, Secretary of HKPMA sent the following
message:
“Observations and decisions taken during yesterday's meeting

1. There is acute wastepaper shortage as material flowing to vapi and
aurangabad
2. Elaborate discussion on NO CREDIT to market. Everyone agreed it would
solve all our problems and is the best thing if it can be implemented. Decision
taken to discuss this point during next meetings also and then decide on how
and when to implement
3. Decided to increase finish prices by Rs.2000/–with immediate effect 14–
26.50, 16– 28.50, 18–29.50 and so on. These prices are no credit prices ie.
Immediate payment prices.
4. Wastepaper. It has been advised to buy wastepaper even if required by
paying more. No restrictions on wastepaper prices.”
On 12.09.2017 at 17:57, Mr. Anjani Kumar sent another message:
“Peproll, vl, sarma, kanishka, saitirumala, hyd paper mill, sudhavarshini and
hans have increased prices. What about others. Can you all confirm please”.
In reply to the above messages, Mr. Deepak Santhwal of OP-103 sent the following
message on 12.09.2017 at 18:04:
“ssspfp increased too”

On 21.12.2017 at 22:15, Mr. Anjani Kumar sent the following message:
“Today's decisions. 1. Increase finish price by 1000/– wef 25th Dec 2. Limit
credit period to 45days wef 1st Jan 2018 3. Forward defaulters list from every
mill”
In reply, Mr. Deepak Santhwal sent the following message on 25.12.2017 at 18:52:
“Dear corrugators and dealer Due to increase in waste paper price and short
of occ inwards and rise in production cost. We are increasing fp by Rs1000/–
per ton w.e.f 20/dec/2017 Note:– depending upon market further rate
correction from jan2018 Thanks for your support Sri sai strength papers”
Case No. 24 of 2017 312

meetings:

25.04.2015 and 26.04.2015 25.04.2015 and 26.04.2015
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015,
10.05.2015 and 17.05.2015
16.05.2015 and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 06.09.2015, 13.09.2015 and
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015 27.09.2015
01.11.2015, 07.11.2015, 11.11.2015, 12.11.2015,
15.11.2015, 21.11.2015, 22.11.2015, 28.11.2015 and 01.11.2015
29.11.2015
11.02.2017 to 15.02.2017 11.02.2017 to 15.02.2017
13.03.2017 and on 12.03.2017
11.03.2017 to 15.03.2017
and 14.03.2017 (partially)
145. OP–104 (Reliable Paper and Boards Mills Private Limited)
Mohammed Mubeenuddin @Imran, son of the Managing Director Mr. Mohammed
Sirajuddin, attended meetings of HKMA dated 20.04.2015, 24.08.2015, 12.10.2015,
down of mills, etc., were held. He was also a member of the WhatsApp group, namely,
“Hyd Kraftmills Assn HKPMA”, wherein members used to discuss about price hike of
Case No. 24 of 2017 313

Kraft paper, raw material prices and shut–down schedule of Kraft paper mills. Further,
from OP-104’s e-mail account, e–mails dated 24.04.2015, 26.08.2015, 06.10.2015,
16.10.2015, 03.12.2015 and 07.03.2016 sent by HKPMA were recovered.
145.2 In his statement recorded before the DG, Mr. Mohammed Mubeenuddin @Imran,
who looks after the day–to–day business of OP–104, acknowledged as under:
“Myself or RPBM is not a member of HKPMA however, I have attended a

maximum of 3 meetings of HKPMA since 2013. The last meeting of HKPMA
was attended by me during 2016. …
In the HKPMA meetings which I have attended in 2016, attendees including me
discussed about scarcity of waste paper, the prices of waste paper, to fix the
prices of finished paper as well as collective shutting down of mills. I have not
attended any meeting after 2016. However, I attended around 3 meetings of
HKPMA in 2016 wherein the said discussion took place. I have not attended
any meeting of HKPMA prior to 2016.
The schedule of meetings used to be communicated by Shri Anjani Kumar,
Secretary of HKPMA through telephonic messages and WhatsApp
communications.
Yes, I am a member of the WhatsApp group namely “HKPMA” operated by the
Shri Anjani Kumar, Secretary HKPMA …
In the WhatsApp group namely HKPMA members including me discussed the
price of waste paper, price of finished paper as well as collective shutting
down of mills, agenda, place and time of HKPMA meetings, minutes of the
meetings of HKPMA, decisions of HKPMA meetings, pollution related matters.
In the HKPMA meetings in which I have attended most of the attendees were
either owner of the mills or employee/representative of mills from Telangana
State.”
145.3 When confronted with MoMs of various HKPMA meetings, Mr. Imran admitted that
he attended the said meetings representing OP–104 and shared the price of waste paper
and Kraft paper therein. He also admitted that OP–104 implemented the price hike
decision taken in HKPMA meeting dated 03.03.2016 partially due to increase in input
cost.
HKPMA”, Mr. Imran admitted that he was a part of the said group and that in the same,
he sent the following message supporting the collective shut–down decision of
Case No. 24 of 2017 314

HKPMA and OP–104’s manufacturing plant was also shut–down on 25.04.2015 and
26.04.2015:
Mr. Anjani Kumar, Secretary of HKPMA, sent the following message dated 25.04.2015
at 06:24:
“Let’s stop machines”

and another message on 25.04.2015 at 06:51:
“All members requested to post meter reading as of now”.

In reply to the above, Mr. Imran of OP–104 sent the following message on 25.04.2015
at 08:32:
“machine stopped at 6.00 am. Meter reading 17367246 (@ 8.30 am)”.

Subsequently, he sent another message at 08:40:
“Thanks !!! Anjani Sir, This was really required”

Mr. Anjani Kumar also sent another message on 26.04.2015 at 17:24:
“Hyd. Paper and Reliable are shut. On the way to Sai Strength”
meetings:

01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 01.05.2015, 09.05.2015, 10.05.2015,
16.05.2015 and 17.05.2015 16.05.2015 and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
17.09.2015, 18.09.2015, 26.09.2015 and 17.09.2015, 18.09.2015, 26.09.2015
27.09.2015 and 27.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
11.10.2015, 19.10.2015, 20.10.2015
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015
and 21.10.2015
and 31.10.2015
17.10.2015, 21.10.2015, 22.10.2015, 23.10.2015
21.10.2015 and 23.10.2015
and 31.10.2015
01.11.2015, 07.11.2015, 11.11.2015, 12.11.2015, 07.11.2015, 11.11.2015, 15.11.2015
15.11.2015, 21.11.2015, 22.11.2015, 28.11.2015 21.11.2015, 28.11.2015 and
and 29.11.2015 29.11.2015
06.12.2015, 13.12.2015, 20.12.2015 and 06.12.2015, 13.12.2015, 20.12.2015
27.12.2015 and 27.12.2015
Case No. 24 of 2017 315

146. OP–105 (Venkata Naga Lakshmi Paper Mills Private Limited)
Vatsavai Sitaramaraju, Director, attended, inter alia, the meeting of HKPMA dated
were held. He was also a member of the WhatsApp groups, namely, “Hyd Kraftmills
Assn HKPMA” and “APRePMA”, wherein members used to discuss about price hike
of Kraft paper, raw material prices and shutdown schedule of Kraft paper mills.
28.02.2014, 27.03.2014, 04.12.2014, 03.03.2015, 24.04.2015, 26.08.2015, 16.10.2015
and 03.12.2015 sent by HKPMA were also recovered.
146.2 In his statement recorded before the DG, Mr. Sitaramaraju, acknowledged as under:
“… I have attended some of the meeting of the Hyderabad Kraft Paper Mills
Association (HKPMA). I have also attended some of the meetings of Andhra
Pradesh Recycled Paper Mills Association (APRePMA).
In the HKPMA meetings members discussed about the price of the waste
paper, price of Kraft paper, collective shut–down of the mills, pollution related
matters, GST, power related issues, government policy related matters etc. In
the APRePMA meetings members discussed about the price of waste paper,
rate of rice husk which is used in the boilers, price of Kraft Paper, GST, power
related issues, government policy related matters etc.
I was a member of the WhatsApp groups namely “APRePMA” and “HKPMA”.
…
Case No. 24 of 2017 316

In the said WhatsApp groups, members discussed about the price of waste
paper, price of Kraft paper, collective shut–down of the mills, pollution related
matters, GST, power related issues etc.
My company has received communications regarding agenda/MOM/circulars
from HKPMA and APRePMA. …
VNLP used to receive telephonic calls, WhatsApp messages, email messages
from Sh. T. Anjani Kumar, Secretary HKPMA. Regarding, APRePMA meetings
VNLP received telephonic calls, WhatsApp messages from Sh. Murli,
Rajahmundhry Paper Mills.
VNLP shared the price of Kraft Paper, purchase price of waste paper and
shut–down details of VNLP to HKPMA or APRePMA.”
146.3 When confronted with MoMs of various HKPMA meetings since 2010 recovered
from the e–mail ID of OP–105, Mr. Vatsavai admitted to having attended the same. He
also admitted that OP–105 increased the price of Kraft paper and controlled the
purchase price of waste paper as per the HKPMA decisions. Also, when confronted
with certain other incriminating e–mails (including price hike e–mails sent by OP–97)
recovered from OP–105’s e–mail ID, Mr. Vatsavai admitted receiving the same. He
also admitted that he forwarded the price increase decisions of Kraft paper to inform
OP–97 that OP–105 is also cooperating with the other mills.
146.4 When confronted with an e–mail dated 20.09.2013 sent by OP–97 to Shri T. Trinadha
Raju of Sri Vinayaka Traders in trail e–mail of which price increase circular of OP–105
was also included which mentioned that OP–105 has increased the price of Kraft Paper
@ ₹1,000 PMT for all BFs w.e.f. 09.09.2013, Mr. Vatsavai admitted that OP–105
received the above e–mail and OP–105 increased the price of Kraft Paper @ ₹1,000
PMT w.e.f. 09.09.2013 along with OP–102, Costal Agro Industries Ltd. and OP–85
w.e.f. 10.09.2013, 17.09.2013 and 12.09.2013 respectively. He also admitted to have
shared the price of OP–105 with Mr. Rajendran of OP–97. Accordingly, he
communicated to his dealers regarding price increase by the above mills.
meetings:

25.04.2015 and 26.04.2015 25.04.2015 (partial)
Case No. 24 of 2017 317

01.05.2015, 02.05.2015 (partial),
01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015,
10.05.2015 (partial), 16.05.2015
16.05.2015 and 17.05.2015
(partial) and 17.05.2015
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015, 05.09.2015, 06.09.2015 (partial),
17.09.2015, 18.09.2015, 26.09.2015 and 12.09.2015, 13.09.2015, 17.09.2015,
27.09.2015 26.09.2015 and 27.09.2015 (partial)
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015,
03.10.2015 (partial), 10.10.2015
18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015
(partial), 21.10.2015 and 31.10.2015
and 31.10.2015
147. OP–106 (Sindhura Paper Products Private Limited)
147.1 It is noted from the DG Report that the representative of OP–106, namely, Mr. Paleti
Nageswara Rao, Managing Director, attended the joint meeting of HKPMA and
APRPMA dated 24.08.2015, wherein discussions regarding fixing of prices, shutting
down of mills, etc., were held. He was also a member of the WhatsApp groups, namely,
“Hyd Kraftmills Assn HKPMA” and “South India Kraft Paper Mills”, wherein
members used to discuss about price hike of Kraft paper, raw material prices and shut–
down schedule of Kraft paper mills.
147.2 In his statement recorded before the DG, Mr. Rao, acknowledged as under:
“SPPL is a member of Andhra Pradesh Recycled Paper Mills Association

