A major controversy has surfaced in India’s steel sector, where prices were allegedly manipulated not by market forces but through collusion among leading companies. According to an investigation by the Competition Commission of India (CCI), some of the country’s biggest steel producers—Tata Steel, JSW Steel and state-owned SAIL—have been found guilty of colluding to fix steel prices. This information has been revealed in a report by Reuters.

Senior officials also under investigation

The case does not stop at corporate entities alone. The CCI investigation has reportedly identified the involvement of top executives as well. As per the Reuters report, price collusion took place at different points between 2015 and 2023, and as many as 56 senior officials have been named for their alleged role in this unethical practice.

Among those named are some of the most prominent figures in the steel industry. These include JSW Steel Managing Director Sajjan Jindal, Tata Steel CEO T V Narendran, and four former chairpersons of SAIL. The CCI order, dated October 6 and not yet made public, has raised serious questions about their roles. While JSW Steel has declined to comment, Tata Steel and SAIL have not issued any official response so far.

Complaint by builders triggered the probe

The investigation began after a builders’ association in Tamil Nadu approached the court, alleging that steel companies were deliberately restricting supply to create an artificial shortage and push prices higher. Acting on this complaint, the CCI launched a detailed probe, which has now become one of the largest investigations ever conducted in India’s steel sector. In the early stages, raids were also carried out at the offices of some companies.

According to reports, investigators have uncovered strong evidence. An internal document dated July 2025 reportedly mentions WhatsApp chats between regional industry groups. These chats allegedly show discussions related to production limits and price fixing. In total, 31 companies and several industry bodies are currently under the CCI’s scanner.

Shockwaves in the stock market

As soon as news of the investigation became public