(APRePMA) and attended most of the meetings of it. Latest meeting of
APRePMA attended by me was during 2016. … I have also attended only one
meeting of Hyderabad Kraft Paper Mills Association (HKPMA) before 2016.
Case No. 24 of 2017 318

SPPL’s Marketing Manager also attended some of the meetings of HKPMA
due to frequent pressure through telephone calls by the office bearers of
HKPMA. On certain occasions, office bearers of HKPMA used to contact other
Kraft paper mills in A.P. and subsequently those mill owners convey the
invitation to my company also. Those meetings of HKPMA being attended by
the Marketing Manager/Employee of SPPL, after the meeting, they used to
inform me about the discussion/decisions taken in the HKPMA meetings.
In the meeting of HKPMA attended by me, members discussed about the
availability/price of imported waste paper, latest technology in Kraft paper
industry and pollution related matters. In the other meetings of HKPMA in
which Marketing Manager/Employee of SPPL has attended, after the meeting
they briefed me about the discussions/decisions of HKPMA. In those HKPMA
meetings attended discussed about GST related matters, paper exhibition
details, truck overloading issues, packaging of Kraft paper for safety purpose,
electricity breakdown & usage of generator during that period. In the
APRePMA meetings being attended by me, attendees discussed about the
availability/price of imported waste paper, latest technology in Kraft paper
industry and pollution related matters.
I was a member of South India Kraft Paper Mills Association (SIKPMA) in
which Sh. K. Swaminathan was the Secretary. SPPL paid the membership fee
for a year during 2017 on the basis of the annual production of Kraft paper
and duplex board in MT of SPPL multiplied by Re. 1/–. I was also a member of
the WhatsApp group namely, South India Kraft Paper Mills Association
(SIKPMA) operated by Sh. K. Swaminathan, Secretary for one year during
2017. In the above WhatsApp group mill owners of Kraft paper, White paper
and Duplex board were members. …
In the above WhatsApp group, members exchanged the messages regarding
imported waste paper availability/price, details of the meetings of SIKPMA,
Govt. policy related matters, taxation issues, pollution related matters and
details about the commencement of new paper mills.
SPPL received communications regarding the meetings of APRePMA, HKPMA
and SIKPMA through WhatsApp, SMS messages and telephonic message.”
147.3 When confronted with a few MoMs of HKPMA meetings, Mr. Rao admitted to
having shared the purchase price of waste paper, price of Kraft paper and shut–down
details of OP–106 in the meetings. He also admitted that OP–106 used to implement the
decisions of APRPMA partially regarding price hike of Kraft paper and shut–down its
manufacturing plant as per HKPMA decisions.
Case No. 24 of 2017 319

147.4 It is noted from the DG Report that HKPMA/APRPMA had collectively decided to
increase the price of Kraft paper by ₹2,000 during the first half of March 2017. From
the e–mail ID of OP–106, an e–mail dated 07.03.2017 was also recovered along with
trailing e–mail sent by OP–106 to Shivaram Traders which stated that “Dear sir, Kind
Attn Mr. Narayana Swamy, Please note that we have sent a price list today only,
whereas due to steep hike in raw material, chemicals, shortage of raw materials, our
paper mill association took a decision for increasing selling price i.e. Rs. 2000/MT with
immediate effect in addition to pervious prices. Sorry for the inconvenience caused to
you to in this regard and we are humbly request you to extend your cooperation … P.
V. Prasad, General Manager, SPPL” and which contained an attachment regarding
price list dated 07.03.2017 showing an increase of ₹2,000 PMT in Kraft paper prices.
147.5 Further, it is noted from the DG Report that another e–mail dated 22.11.2017 along
with trailing e–mail was also sent by Mr. K. Swaminathan, Secretary of SIKPMA, to
OP–106, in which a circular requesting OP–106 to pay membership fee of ₹5,000 and
annual charges of ₹15,000 was attached. Another e–mail dated 30.11.2017 along with
trailing e–mail sent by OP–106 to SIKPMA in which it was written that “Dear
Swaminathan (Secretary, South India Duplex Board Mfrs Assn) We are very much
thankful to you for including us in your Duplex Board Mfrs Assn. today we have
transferred Rs. 5000/– through NEFT bearing UTR No. SBIN717334108302 in favour
of SOUTH INDIA KRAFT PAPER MILLS ASSN … P. Nageswara Rao, MD, SPPL”
was also seen. In this regard, Mr. Rao, in his statement, stated that “I admit that SPPL
has paid the membership fee of Rs. 5000/– to SIKPMA. But SPPL never paid any
further membership fee to SIKPMA even after repeated request from SIKPMA.”
147.6 It is further noted from the DG Report that the following shut–down dates of OP–106
as shown in its RG–1 Register partially match the shut–down dates declared in
HKPMA meetings:

01.05.2015, 02.05.2015, 09.05.2015, 10.05.2015, 01.05.2015, 02.05.2015,
16.05.2015 and 17.05.2015 16.05.2015 and 17.05.2015
05.09.2015, 06.09.2015,
05.09.2015, 06.09.2015, 12.09.2015, 13.09.2015,
12.09.2015 (partially) and
17.09.2015, 18.09.2015, 26.09.2015 and 27.09.2015
13.09.2015
02.10.2015, 03.10.2015, 10.10.2015, 11.10.2015, 02.10.2015 and 03.10.2015
Case No. 24 of 2017 320

18.10.2015, 19.10.2015, 20.10.2015, 21.10.2015 and
31.10.2015
01.11.2015, 07.11.2015, 11.11.2015, 12.11.2015,
15.11.2015, 21.11.2015, 22.11.2015, 28.11.2015 and 07.11.2015
29.11.2015
06.12.2015, 13.12.2015, 20.12.2015 and 27.12.2015 13.12.2015 (partially)
07.08.2016, 14.08.2016, 15.08.2016, 21.08.2016, 07.08.2016 (partially), 15.08.2016
27.08.2016 and 28.08.2016 and 27.08.2016 (partially)
04.09.2016, 10.09.2016, 11.09.2016, 18.09.2016, 11.09.2016 and 25.09.2016
24.09.2016 and 25.09.2016 (partially)
148. OP–107 (South Indian Kraft Paper Mills Association)
148.1 It is noted from the DG Report that SIKPMA is registered as a private company under
the erstwhile Companies Act, 1956, limited by guarantee and not having share capital,
having its registered office at Chennai. It used to hold meetings of various South Indian
paper mills from time to time, details of some, as gathered from their MoMs, are as
follows:
(a) Meeting held on 28.02.2009 at Hotel Comfort Inn, Marina Towers, Chennai
wherein attendees/members discussed the price of Kraft paper and purchasing price
of waste paper. In the said meeting, attendees/members also discussed finished
paper price and purchase price of waste paper of GPMA.
(b) Meeting held on 06.03.2013 at Hotel Residency, Coimbatore, wherein member/

attendees discussed market conditions of Kraft paper. In the said meeting, Mr. K.
Case No. 24 of 2017 321

Swaminathan, Secretary of SIKPMA, informed that the mills from Gujarat/
Maharashtra made a total increase of ₹2,000 PMT and paper mills from Hyderabad
made an increase of ₹1,000 PMT. In the said meeting, members/attendees also
suggested increase in the price of Kraft paper by ₹1,500 to ₹2,000 PMT.
(c) Meeting held on 15.07.2014 at Hotel Residency, Coimbatore, wherein members/

attendees discussed the price trend of waste paper and prices of Kraft paper in
various regions. In the said meeting, Mr. R. Krishnaswamy, President of SIKPMA,
requested its members to reduce the price of local waste paper by ₹500 to ₹1,000
PMT in two phases.
(d) Meeting held on 20.08.2015 at Hotel Residency, Coimbatore, wherein members/

attendees discussed shutting down of mills on Saturdays and Sundays from
September 2015.
(e) Meeting held on 03.03.2016 at Hotel Residency, Coimbatore, wherein attendees/

members discussed price of Kraft paper, purchasing price of waste paper and
shutting down of mills. In the said meeting, attendees/members also discussed
finished paper price and purchase price of waste paper of Northern/Western
Indian/Karnataka paper mills.
(f) Meeting held on 28.01.2017 at Hotel Residency Tower, Chennai, wherein

members/ attendees discussed and decided to increase the price of Kraft paper by
₹2000/– PMT w.e.f. 01.02.2017.
148.2 It is also noted from the DG Report that Mr. K. Swaminathan, Secretary of OP–107,
attended, inter alia, the meeting of GPMA dated 15.03.2017, wherein discussions
regarding fixing of prices, shutting down of mills, etc., took place. He was also one of
the recipients of the e–mails dated 13.02.2014, 09.09.2016 and 26.11.2016 sent by
GPMA. In fact, Mr. Omprakash Rathi of OP–3, Mr. Satyanarayan Agarwal of OP–4,
Mr. Nimish Shah of OP–6, Mr. Sundeep Shah of OP–7 and Mr. Sunil Agarwal of OP–
26 also stated in their statements recorded before the DG that Mr. Swaminathan of OP–
107 used to attend the meetings of GPMA, and South Indian Kraft paper mills also used
to discuss and increase the prices of finished paper.
Case No. 24 of 2017 322

148.3 When asked about the same, Mr. Swaminathan, in his statement recorded before the
DG, admitted that “Yes, I attended one (1) meeting in 2015 in Mumbai and another
meeting in Vapi in around 2012” and further stated that he also attended a GPMA
meeting in 2017.
148.4 When asked about the discussions that took place in the 2017 GPMA meeting, Mr.
Swaminathan stated that “The attendees of the meeting were discussing price increase
and price revision of Kraft papers. They were discussing how much price of Kraft
paper is to be increased due to the cost of raw material”. When asked how much price
of Kraft paper SIKPMA informed its members to increase after the 2017 GPMA
meeting, Mr. Swaminathan answered, “Our association held a meeting on 28.01.2017
to discuss on participation in IPTA seminars in Chennai. In the said meeting, some
members suggested to increase the price of Kraft paper by INR 2000 per ton. GPMA
meeting held thereafter on 15.02.2017. My association i.e. South India Paper Mills
Assn. suggested members in 28.01.2017 meeting to increase the price by INR 2000 per
ton but members increased some price in bits and pieces in March and April 2017”. He
also stated that “My association suggested the members to stop production in case of
non–receiving of orders or non–receiving of raw material in 2017 itself”.
148.5 When confronted with the MoM of GPMA meeting dated 15.03.2017, which he had
attended, Mr. Swaminathan admitted that “Yes, I admit that I attended the said meeting
wherein GPMA decided to increase the price of Kraft paper by INR 2 per kg. I would
like to disclose that earlier also GPMA decided to increase the price of Kraft paper.
GPMA and Maharashtra paper mills were procuring raw material from South India at
higher rate due to which our association had to increase the price of both Kraft paper
and raw material” and that “I admit that GPMA and North India Paper Mills Assn used
to inform me about their decisions related to price changes and shut–down of mills”.
148.6 It is also noted from the DG Report that Mr. Swaminathan was in contact with Mr.
Sunil Agarwal, President of GPMA, and he used to exchange messages regarding
fixing of price of Kraft paper with him. Some such messages recovered from the e–mail
dump of OP–108 show that on 10.03.2017, Mr. Swaminathan had forwarded the
messages exchanged by him with Mr. Sunil Agarwal to OP–108:
Case No. 24 of 2017 323

The aforesaid messages show that on 03.04.2017, Mr. Sunil Agarwal, President of
GPMA and Mr. K. Swaminathan, informed each other about their respective price
increase of Kraft paper.
148.7 When Mr. Swaminathan was confronted with the above messages, he admitted that he
discussed the prices of Kraft paper with Mr. Sunil Agarwal over WhatsApp and
forwarded the said messages through e–mail to Mr. Nandikeshwar of OP–108.
148.8 Mr. Swaminathan also exchanged price increase messages with HKPMA and vide the
following e–mail dated 11.03.2017, forwarded the said messages to Mr. Nandikeshwar
of OP–108:
Case No. 24 of 2017 324

148.9 When Mr. Swaminathan was confronted with the aforesaid messages, he admitted to
having exchanged the same with Mr. Prem Paul Sharma, President of HKPMA as well
as with Mr. Sunil Agarwal, President of GPMA.
148.10 Mr. Swaminathan also admitted that he attended some meetings of HKPMA and used
to receive some e–mails regarding the decisions taken by HKPMA for price increase of
Kraft paper and/or shut–down of Kraft paper mills. The DG, in this regard, noted that
like Gujarat and Maharashtra paper mills have common interests, Hyderabad and South
Indian paper mills also had a common interest in fixing the prices of finished paper due
to their shared neighbourhood. Therefore, Mr. Swaminathan was in regular and
frequent contact with HKPMA. The same is also evident from the following e–mails
exchanged between HKPMA and Mr. Swaminathan:
(a) On 09.02.2016, HKPMA sent MoM dated 30.01.2016 to Mr. Swaminathan which
meeting of HKPMA was attended by Mr. Swaminathan. In the said meeting, it was
Case No. 24 of 2017 325

decided by HKPMA to shut–down the paper mills on all Sundays but this was not
agreed to by two paper mills. In the said meeting, members also discussed the
prices of waste paper as well as of finished paper. The paper mills exchanged their
selling price of Kraft paper and purchase price of raw material. It was decided in the
meeting to hold the finished paper prices. When Mr. Swaminathan was confronted
with the said e–mail, he admitted that he attended the said meeting of HKPMA and
forwarded the e–mail received from HKPMA to Mr. Krishnaswami of OP–109, the
President of SIKPMA.
(b) On 03.12.2015, Mr. Swaminathan forwarded an e–mail dated 03.12.2015 received

from HKPMA to Mr. Krishnaswami of OP–109, President of SIKPMA, as well as
certain other paper mills. In the said e–mail, HKPMA had sent the agenda of its
meeting dated 01.12.2015 and MoM thereof. In the said meeting, it was decided by
HKPMA to keep caution deposits with the association and penalise mills if they
deviate from the decisions of HKPMA. Further, it was decided to hold the prices of
finished paper. When Mr. Swaminathan was confronted with the said e-mail, he
admitted having received the same and forwarded the same to the President of
SIKPMA, Vice–President of SIKPMA, Mr. Nandikeshwar of OP–108 Mr. Vijay
Sekhar of OP–97 and Mr. Manish Patel of OP–111, the former President of
SIKPMA.
(c) On 26.08.2015, Mr. Swaminathan forwarded an e–mail dated 26.08.2015, received

from HKPMA, to Mr. Krishnaswami of OP–109, President of SIKPMA, as well as
certain other paper mills. In the said e–mail, agenda of HKPMA meeting dated
24.08.2015 and MoM thereof were attached. From the MoM of the said meeting, it
is seen that in the said meeting, members discussed and shared selling price of Kraft
paper and purchase price of waste paper. When Mr. Swaminathan was confronted
with the said e–mail, he admitted that he received the said e–mail from HKPMA
and forwarded the same to the President of SIKPMA and others.
(d) On 28.01.2015, Mr. Swaminathan forwarded an e–mail dated 28.01.2015 received

from HKPMA to Mr. Krishnaswami of OP–109, President of SIKPMA, as well as
to certain other paper mills wherein the agenda of HKPMA meeting dated
Case No. 24 of 2017 326

22.01.2015 and MoM of the same were attached. From the MoM of the said
meeting, it is seen that in the said meeting, members discussed and shared the
selling price of Kraft paper as well as purchasing price of waste paper. When Mr.
Swaminathan was confronted with the said e–mail, he admitted that he received the
said e–mail and forwarded it to various mills paper mills of SIKPMA.
(e) An e–mail dated 03.03.2015 was also sent by OP–97 to different paper mills as well
as to Mr. Swaminathan, wherein OP–97 attached a draft letter to be sent to the
dealers/ customers regarding stopping of taking orders. When Mr. Swaminathan
was confronted with the said e–mail, he admitted that he received the said e–mail
from OP–97 to inform him as well as other paper mills regarding their stopping of
taking orders.
(f) On 20.02.2017, Mr. Swaminathan also forwarded an e–mail to OP–97 which

contained the following letter sent to South India Corroborated Box Manufacturers
Association informing that SIKPMA cannot consider their request to hold the price
increase:
Case No. 24 of 2017 327

Case No. 24 of 2017 328
When Mr. Swaminathan was confronted with the aforesaid letter, he admitted that
he issued the said letter on behalf of SIKPMA in response to a letter dated
08.02.2017 received from South India Corrugated Box Manufacturers Association,
whereby they requested not to increase the price of Kraft paper. The above letter
clearly shows that SIKPMA was involved in fixing/ increasing the price of Kraft
paper and such price increase or fixing price by SIKPMA was a formal arrangement
wherein it used to inform the customers or their associations on behalf of the
members through written letters.
148.11 It is also on record that on 06.03.2013, a meeting of SIKPMA was held at Hotel
Residency, Coimbatore wherein Mr. Swaminathan informed that the mills from
Gujarat, Maharashtra and Hyderabad have increased their prices. The members of
SIKPMA also decided to increase their prices by ₹1,000 PMT and a draft letter for
price increase to be issued to the dealers/customers by the paper mills was also
discussed. With regard to the above meeting, on 07.03.2013, Mr. Swaminathan sent an
e–mail dated 07.03.2013 to OP–109 and OP–114 along with trailing e–mails. When
Case No. 24 of 2017 329

Mr. Swaminathan was confronted with the same, he admitted that he sent the said e–
mail and a meeting was held on 06.03.2013 wherein the aforesaid discussions/decision
took place.
148.12 On 13.04.2017, OP–97 also sent an e–mail to Mr. Swaminathan and others attaching a
copy of its price increase circular. The said e–mail was forwarded by Mr. Swaminathan
to the paper mills under SIKPMA. When Mr. Swaminathan was confronted with the
said e–mail, he admitted that he sent the said e–mail to the other paper mills as OP–97
had informed about its price increase.
148.13 It is also noted from the DG Report that Mr. Swaminathan was a member of the
paper, price of raw material waste paper, and collective shut–down of mills took place.
He himself admitted his membership in the said WhatsApp group before the DG.
148.14 It is also noted that the Informant had filed a letter dated 28.01.2017 issued by
SIKPMA to its member paper mills to increase the price of Kraft Paper by ₹2,000 per
ton from 01.02.2017, along with the Information. When confronted with the said letter,
Mr. Swaminathan admitted to having issued the same. Mr. Swaminathan also confessed
that SIKPMA was involved in deciding/suggesting/directing the members to increase
the price of Kraft paper since 2012. He also confessed that he is aware that the conduct
of SIKPMA, of discussing the price of Kraft paper and accordingly revising the same,
is anti–competitive.
148.15 It is, thus, evident from the above WhatsApp communications and e–mails as well as
confessional statements of Mr. Swaminathan that SIKPMA was involved in fixing the
price of Kraft paper with HKPMA and GPMA.
148.16 It is also noted from the DG Report that, on 23.08.2015, Mr. Swaminathan sent an e–
mail to Mr. Vijay Sekhar of OP–97 with a copy to certain other paper mills informing
that he had spoken with Vishnupria Paper Mill and OP–113 regarding shut–down. The
said e–mail was sent by Mr. Swaminathan on the appeal of another association i.e.
APRPMA, to Telangana and Andhra Pradesh mills to shut–down their mills. When Mr.
Swaminathan was confronted with the said e–mail, he admitted that he had sent the said
e–mail. He also disclosed that APRPMA had appealed to SIKPMA to support the shut–
Case No. 24 of 2017 330

down decision and accordingly, SIKPMA also suggested its members to shut their
mills.
148.17 The said e–mail and statement thereon of Mr. Swaminathan clearly indicates that
SIKPMA was involved in collective shut–down of mills as well.
148.18 In its suggestions/objections to the DG Report, OP–107 made several submissions

similar to those made by the other OPs. Further, it also submitted that the DG has not
made any industry specific analysis. It has not placed on record any data or economic
analysis of actual prices of the OPs, or data or analysis relating to the OPs’ market
share and total market, or data or analysis relating to entry and exit of Kraft paper mills
during the period of investigation. In the absence of such data, the case of the DG
seems to be solely built on sharing of price increase information and shut–down of
mills. Whether exchange of such information actually led to any price increase or shut–
down, or there were other reasons for such shut–down, has not been verified by the DG.
Moreover, circumstances and market structure leading to such sharing of information
have also not been considered by the DG. The DG has also not been able to prove that
exchange of any information led to AAEC in India by creation of barriers to new
entrants in the market, or driving of existing competitors out of the market, or
foreclosure of competition in the market.
148.19 In regard to the above submissions made by OP–107 and the fact that such
discussions and decisions were actually taken at OP–107 platform, the Commission
notes that the provisions of Section 3(1) of the Act not only proscribe agreements
which cause an AAEC in the market, but also forbid agreements which are likely to
cause an AAEC in the market. Further, once an agreement of the types specified under
Section 3(3) of the Act is established, the same is presumed to have an AAEC within
India. Unless the parties are able to rebut such presumption of AAEC by showing
positive effects emanating from the cartel activity in terms of the factors stated under
Section 19(3) of the Act i.e. accrual of benefits to the consumers, improvement in
production or distribution of goods or provision of services, or promotion of technical,
scientific and economic development by means of production or distribution of goods
or provision of services, the presumption of AAEC stands. In the present matter, OP–
107 or any of the other OPs, have been unable to rebut such presumption. Thus,
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discussions itself on collective price increase and collective shut–down at OP–107
platform compromised the ability of the competitors to act independently in the market.
Hence, such discussions were likely to cause AAEC in the Kraft paper mills market in
India and therefore, constitute an anti–competitive agreement within the meaning of
that OP–107 indulged in discussions with its members as well as with other
associations like GPMA and HKPMA for increasing the prices of Kraft paper and for
collective shut–down of paper mills, and also issued directives in this regard, which
conduct amounts to indirectly determining the sale prices of Kraft paper in
controlling the production, supply and market of Kraft Paper in contravention of the
provisions of Section 3(3)(b) of the Act, read with Section 3(1) of the Act, from at least
2009 to 2017.
149. OP–108 (Vishnu Paper Products Private Limited)
149.1 It is noted from the DG Report that, from the e–mail account of Mr. S.
Nanthikeswaran, Managing Director, as well as from the e–mail account of OP–108,
the DG recovered several incriminating documents. The said e–mails received/sent by
OP–108 show that Mr. Nanthikeswaran attended most of the SIKPMA meetings
wherein members/attendees, including OP–108, discussed/decided the prices of Kraft
paper and collective shut–down of paper mills.
149.2 In his statement recorded before the DG, Mr. S. Nanthikeswaran, acknowledged as
under:
“SIKPMA used to conduct 3 – 5 meetings every year and as an office bearer of

the above association I used to attend most of the meetings except when I am
out of station or engaged due to my busy schedule. Mill owners from the states
of Tamil Nadu, Kerala, Karnataka and Andhra Pradesh (before bifurcation of
the state) used to attend the meetings of SIKPMA. Around the year 2017
onwards, mill owners from the state of Tamil Nadu alone regularly attend the
meetings of SIKPMA. Other mill owners from Kerala, Karnataka, Telangana
and Andhra Pradesh rarely attend the meetings of SIKPMA at present.
I am Honorary Vice President of SIKPMA since 2010.
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In the SIKPMA meetings, attendees used to discuss the price of Kraft Paper,
price of waste paper, collective shutting down of mills, policy decisions of the
government in different states representing the mills, duties/taxes, electricity
issues and pollution relation matters. SIKPMA also used to record
discussions/decisions of the meetings and communicate it to its
members/attendees through post, email and WhatsApp group namely “South
India Kraft Paper Mills Association”.”
149.3 When Mr. Nanthikeswaran was confronted with the recovered e–mails, he further
“I admit that my company has received/sent the above emails. As the Vice
President of SIKPMA and MD of VPPP I have attended most of the meetings of
SIKPMA. During the meeting attendees including me discussed the price of
Kraft Paper, the price to be fixed of waste paper and collective shutting down
of mills. Accordingly, Shri K. Swaminathan used to communicate the decisions
of SIKPMA to its members/attendees including my company. SIKPMA’s
members increased the price of Kraft Paper due to heavy increase in the input
cost. The decision of SIKPMA to shut–down the member mills collectively
because of the scarcity of waste paper. My company was also collectively
implemented the price hike decision of SIKPMA due to heavy increase in the
input cost. Regarding shut–down VPPP also shut–down its mills partially as
per the SIKPMA decision, due to shortage of raw material.”
149.4 It is also noted from the DG Report that Mr. Nanthikeswaran was a member of
WhatsApp groups “South India Kraft Paper Mills” and “Pondy Group”.
149.5 From the backup of “Pondy Group”, the DG noted that its members including Mr.
Nanthikeswaran used to exchange prices of Kraft paper and decide collective shut–
down of mills. When Mr. Nanthikeswaran was confronted with the backup of the said
WhatsApp group, he confessed that he was a member of the same in which members
used to send messages regarding shut–down of mills, prices of waste paper and prices
of finished Kraft paper in Puducherry. Further, he stated that Mr. K. Swaminathan of
OP–107 also used to share the decisions of SIKPMA in the said WhatsApp group
regarding shut–down of mills and price of Kraft paper in Puducherry.
149.6 When Mr. Nanthikeswaran was confronted with the backup of WhatsApp group
“South India Kraft Paper Mills”, he admitted that he, along with other mill owners of
South India, were members of the said WhatsApp group.
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149.7 During the course of his statement, Mr. Nanthikeswaran also confessed that OP–108’s
manufacturing plant was shut–down from 11.02.2017 to 15.02.2017 (partially or fully)
and from 11.03.2017 to 15.03.2017, as per the decisions taken by SIKPMA.
149.8 In its suggestions/objections to the DG Report, OP–108 made submissions, inter alia,
similar to those made by the other OPs, especially OP–107. The same have already
been dealt with in the earlier parts of the present order. OP–108 also tried to explain the
context of the various e–mails recovered from the e–mail ID of Mr. Nanthikeswaran.
However, in the opinion of the Commission, in light of the statement of admission
given by Mr. Nanthikeswaran, such explanations do not hold much water.
that OP-108 was part of the discussions held at SIKPMA regarding price increase of
issued by SIKPMA, fully or partially, in this regard. Such conduct of OP-108 amounts
150. OP–109 (Sripathi Paper and Boards Private Limited)
150.1 It is noted from the DG Report that Mr. R. Krishnaswamy, Chairman and Managing
Director of OP–109, was the President of SIKPMA. In his statement recorded before
the DG, Mr. Krishnaswamy acknowledged as under:
“As a member I started to attend the meetings from 2003 i.e. since the
inception of SPB. I became the President of SIKPMA in 2011–12 and used to
attend 4–5 meetings every year. … Informally we also used to discuss in the
meetings about the market conditions, the current price of Kraft Paper, waste
paper, chemicals, coal supply situation, power situation, demand of Kraft
Paper and other general discussions.”
150.2 It is also noted from the DG Report that Mr. Krishnaswamy was a member of
WhatsApp groups “NEWS Paper Mills” and “South India Kraft Paper Mills”. In this
regard, Mr. Krishnaswamy admitted in his statement as under:
“In the above WhatsApp groups, members used to exchange information

regarding domestic/import price of waste paper, price increase/decrease of
Case No. 24 of 2017 334

Kraft Paper at various cities, shutting down of mills,
pollution/power/water/Tax related matters, developments in Kraft Paper
industry in various locations.”
150.3 He also confessed that “… SPB used to receive communications regarding
meetings/MOM. May be SPB has also received information regarding market scenario
which includes price of Kraft Paper, raw materials such as waste paper, chemicals,
power and fuel etc….”
150.4 From the backup of the WhatsApp group, namely, “NEWS Paper Mills”, it is
observed that Mr. Krishnaswamy shared the following message in the same on
22.02.2017 at 12:49:51 regarding shut–down of his company’s manufacturing plant:
It can be seen from the aforesaid messages that one Mr. Sunil Patel informed that the
auto plant association will not upload material from 23.02.2017 to 26.02.2017.
Thereafter, Mr. Sunil Patel further informed to continue the shut–down schedule from
11.03.2017 to 15.03.2017. In response to the said message, Mr. Krishnaswamy replied
that the mills have stopped production to cut excess production so that raw material
prices do not increase further.
150.5 It is also noted from the DG Report that the manufacturing plant of OP–109 was in
fact shut–down from 11.03.2017 and 15.03.2017 (partially) and from 12.03.2017 to
14.03.2017 (fully) which dates match the shut–down schedule mentioned in the above
message. The manufacturing plant of OP–109 was also shut on 11.02.2017 and
15.02.2017 which dates also match the shut–down schedule declared by SIKPMA. Mr.
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Krishnaswamy also admitted to such shut–downs. He also admitted that the members of
SIKPMA used to discuss about collectively shutting down of mills in order to reduce
losses and control the prices of the waste paper.
150.6 When Mr. Krishnaswamy was confronted with certain MoMs/Gist of Meetings of
SIKPMA dated 28.02.2009, 06.03.2013, 15.07.2014, 03.03.2016 and 28.01.2017,
which meetings he had attended, he confessed that he had attended the said meetings of
SIKPMA wherein members/attendees discussed the prices of Kraft paper, prices of
waste paper, and also decided to increase the prices of Kraft paper and control the
prices of waste paper.
150.7 Mr. Krishnaswamy was also confronted with the MoM of GPMA meeting dated
13.03.2017 which was also attended by Mr. Swaminathan, Secretary, SIKPMA. It is
seen from the said MoM that, in the said meeting, GPMA had decided to increase the
prices of Kraft Paper @ ₹2 per kg with immediate effect. On this MoM, Mr.
Krishnaswamy admitted that Mr. Swaminathan had attended the said meeting of
GPMA to know the prices of Kraft paper and price of waste paper in Gujarat and
Maharashtra region.
150.8 Mr. Krishnaswamy was also confronted with the e–mail dated 28.08.2015 sent by
SIKPMA to its Vice President. Via said e–mail, Mr. Swaminathan had informed the
Vice–President about OP–109 confirming the stoppage of production for Saturdays and
Sundays in the month of September 2015. It is noted from the DG Report that the
manufacturing plant of OP–109 was, in fact, shut on 05.09.2015 and 06.09.2015
(Saturday and Sunday). On this, Mr. Krishnaswamy admitted that OP–109’s
manufacturing plant was shut–down on these dates to reduce losses.
150.9 Mr. Krishnaswamy was also confronted with the e–mail dated 16.08.2011 sent by Mr.
Swaminathan to OP–109 along with agenda of SIKPMA meeting to be held on
27.08.2011 at Hotel Atria, Bengaluru. It is seen from the agenda shared that Mr.
Swaminathan had shared information to OP–109 regarding increase in price of Kraft
paper @ ₹1,250 from 06.08.2011 by GPMA. In regard to this e–mail, Mr.
Krishnaswamy again admitted that OP–109 had received the said e–mail.
150.10 Mr. Krishnaswamy was also confronted with other e–mails dated 09.02.2016,
03.12.2015, 26.08.2015 and 28.01.2015 sent to OP–109 by Mr. Swaminathan. It is seen
Case No. 24 of 2017 336

from the said e–mails that Mr. Swaminathan forwarded the MoMs of HKPMA
meetings regarding increase in the prices of Kraft Paper. In regard to these e–mails, Mr.
Krishnaswamy admitted that OP–109 received the said e–mails and the same were sent
by Mr. Swaminathan for information purposes.
150.11 Mr. Krishnaswamy was also confronted with another e–mail dated 13.04.2014 along
with price increase letter sent by Mr. Swaminathan to OP–109 whereby the price
increase decision of Kraft paper of OP–97 was communicated by it to HKPMA and
subsequently the same was forwarded to Mr. Swaminathan. Mr. Krishnaswamy
admitted that the aforesaid e–mail was sent to OP–109 for information purposes.
151. OP–110 (Sri Pariyur Amman Kraft Papers Private Limited)
151.1 It is noted from the DG Report that Mr. K. M. Shanmugha Perumal, Managing
Director, used to attend the meetings of SIKPMA and he was a member of WhatsApp
group “Coimbatore Mills” and from his e–mail account, WhatsApp chats “Kapil
Akesra” and “Directors Pariyurammam” were also recovered.
151.2 In his statement recorded before the DG, Mr. Perumal acknowledged as under:
“… SPAK is a member of South India Kraft Paper Mills Association (SIKPMA)

since 2009 (Appx.). SIKPMA used to conduct 3 – 4 meetings every year and I
used to attend one or two meetings in a year. … I have attended a maximum of
8 –10 meetings of SIKPMA till date. In the SIKPMA meetings in which I have
attended attendees discussed issues related to price of waste paper
Case No. 24 of 2017 337

domestic/imported, price of Kraft Paper, shutting down of mills due to
shortage of waste paper/lack of orders, pollution norms, central government
schemes, post budgetary discussions, GST matters, recovery of bad debts etc.
SPAK used to receive email message, WhatsApp message or telephone calls
from Shri K. Swaminathan, Secretary of SIKPMA. SIKPAM sometimes send
Agenda and MOM/gist of the meetings through email.”
151.3 Further, when confronted with various MoMs of SIKPMA, Mr. Perumal confessed
attending the said meetings and implementing the Kraft paper price increase decisions
taken therein.
151.4 Mr. Perumal also acknowledged that he attended one meeting of HKPMA dated
23.03.2014 wherein he gave a presentation on Kraft paper pricing and price index. He
confessed that in the said meeting, attendees/members also discussed purchasing price
of waste paper and selling price of Kraft paper. Such statement of Mr. Perumal points
to the fact that Mr. Perumal was also in contact with HKPMA for discussing/deciding
the prices of Kraft paper.
151.5 It is seen from the WhatsApp chat of “Kapil Akesra” that Mr. Perumal exchanged
messages regarding price of waste paper, prices of Kraft Paper with one Mr. Kapil of
Aksara Paper Mill, Erode, Tamil Nadu. When Mr. K. M. Perumal was confronted with
the said WhatsApp chat, he confessed that he used to exchange the price of Kraft paper
and waste paper with Mr. Kapil of Aksara Paper Mill.
151.6 Hence, admittedly, OP–110 was involved in fixing and increasing the price of Kraft
paper in collusion with other members of SIKPMA.
151.7 It is further seen that on 10.03.2017 at 08:06:24, Mr. Perumal shared a message in
chat “Directors Pariyurammam” regarding shut–down of paper and board mills from
11.03.2017 to 15.03.2017. The said dates of shut–down match the shut–down dates
declared by SIKPMA and observed by many other paper mills of South India. Mr.
Perumal also shared a message regarding the decision of the mills to collectively
increase the price of Kraft paper by ₹2,000 PMT again and totalling ₹4,000/– PMT. On
this chat, Mr. K. M. Perumal confessed that OP–110’s manufacturing plant was closed
on the aforesaid days as per the decisions of SIKPMA. It is further noted that the
manufacturing plant of OP–110 was also shut from 11.02.2017 to 15.02.2017 (5 days)
which dates also match the shut–down decision of SIKPMA. When Mr. K. M. Perumal
Case No. 24 of 2017 338

was confronted with the same, he confessed that OP–110’s manufacturing plant was
shut–down on the aforesaid dates as per the decision of SIKPMA.
151.8 Further, when Mr. Shanmugha was confronted with the e–mail dated 28.08.2015 sent
by SIKPMA to OP–110, wherein OP–110 had confirmed the stoppage of production for
Saturdays and Sundays in the month of September 2015, he admitted that the
company’s manufacturing plant was shut–down on the aforesaid days. It is also noted
from the DG Report that the manufacturing plant of OP–110 was indeed shut–down on
05.09.2015, 06.09.2015, 13.09.2015, 20.09.2015 and 27.09.2015 (Saturday/Sunday).
151.9 The said matching of shut–down dates as well as statement of Mr. Perumal shows that
OP–110 was involved in collective shut–down of mills as well.
152. OP–111 (The South India Paper Mills Limited)
152.1 It is noted from the DG Report that Mr. Manish Patel, Managing Director, used to
attend the meetings of SIKPMA and he was a member of the WhatsApp groups “South
India Kraft Paper Mills” and “Karnataka Mills”, as well as “NEWS Paper Mills”
wherein discussions regarding price of Kraft paper, price of raw material waste paper,
and collective shut–down of mills took place. Mr. Patel himself admitted to his
membership in the said WhatsApp groups before the DG.
152.2 In his statement recorded before the DG, Mr. Manish Patel acknowledged as under:
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“TSIP is a member of South Indian Kraft Paper Mills Association (SIKPMA)
since the inception of SIKPMA that is in the late 1980’s. TSIP is paying annual
subscription calculated on the actual production of Kraft Paper in a year
multiplied by Re.1/–.
Yes, myself or Shri Ramprasad, GM Commercial used to attend the meetings of
SIKPMA. I used to attend one meeting every year if possible. As far as I can
remember, I have attended 2 – 3 meetings in the last 3 years. Those meetings
which were not attended by me but attended by Shri Ramprasad, he used to
inform the discussions of SIKPMA after the meetings.
In the SIKPMA meetings members used to discuss various topics such as
prevailing market conditions of Kraft Paper/its price, government policies,
pollution matters, waste paper availability/price, information about new Kraft
Paper plants, closure of Kraft Paper plants, bad debt recovery etc.
Myself and Shri Ramprasad are members of the WhatsApp group namely
“South India paper mills” and “Karnataka Mills”. …
In the WhatsApp group “South India paper mills” members used to discuss
about scheduling of meetings of SIKPMA, availability & price of waste paper,
sale price of Kraft Paper in various markets of various grades prevailed in
South India, pollution related matters, GST, government policies etc.
… I was a member of the WhatsApp namely “NEWS PAPER MILLS.”
152.3 It is also noted from the DG Report that Mr. Manish Patel was one of the Directors in
OP–48, which has also been found to be involved in anti–competitive activities as
discussed in previous part of the present order. When Mr. Manish Patel was asked by
the DG whether any director/employee of OP–48 had informed him about collective
shut–down decision and price increase of Kraft paper by GPMA, he confessed that Mr.
Ajay, another Director of OP–48 who is also his cousin, had informed him that there
were discussions amongst the mill owners of west zone in December 2016 or January
2017, to collectively shut–down paper mills and increase price of the Kraft paper. Mr.
Manish Patel also admitted that he once exchanged price of the Kraft Paper of OP–111
with Mr. Rajesh Modi, another Director of OP–48. It is rather noted from the
WhatsApp chats backup of Mr. Manish Patel with Mr. Rajesh Modi, as retrieved by the
DG from the mobile phone of Mr. Patel that, he was regularly getting information on
prices of other paper mills from Mr. Rajesh Modi.
152.4 It is further noted from the DG Report that Mr. Manish Patel also attended the
HKPMA meeting dated 23.03.2014 wherein he gave suggestions regarding production
Case No. 24 of 2017 340

of higher BF of Kraft paper and stoppage of lower BF production. When confronted
with MoM of this meeting, Mr. Patel admitted that he attended the said meeting and
stated that, in the said meeting, members discussed the gap between demand and supply
as well as the way to resolve the excess supply of Kraft paper.
152.5 Mr. Manish Patel was also confronted by the DG with certain MoMs of SIKPMA
whereby he admitted to having attended those meetings either himself or through some
other person of OP–111 and in which price increase and collective shut–down of mills
decisions were taken. It is also noted from the DG Report that the manufacturing plant I
of OP–111 was partially shut on 19.09.2015 and 20.09.2015 (Saturday and Sunday),
and plant IV partially shut on 05.09.2015 (Saturday) and 27.09.2015 (Sunday), and
fully shut on 19.09.2015 (Saturday), 20.09.2015 (Sunday) and 26.09.2015 (Saturday),
in accordance with the SIKPMA decisions. Further, OP–111’s machine – I was also
shut from 11.02.2017 to 14.02.2017, which dates also match the shut–down declared by
SIKPMA.
152.6 Mr. Manish Patel was also confronted by the DG with the e–mail dated 16.08.2011
sent by Mr. Swaminathan, Secretary of SIKPMA, along with agenda of SIKPMA
meeting to be held on 27.08.2011 at Hotel Atria, Bengaluru. It is seen from the said
agenda that Mr. Swaminathan shared information regarding increase in price of Kraft
paper @ ₹1,250 from 06.08.2011 by GPMA. In this regard, Mr. Manish Patel admitted
that he received the said e–mail and that the said e–mail was sent to him for convening
the SIKPMA meeting at Bengaluru.
152.7 In its suggestions/objections to the DG Report, OP–111 made several submissions,

inter alia, similar to those made by the other OPs. The same have already been dealt
with in the earlier parts of the present order.
Case No. 24 of 2017 341

152.9 With respect to penalty, OP–111 made several submissions similar to those argued by
the other OPs in the matter.
153. OP–112 (Suryaans Paper)
153.1 It is noted from the DG Report that Mr. Vinod Kumar Patel, Managing Partner, used
to attend the meetings of SIKPMA and he was in fact, the Treasurer of SIKPMA also.
He was also a member of the WhatsApp group, namely, “South India Kraft Paper
Mills”.
153.2 In his statement recorded before the DG, Mr. Vinod Kumar acknowledged as under:
“SP is a member of South Indian Kraft Paper Mills Association (SIKPMA) and
SP is paying annual subscription @ Re.1/– per ton of the total actual
production of Kraft Paper of SP during every year. Myself and Shri Unnat
Patel attended about 10 meetings of SIKPMA. …
In the SIKPMA meetings members used to discuss regarding waste paper
availability & shortage, price of waste paper, price of Kraft Paper, increase in
the price of Kraft Paper, pollution matters, technical issues, GST matters etc.
Yes, for the last 7 – 8 months, I am Treasurer of SIKPMA.
Yes, I am a member of the WhatsApp group namely “South India Paper Mills”
for the last 2 – 3 years. …
In the WhatsApp group namely “South India Paper Mills” members used to
discuss regarding waste paper availability & shortage, fixing the purchase
price of waste paper, price of Kraft Paper, hike in the price of Kraft Paper,
pollution matters, technical issues and GST matters.”
153.3 When asked about how Mr. Vinod Kumar got information about SIKPMA meetings,
he answered:
“I used to get telephone calls or SMS or receive email message from Shri K.
Swaminathan, Secretary of SIKPMA to SP’s email id i.e.
[email protected] .”
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153.4 Mr. Vinod Kumar further stated that “Yes, SP used to receive Gist of the Meeting after
the SIKPMA meetings. Sometimes SP received circulars/communications from
SIKPMA”.
153.5 When confronted with two Gist of Meetings of SIKPMA where prices of Kraft paper
and/or collective shut–down of paper mills was discussed, Mr. Vinod Patel admitted
that he attended the said meetings and prices and shut–downs were discussed therein.
He also confessed that OP–112 issued price hike circulars to its customers and
implemented plant shut–downs, as per SIPKMA price hike decisions taken in such
meetings.
153.6 When confronted with an e–mail dated 28.08.2015 sent by Mr. K. Swaminathan,
Secretary of SIKPMA, where decision of stoppage of production by 23 Kraft paper
mills of South India including OP–112 on Saturdays and Sundays in September 2015
was shared, Mr. Vinod Patel admitted that his firm used to communicate to Mr.
Swaminathan regarding shut–down of OP–112’s plant.
153.7 It is also noted from the DG Report that Mr. Vinod Patel attended the meeting of
GPMA dated 15.03.2017, along with Mr. Swaminathan, Secretary of SIKPMA,
wherein discussions regarding fixation of prices, shutting down of mills, etc., were
held. In this regard, Mr. Nimish Shah of OP–6 had also stated in his statement before
the DG that meetings dated 15.02.2017 and 15.03.2017 were attended by Mr. Vinod
Patel of OP–112 amongst others. On being confronted with the MoM of the GPMA
meeting dated 15.02.2017, Mr. Vinod Patel admitted that he attended the said meeting
and “In the above GPMA meeting it was decided to hike the price of Kraft Paper by
Rs.2 Per KG, benefit of collective shut–down of mills, discussed the price of waste
paper etc.”
153.8 It is further noted from the DG Report that SIKPMA had sent an e–mail dated
04.12.2014 to OP–112 and other mills related to SIKPMA sharing information
regarding prices of waste paper, Kraft paper and collective shut–down of mills in Delhi
region. Further, e–mails dated 19.04.2014, 26.08.2015, 04.12,2014, 04.12.2014 and
16.08.2011, were also sent by SIKPMA to OP–112 and others to control the price of
waste paper. It is also seen that SIKPMA shared MoM of HKPMA meetings dated
25.11.2014 and 24.08.2015 with OP–112. It can be seen from the MoMs of the said
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meetings that members/ attendees discussed and shared selling price of Kraft paper and
purchasing price of waste paper in such meetings. On all such e–mails, Mr. Vinod
Kumar Patel admitted that he received the said e–mails.
153.9 OP–112 had also sent an e–mail dated 02.12.2014 to other SIKPMA paper mills
where Mr. Vinod Patel mentioned that paper mills owners should remain united and
suggested collective price increase/ decrease price of Kraft paper.
153.10 It is furthermore noted from the DG Report that the manufacturing plant of OP–112
was shut–down on many dates which almost match the collective shut–down schedule
decided by SIKPMA. Details of the same are as follows:
S. Dates of shut–down
Dates of shut–down of OP–112
No. declared by SIKPMA
11.02.2017 (partially – nominal production) and
1 11.02.2017 to 15.02.2017
12.02.2017 to 15.02.20178 (fully)
11.03.2017 and 15.03.2017 (partially – nominal
2 11.03.2017 to 15.03.2017
production) and 12.03.2017 to 14.03.2017 (fully)
154. OP–113 (Sastha Paper Mills Private Limited)
154.1 It is noted from the DG Report that Mr. Annamalai Perikaruppan, Managing Director,
was the Treasurer of SIKPMA for 15 years. In his statement recorded before the DG,
Mr. Annamalai Perikaruppan acknowledged as under:
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“I was the Treasurer of South India Kraft Paper Mills Association (SIKPMA)
for the last 15 years (Appx.) i.e. till February 2018. I used to attend the
meetings of SIKPMA during the above period, if the meeting of the above
Association is being held in Chennai. SPMP is a member of SIKPMA since its
inception of my company. …
In the SIKPMA meetings members used to discuss about purchase price of
waste paper, selling price of Kraft Paper, government policies, pollution
issues, market scenario, GST/Excise related matters, shutting down of mills.
SIKPMA used to conduct 3 – 4 (Appx.) meetings in a year. I have attended
most of the meetings of SIKPMA held in Chennai because I am staying there.
SPMP is to pay annual subscription @ Re.1/– Per Ton of the total actual
production of Kraft Paper in a year, but I have paid the amount after rounding
off to the nearest Rs.5000/– (Appx.)”
154.2 When confronted with two MoMs of SIKPMA where prices of Kraft paper and/or
collective shut–down of paper mills was discussed, Mr. Perikaruppan admitted that he
attended the said meetings and Kraft paper prices and collective shut–down of mills
was discussed therein. It is also seen from the MoMs of the said meetings that in the
same, attendees/members discussed about finished paper price and purchase price of
waste paper of other regions.
154.3 When confronted with various e–mails dated 16.08.2011, 07.03.2013 and 04.12.2014
(containing MoM of HKPMA meeting dated 25.11.2014) sent by SIKPMA to OP–113
and other paper mills related to SIKPMA, Mr. Perikaruppan admitted receipt of the
aforesaid e–mails. Similarly, he also admitted receipt of the e–mail dated 02.12.2014
from OP–112 and e–mail dated 04.12.2014 from OP–97 (regarding price hike of Kraft
paper and price increase of waste paper in the Delhi region).
154.4 From his e–mail ID, e–mail dated 20.03.2010 sent by Mr. S. R. Rabinder of Sennar
Paper & Boards Ltd. along with trailing e–mails was also recovered. The trailing e–
mail was a circular dated 20.03.2010 in the name of Andhra Pradesh Small Paper Mill
Association regarding price increase of Kraft paper w.e.f. 19.03.2010 due to increase in
the price of waste paper. Further, in the said e–mail, there is mention of three–time
price increase of Kraft Paper on 28.01.2010, 24.02.2010 and 06.03.2010. It is also
mentioned in the circular to maintain a minimum revised basic price for various grades
of Kraft paper. When Mr. Perikaruppan was confronted with the said e–mail, he
admitted receipt of the same.
Case No. 24 of 2017 345

154.5 Also, another e–mail dated 02.03.2013 sent by OP–113 to one Mr. Sethu along with
trailing e-mail sent by Mr. Swaminathan, Secretary of SIKPMA to OP–109, was
recovered. In the said e–mail, Mr. Swaminathan had shared the price increase of Kraft
paper by ₹1,000 PMT (total increase of ₹2,000 PMT) by the mills from Gujarat and
Maharashtra. When Mr. Perikaruppan was confronted with the said e–mail, he admitted
receipt of the same.
154.6 In his statement recorded before the DG, Mr. Perikaruppan also admitted as follows:
“Yes during the SIKPMA meeting members/attendees discussed and share the
price of Kraft Paper and purchase price of waste paper.”
“Members including me used to discuss the prices of Kraft Paper at which we
were selling, the prices at which we were purchasing the waste paper and
collective shut–down of mills, on few occasions, because we wanted to know
the market trend. Since my company and the other members were not able to
get the required price of Kraft Paper that is why on few occasions during the
period after 2009 till my tenure in 2017, we discussed that the required prices
can be tried to be obtained by collective shut–down of mills. …”
155. OP–114 (Kovai Maruthi Papers and Boards Private Limited)
155.1 It is noted from the DG Report that Mr. M. Rajagopalan, Managing Director, and Mr.
K. Soundararajan, were members of a WhatsApp group, namely, “South India Kraft
Paper Mills”. With regard to the discussions been held in the said group, Mr.
Rajagopalan stated before the DG as under:
Case No. 24 of 2017 346

“In the WhatsApp group namely “South India paper mills” members discussed
about pollution related issues, price of Kraft Paper, availability & purchase
price of waste paper both local/imported, chemicals related, labour shortage,
bad debts, accidents occurred in the factories & the ways to prevent it,
technology up–gradation, energy saving issues, Central Excise/GST related
matters, government policies and budget related matters.”
155.2 In his statement recorded before the DG, Mr. Rajagopalan also acknowledged as
under:
“KMPB is a member of South Indian Kraft Paper Mills Association (SIKPMA)

since 1997 (Appx.). SIKPMA’s annual subscription is @ Re.1/– multiplied by
the actual production of Kraft Paper in MT during the year. KMPB paid
Rs.24,000/– for the year 2018–19 on 12.04.2019. Either me or Shri K.
Soundararajan, Executive Director attended one or two meetings of SIKPMA
in a year …
In the SIKPMA meetings being attended by me members used to discuss about
pollution related issues, discussing the price of Kraft Paper, availability &
purchase price of waste paper both local/imported, chemicals related, labour
shortage, bad debts, accidents occurred in the factories & the ways to prevent
it, technology up–gradation, energy saving issues, Central Excise/GST related
matters, government policies and budget related matters
I am aware that in the SIKPMA meetings members/attendees discussed about
collective shutting down of mills.”
155.3 He also admitted before the DG that he used to receive telephonic calls/e–
mails/WhatsApp messages/SMSs from Mr. K. Swaminathan, Secretary of SIKPMA,
regarding the meetings of SIKPMA. When confronted with various MoMs of SIKPMA
where prices of Kraft paper and collective shut–down of mills were discussed, Mr.
Rajagopalan admitted that he attended the said meetings and that prices and collective
shut–downs were discussed therein. He also confessed that OP–114 had to increase the
prices of Kraft Paper partially because of heavy increase in input costs as per the
SIKPMA decisions.
155.4 When confronted with another gist of Meeting of SIKPMA wherein it was decided to
shut–down the mills on Saturdays and Sundays from September 2015, Mr. Rajagopalan
admitted to have attended the said meeting and that OP–114’s manufacturing plant was
partially shut–down on the aforesaid days. It is also noted from the DG Report that the
Case No. 24 of 2017 347

manufacturing plant of OP–114 was, in fact, partially shut on 06.09.2015 (Sunday),
12.09.2015 (Sunday) and 20.09.2015 (Sunday).
on 11.02.2017, 13.02.2017 and 14.02.2017 (3 days fully shut), 12.02.2017 and
15.02.2017 (2 days partially shut), and 13.03.2017 and 14.03.2017 (2 days fully shut)
and 15.03.2017 (partially shut), which dates match the shut–down decisions of
SIKPMA. On this, Mr. Rajagopalan confessed that OP–114’s manufacturing plant was
shut–down as per the decisions of SIKPMA.
156. OP–115 (Jagdhatri Papers Private Limited)
156.1 It is noted from the DG Report that Mr. Satish Kumar Goel, Director, was a member
of WhatsApp group, namely, “South India Kraft Paper Mills” wherein members used to
discuss the selling prices of Kraft paper, purchase price of waste paper and shut–down
of paper mills. With regard to the discussions held in the said group, Mr. Goel stated
before the DG as under:
“In the abovementioned WhatsApp group members including me discussed

about government policies, pollution related matters, GST/Central Excise and
purchase price of imported waste paper.”
156.2 In his statement record before the DG, Mr. Satish Goel also acknowledged as under:
“Yes, JPPL is a member of South Indian Kraft Paper Mills Association

(SIKPMA) since 2008 (Appx.). JPPL paid Annual Membership Fee every year
Case No. 24 of 2017 348

@ Re.1/– of the total production of Kraft Paper in MT. SIKPMA used to
conduct 3 – 4 meetings every year and I used to attend 2 – 3 meetings in a
year. Representing JPPL, I alone have attended the meetings of SIKPMA. I
have attended a total of 10 – 15 (Appx.) meetings of SIKPMA.
In the SIKPMA meetings in which I have attended, attendees discussed about
price of Kraft Paper, purchase price of waste paper local/imported, pollution
related matters, government policies, GST/Central Excise, bad debts and
collective shutting down of mills.”
156.3 Mr. Goel also admitted that he attended one meeting of HKPMA wherein
members/attendees discussed about the selling price of Kraft Paper, purchasing price of
waste paper and collective shut–down of paper mills.
156.4 When confronted with three MoMs of SIKPMA, Mr. Goel admitted to have attended
the said meetings and that discussions on Kraft paper prices and collective shut–down
took place therein. He admitted that the price increase decisions taken in SIKPMA
meeting were implemented by OP–115, though belatedly, and it is also noted from the
RG–1 Register of OP–115 that the mill of OP–115 was, in fact, shut on 19.09.2015
(Saturday) and 27.09.2015 (Sunday) (partially), which days match the collective shut–
down days decided in the SIKPMA meeting.
157. OP–116 (Sri Andal Paper Mills Private Limited)
157.1 It is noted from the DG Report that Mr. S. Velliangiri, Former Director, in his
statement recorded before the DG, acknowledged as under:
Case No. 24 of 2017 349

“Yes, SAPM was a member of South Indian Kraft Paper Mills Association
(SIKPMA) during my tenure as a Director. I have attended 4 – 5 meetings of
SIKPMA. Representing SAPM, I alone have attended the meetings of SIKPMA.
In the meetings of SIKPMA in which I have attended, members/attendees
discussed about power related matters, debt recovery, increasing the price of
Kraft Paper, purchase price of waste paper and shutting down of mills. After
attending the meetings of SIKPMA I used to inform Shri P. Subramaniam, MD
of SAPM about the discussion/decisions held in the above association
meetings. SAPM used to implement the decisions of SIKPMA partially taking
into consideration the prevailing situation including purchase price of waste
paper and selling price of finished paper.”
157.2 When confronted with MoM of SIKPMA dated 06.03.2013, Mr. Velliangiri admitted
that Mr. Selvaraj, Former Director, had attended the said meeting and that discussions
and decision on increasing Kraft paper prices took place therein. Further, when
confronted with the MoM of SIKPMA dated 15.07.2014, Mr. Velliangiri admitted that
he attended the said meeting wherein members/attendees discussed the purchasing price
of waste paper and selling price of Kraft paper. When confronted with the Gist of
SIKPMA meeting dated 20.08.2015, Mr. Velliangiri admitted that he attended the said
meeting wherein members/attendees discussed purchasing price of waste paper and
collective shut–down of paper mills on all Saturdays and Sundays from September
2015. Further, he confessed that OP–116’s manufacturing plant was shut–down on the
aforesaid days as per the SIKPMA decision. It is also noted from the RG–1 Register of
OP–116 that the mill of OP–116 was, in fact, partially shut on 06.09.2015 (Sunday),
fully shut on 13.09.2015 (Sunday) and partially shut on 19.09.2015 and 20.09.2015
(Saturday and Sunday). When confronted with the MoM of SIKPMA dated 03.03.2016,
Mr. Velliangiri admitted that he attended the said meeting wherein member/attendees
discussed the purchasing price of waste paper, selling price of Kraft paper and
collective shut–down of mills for 4 to 6 days in a month. When confronted with the
Gist of SIKPMA meeting dated 28.01.2017, Mr. Velliangiri admitted that he attended
the said meeting wherein members/attendees discussed the price of Kraft Paper, price
of waste paper and decided to increase the price of Kraft paper by ₹2,000 PMT.
Further, Mr. Velliangiri confessed that OP–116 partially implemented the said price
hike decision of SIKPMA.
Case No. 24 of 2017 350

157.3 As Mr. Velliangiri, in his statement, had disclosed that after attending the meetings of
SIKPMA, he used to inform Mr. P. Subramaniam, Managing Director, about the
decisions/ discussions taken in the meetings, the DG also recorded the statement of Mr.
P. Subramaniam. His statement corroborated that of Mr. Velliangiri, as follows:
“SAPM is a member of “South Indian Kraft Paper Mills Association

(SIKPMA)” since inception of my company. I never attended any meetings of
SIKPMA, but Shri S. Velliangiri, former Director attended 3 – 4 meetings of
the above association. SAPM’s employee might have attended few meetings of
SIKPMA along with Shri Velliangiri. After attending every meeting of the
above association, Shri Velliangiri used to inform me about the
discussions/decisions taken in the meetings.
In the SIKPMA meetings members/attendees discussed about purchase price of
waste paper, selling price of Kraft Paper, shutting down of mills and
availability of local/imported waste paper.”
157.4 Mr. Subramanian also admitted that OP–116 used to receive electronic calls from Mr.
K. Swaminathan, Secretary of SIKPMA, regarding its meetings and OP–116 also used
to receive the MoMs/Gist of Meetings of SIKPMA on his e–mail.
157.5 It is also noted from the DG Report that Mr. P. Subramaniam was a member of
WhatsApp group, namely, “South India Kraft Paper Mills” wherein members used to
discuss about the prices of Kraft paper, price of waste paper and collective shut–down
of paper mills. When Mr. Subramaniam was confronted with the backup of said
WhatsApp group, he admitted that he was a member of the same.
157.6 Further, when confronted with various MoMs/Gist of Meetings of SIKPMA, Mr. P.
Subramaniam admitted that Mr. Selvaraj and Mr. Velliangiri attended the said meetings
of SIKPMA wherein members/attendees discussed the prices of Kraft paper, price of
waste paper and collective shut–down of paper mills. He confessed that Mr. Selvaraj
and Mr. Velliangiri, after attending the meetings of SIKPMA, used to brief him about
the decisions/discussions of the meetings. Further, he confessed that OP–116 used to
partially follow the price hike and collective shut–down decisions of SIKPMA.
157.7 It is also noted from the DG Report that the manufacturing plant of OP–116 was
partially shut during 11.02.2017 to 15.02.2017 (05 days), fully shut during 11.03.2017
to 15.03.2017 (05 days) and fully shut on 10.04.2017 and 11.04.2017, which dates
match the shut–down dates declared/decided by SIKPMA. Mr. Subramaniam also
Case No. 24 of 2017 351

admitted to the said shut–downs. When confronted with the statement of Mr.
Velliangiri, he also stated the same to be correct.
158. OP–117 (Akshera Papers)
158.1 It is noted from the DG Report that Mr. Ramesh Krishnan Krishnasamy, Managing
Partner and Mr. Kapil Thomas, were members of WhatsApp group, namely, “South
India Kraft Paper Mills” wherein members used to discuss the selling prices of Kraft
paper, purchase price of waste paper and collective shut–down of paper mills. With
regard to the discussions \held in the said group, Mr. Krishnasamy stated before the DG
as under:
“Myself and Shri Kapil Thomas are members of the WhatsApp group of Kraft
Paper manufacturers of South India namely “South India paper mills”.
In the above WhatsApp group members used to discuss about pollution related
matters, government policies including GST/Central Excise, quality of
imported waste paper, availability & price of Kraft Paper and price of waste
paper.”
158.2 It his statement recorded before the DG, Mr. Krishnasamy also acknowledged as
under:
“Yes, AP is a member of South Indian Kraft Paper Mills Association

(SIKPMA) since inception. Either me or Shri Kapil Thomas used to attend one
or two meetings of SIKPMA annually.
Case No. 24 of 2017 352

n the SIKPMA meetings members/attendees used to discuss about pollution
related matters, government policies including GST/Central Excise, quality of
imported waste paper, availability and price of Kraft Paper, price of waste
paper and shutting down of mills collectively. In case I failed to attend the
meeting of SIKPMA, but if Shri Kapil Thomas attended the meeting, if any
important decision or discussion held in the above meeting he used to inform
me about the same.
Myself used to get telephone calls from Shri K. Swaminathan, Secretary,
SIKPMA. AP used to get Agenda of the meeting through post, WhatsApp
message or email.
AP used to receive MOM/Gist of the meetings of SIKPMA, but copies of the
same are not available in my records.”
158.3 When confronted with various MoMs of SIKPMA where prices of Kraft paper and
collective shut–down of mills were discussed, Mr. Krishnasamy admitted that he
attended the said meetings (and some of them were also attended by Mr. Kapil Thomas)
and that prices of Kraft paper and collective shut–down of paper mills was discussed
therein. It is also noted that the manufacturing plant of OP–117 was partially shut on
18.09.2015 (Sunday), which date matches the shut–down declared in the SIKPMA
meeting dated 20.08.2015 and OP–117 had also increased the price of its Kraft paper
by ₹2,000 PMT w.e.f. 05.02.2017 after decision in the SIKPMA meeting dated
28.01.2017. In this regard, Mr. Krishnasamy even confessed that OP–117 increased the
price of Kraft paper as per the decision of SIKPMA only and that it was compelled to
do the same due to heavy increase in the input cost, especially cost of waste paper.
158.4 Further, it is also noted from the DG Report that the manufacturing plant of OP–117
was shut during 11.02.2017 to 15.02.2017, 11.03.2017 and 14.03.2017 (partially) and
12.03.2017 and 13.03.2017, which dates also match with the collective shut–down
decisions of SIKPMA.
Case No. 24 of 2017 353

159. OP–118 (Aruldevi Paper Mills Private Limited)
159.1 It is noted from the DG Report that Mr. Parvatham Gnanavel, Managing Director, was
a member of WhatsApp group, namely, “South India Kraft Paper Mills”, wherein
members used to discuss the selling prices of Kraft paper, purchase price of waste paper
and collective shut–down of mills. It his statement record before the DG, Mr. Gnanavel
“Yes, APMP is a member of South Indian Kraft Paper Mills Association

(SIKPMA) since 2008. Either me or Shri P. Krishna Murthy or both used to
attend most of the meetings of SIKPMA. Myself and Shri P. Krishna Murthy
used to attend three to four meetings of SIKPMA every year. In case I did not
attend the meeting of SIKPMA I depute Shri P. Krishna Murthy to attend the
above meeting. After the meeting he used to inform me about the
decisions/discussions held in the SIKPMA meetings. In the SIKPMA meetings
in which myself or Shri P. Krishna Murthy attended, members/attendees
discussed about the price of Kraft Paper, purchase price of waste paper,
market conditions of Kraft Paper, government policies, pollution related
matters, debt recovery, GST/Central Excise related matters, technical issues
and collective shutting down of mills.
I used to receive telephone calls or SMS from Shri K. Swaminathan, Secretary,
SIKPMA regarding its meetings. Myself or APMP never received any message
regarding SIKPMA meeting through WhatsApp message or email message.
Earlier, SIKPMA used to send the copy of MOM/Gist of the meeting to APMP,
however during the last couple of years, aforesaid association did not sent the
same.”
159.2 When confronted with various MoMs of SIKPMA wherein prices of Kraft paper and
collective shut–down of mills was discussed, Mr. Gnanvel admitted that he and Mr.
Krishnamurthy attended the said meetings and that prices of Kraft paper and collective
shut–down of paper mills was discussed therein. He also confessed that OP–118
partially implemented the price hike decisions of SIKPMA taken in the meetings dated
06.03.2013 and 28.01.2017, belatedly. It is also noted that the manufacturing plant of
Case No. 24 of 2017 354

OP–118 was shut on 06.09.2015 (Saturday), partially shut on 05.09.2015 (Saturday),
19.09.2015 (Saturday), 26.09.2015, (Saturday) and 29.09.2015 (Sunday), which dates
match the shut–down declared in the SIKPMA meeting dated 20.08.2015.
160. OP–119 (Vaithieswara Papers and Boards Private Limited)
160.1 It is noted from the DG Report that Mr. C. Shanmugaraju, Former Director and Mr.
Thirunavukkarasu, Managing Director, were members of the WhatsApp group, namely,
“South India Kraft Paper Mills” wherein members used to discuss the selling prices of
Kraft paper, purchase price of waste paper and shut–down of paper mills. With regard
to the discussions held in the said group, Mr. Shanmugaraju stated as under:
“Myself and Shri K. Thirunavukkarasu, MD are the members of the WhatsApp

group namely “South India paper mills”. …
In the WhatsApp group namely “South India paper mills” members exchanged
messages regarding Kraft Paper industry, government policy, pollution related
matters, price of Kraft Paper, purchase price of waste paper, and GST/Central
Excise related matters.”
160.2 In his statement recorded before the DG, Mr. Shanmugaraju also acknowledged as
under:
“Yes, VPBP was a member of South Indian Kraft Paper Mills Association
(SIKPMA) since inception of my company. I have attended two to three
meetings of SIKPMA every year. On certain occasions Shri K.
Thirunavukkarasu, Managing Director attended the meetings of SIKPMA
Case No. 24 of 2017 355

along with me. Most of the meetings of SIKPMA have been attended by Shri K.
Thirunavukkarasu. VPBP used to receive email messages and sometimes
telephone calls from Shri Swaminathan, Secretary of SIKPMA regarding the
proposed meetings. I attended the SIKPMA meetings as per the directions of
Shri K. Thirunavukkarasu, MD. Whenever I attended the meetings of SIKPMA
alone, after the meeting I used to inform Shri K. Thirunavukkarasu, MD about
the decisions/discussions of the aforesaid association meetings. …
In the SIKPMA meetings in which I have attended members/attendees
discussed about price of Kraft Paper, purchase price of waste paper, collective
shutting down of mills, pollution related matters, government policy related
matters and GST/Central Excise related matters.”
160.3 It his statement recorded before the DG, Mr. Thirunavukkarasu also acknowledged as
under:
“VPBP is a member of South Indian Kraft Paper Mills Association (SIKPMA)

since 2010–11 (Appx.). I never attended any meetings of SIKPMA. Most of the
meetings of SIKPMA were attended by Shri Shanmugaraju. VPBP used to
receive information regarding the proposed meetings of SIKPMA. SIKPMA
meetings were attended by Shri Shanmugaraju alone representing VPBP. As
far as I know Shri Shanmugaraju has attended a maximum of 4 – 5 meetings of
SIKPMA.”
160.4 When confronted with various MoMs of SIKPMA wherein prices of Kraft paper and
collective shut–down of mills was discussed, Mr. Shanmugaraju admitted that he and/or
Mr. Thirunavukkarasu attended the said meetings and that prices of Kraft paper and
collective shut–down of paper mills was discussed therein. In fact, one meeting dated
03.03.2016 of SIKPMA was attended by Mr. Shiva Kumar, one of the office staff of
OP–119. Mr. Shanmugaraju also confessed that OP–119 partially implemented the
price hike decision of SIKPMA taken in the meeting dated 28.01.2017, belatedly.
on 06.09.2015 (Saturday), 15.09.2015 (Sunday), 19.09.2015 (Saturday), 20.09.2015
(Sunday), 26.09.2015 (Saturday) and 27.09.2015 (Sunday) which days match the shut–
down declared in the SIKPMA meeting dated 20.08.2015. Further, the manufacturing
plant of OP–119 was also shut on 05.04.2017, 06.04.2017, 10.04.2017 and 11.04.2017
and partially shut on 07.04.2017, 08.04.2017 and 09.04.2017, which dates again match
the collective shut–down decision of SIKPMA from 05.04.2017 to 11.04.2017. Mr.
Case No. 24 of 2017 356

Shanmugaraju as well as Mr. Thirunavukkarasu admitted that the manufacturing plant
of OP-119 was shut–down on these dates.
160.6 When Mr. Thirunavukkarasu was confronted with various MoMs of SIKPMA, he
admitted that the said meetings were attended by Mr. Shanmugaraju or any other
employee of the company and decisions regarding fixing prices of Kraft paper,
purchase price of waste paper and collective shut–down of paper mills were taken
therein. He also admitted that OP–119 implemented the price hike decisions as well as
the shut–down directions of SIKPMA.
160.7 When confronted with the statement of Mr. Shanmugaraju, Mr. Thirunavukkarasu
admitted that he attended 4 meetings of SIKPMA and confessed that OP–119
implemented the price hike decisions and collective shut–down decisions of SIKPMA.
He also admitted that the statement of Mr. Shanmugaraju is correct.
161. OP–120 (Indian Agro and Recycled Paper Mills Association)
161.1 With regards to OP–120, the Commission agrees with the findings of the DG that it
had not held any meetings related to price etc. as OP-120 had submitted that pricing of
paper and marketing of products are internal matters of each paper mill and that it was
not involved in issuing any directions to any paper mill to stop production etc.
Case No. 24 of 2017 357

Accordingly, the Commission is of the opinion that OP-120 has not contravened the
provisions of the Act.
Conclusion:
162. From the above Opposite Party wise analysis, the following conclusions emerge:
162.1 GPMA/FIPR (OP-1) was involved in increasing and deciding the price of Kraft paper
in the market and deciding collective shut–down of Kraft paper mills from at least 2011
to 2018. It also used to monitor its collective shut–down directives by sending
representatives to the paper mills to enforce the shut–down. In the discussions being
held on the platform of GPMA, at least 61 Kraft paper mills (OP–2 to OP–62) were
involved who may have joined in anytime from between 2011 to 2018. Most of such
mills also implemented the directives of GPMA, fully or partially, regarding price
increase of Kraft paper and collective shut–down of manufacturing plants. There is
ample documentary evidence available in this regard in the form MoMs of GPMA,
price hike circulars issued by GPMA, e–mail communications, WhatsApp messages
exchanged on three WhatsAspp groups i.e. of Maharashtra paper mills, “Paper Mills –
GJ/MS/CGK”, and “NEWS (North East West South) Paper Mills”, as well as oral
depositions of various representatives of these 61 paper mills. Thirty One (31) lesser
penalty applicants have also admitted to such conduct. Therefore, based on such
evidences, the Commission finds GPMA and 61 paper mills in contravention of the
provisions of Section 3(3)(a) and 3(3)(b), read with Section 3(1) of the Act.
162.2 NIPMA (OP-63) was also involved in increasing and deciding the price of Kraft paper
in the market and deciding collective shut–down of Kraft paper mills from at least 2016
to 2019. It was in constant touch with other associations like GPMA, not only through
message exchanges, but also otherwise by participation in meetings. In the discussions
held on the platform of NIPMA, at least 16 Kraft paper mills (OP–64 to OP–79) were
involved who may have joined in anytime from between 2016 to 2019. Most of such
mills also implemented the directives of NIPMA, fully or partially, regarding price
increase of Kraft paper and collective shut–down of plants. There is ample
documentary evidence available in this regard in the form of WhatsApp messages
exchanged on WhatsAspp groups, namely, “NEWS Paper Mills” and “Paper Mills”,
price hike messages, as well as well as oral depositions of various representatives of
Case No. 24 of 2017 358

these 16 paper mills. Therefore, based on such evidences, the Commission finds
NIPMA and 16 paper mills in contravention of the provisions of Section 3(3)(a) and
3(3)(b), read with Section 3(1) of the Act (except OP-77 who has been found to be in
contravention only of the provisions of 3(3)(a) read with Section 3(1) of the Act.
162.3 HKPMA (OP-80) was also involved in increasing and deciding the price of Kraft
paper in the market and deciding collective shut–down of Kraft paper mills from at
least 2010 to 2017. It was in constant touch with other associations like GPMA and
SIKPMA, not only through e-mail exchanges but also by participation in meetings. In
the discussions being held on the platform of HKPMA, 26 Kraft paper mills (OP–81 to
OP–106) were involved who may have joined in anytime from between 2010 to 2017.
Most of such mills also implemented the directives of HKPMA, fully or partially,
regarding price increase of Kraft paper and collective shut–down of plants.
Representatives of most of the member mills admitted to the existence of HKPMA and
discussions and decisions being held on its platform. There is also documentary
evidence available in this regard in the form of WhatsApp messages exchanged on
WhatsApp group, namely, “HydKraftmills Assn HKPMA”, and e–mail
communications from HKPMA, apart from oral depositions of various representatives
of the 26 paper mills. Therefore, based on such evidences, the Commission finds
HKPMA and 26 paper mills in contravention of the provisions of Section 3(3)(a) and
3(3)(b), read with Section 3(1) of the Act.
162.4 SIKPMA (OP-107) was also involved in increasing and deciding the price of Kraft
paper in the market and deciding collective shut–down of Kraft paper mills from at
least 2009 to 2017. It also used to threaten its members with monetary penalties in case
of refusal to follow its price hike and/or collective shut–down directives. It was in
constant touch with other associations like GPMA and HKPMA, not only through e-
mail exchanges, but also otherwise by participation in different meetings. In the
discussions being held on the platform of SIKPMA, at least 12 Kraft paper mills (OP–
108 to OP–119) were involved who may have joined in anytime from between 2009 to
2017. Most of such mills also implemented the directives of SIKPMA, fully or
partially, regarding price increase of Kraft paper and collective shut–down of plants.
There is ample documentary evidence available in this regard in the form of SIKPMA
MoMs and Gist of Meetings, e–mail communications, WhatsApp messages exchanged
Case No. 24 of 2017 359

on WhatsApp groups, namely, “South India Kraft Paper Mills” and “NEWS Paper
Mills”, as well as oral depositions of various representatives of these 12 paper mills.
Therefore, based on such evidences, the Commission finds SIKPMA and 12 paper mills
in contravention of the provisions of Section 3(3)(a) and 3(3)(b), read with Section 3(1)
of the Act.
162.5 In view of the above, it may be seen that the four associations made available their
platforms for anti-competitive practices such as taking decisions relating to collective
shut down of paper mills. The Commission also concludes that in the instant matter, the
OPs (four paper mill associations) have acted as a platform for its members i.e. paper
mills to fix/decide prices as well as monitoring the implementation of such decisions by
the paper mills.
Penalty and Lesser Penalty:
163. Once contravention of the provisions of the Act has been established, the Commission
now proceeds to assess the penalty to be imposed, if any, under the provisions of
Section 27(b) of the Act, upon the contravening parties.
164. The Opposite Parties have argued a host of mitigating factors before the Commission.
On the other hand, the Informants in their suggestions/objections to the DG Report,
largely agreeing with the findings of the DG, have pleaded for imposition of maximum
penalty.
165. It is noted that several Opposite Parties are MSMEs and first time offenders. They
have argued that the market structure is such that in the past few years, especially as a
fallout of COVID–19 pandemic, several Kraft paper mills stand sold/closed and several
others of these entities are going through a period of economic and financial stress.
They have also argued that the cartel was formed as a result of prevailing market
circumstances due to rising input costs and lack of individual bargaining power. Several
members of GPMA were lesser penalty applicants before the Commission and several
others have also admitted to their wrongdoings during the course of investigation. Even
members of HKPMA and SIKPMA have admitted to their wrongdoings during the
course of investigation.
Case No. 24 of 2017 360

166. Therefore, against the above backdrop, considering the matter holistically and
cumulatively, the Commission, in the interest of justice, refrains from imposing any
monetary penalty upon the Opposite Parties, keeping in mind the peculiar facts and
circumstances of the instant case, as noted above. The ultimate object of the Act is to
correct market distortions and discipline the behaviour of the market participants. The
Commission is of the considered opinion that the objectives of the Act would be met if
the Opposite Parties in the present matter are directed to cease such cartel behaviour
and desist from indulging in similar behaviour in the future.
167. The Opposite Parties are cautioned to ensure that their future conduct remains strictly in
accord with the provisions of the Act, failing which any such future conduct/behaviour
by the OPs would be viewed seriously constituting recidivism with attendant
consequences.
168. Before concluding, the Commission would like to deal with the findings of the DG
regarding cartelisation amongst the OPs with respect to fixing the prices of waste paper
in the market. Waste paper is the basic raw material required for the manufacture of
Kraft paper. Almost all the OPs have submitted that the prices of imported waste paper
is set by foreign suppliers and importers and the prices of domestic waste paper follow
the same trend. Without going into any greater detail, based on the material available
on record and considering the submissions made by the OPs in this regard, the
Commission is of the opinion that there are not enough evidences available on record
which can support the finding of the DG regarding cartelisation by the OPs with respect
to fixing the prices of waste paper in the market.
169. In view of the above, the Commission passes the following:
ORDER
170. OP–1 to OP-76 and OP-78 to OP–119 are found guilty of contravention of the
provisions of Section 3(3)(a) and 3(3)(b) of the Act, read with Section 3(1) thereof. OP-
77 is found guilty of contravention of the provisions of Section 3(3)(a) of the Act, read
with Section 3(1) thereof.
171. The Commission, in terms of Section 27(a) of the Act, directs OP–1 to OP–119 to cease
and desist in future from indulging in any practice/conduct/activity, which has been
Case No. 24 of 2017 361

found in the present order to be in contravention of the provisions of Section 3 of the
Act, as detailed in the earlier part of this order.
172. It is made clear that all information used in the present order is for the purposes of the
Act and as such, in terms of Section 57 of the Act, does not qualify for the grant of
confidential treatment.
173. The Secretary is directed to forward certified copy of the present order to the counsel
for the parties, accordingly.
Sd/-
(Ashok Kumar Gupta)
Chairperson
Sd/-
(Sangeeta Verma)
Member
Sd/-
New Delhi (Bhagwant Singh Bishnoi)
Date: 12.10.2022 Member
Case No. 24 of 2017 362

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COMPETITION COMMISSION OF INDIA

Case No. 24 of 2017

Federation of Corrugated Box Manufacturers of India Informant No. 1

Gujarat Paper Mills Association Opposite Party No. 1

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Ashok Kumar Gupta

Bhagwant Singh Bishnoi

For Informant No. 1/IP-1 (Federation of

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ORDER UNDER SECTION 27 OF THE COMPETITION ACT, 2002

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S. No. Name of Paper Mill Date and Time of Filing

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Investigation by the DG:

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23. Regarding Hyderabad Kraft Paper Mills Association (‘HKPMA’/’OP–80’), the DG

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Proceedings before the Commission:

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Gujarat Paper Mills

Opposite Party Nos. 01–62 07.03.2022 at 10:30 a.m.

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42. OP–1 (Gujarat Paper Mills Association - GPMA)

S. No. Meeting dated Attendees Decision as recorded in MoM

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Sl. Date of Rate increase per

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“GPMA – Circular Dt. 21.11.2016

(k) E-mail dated 06.01.2017:

“Present Scenario of Kraft Paper Industry

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(p) E-mail dated 18.03.2017 circulating MoM dated 15.03.2017;

“GPMA/FIPR issued price hike circular to its members/mill owners. As per my

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43. OP–2 Ramji Board and Paper Mill Private Limited

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“My company is a member of Gujarat Paper Mills Association, Vapi (GPMA)

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44. OP–3 (Kaygaon Paper Mills Limited)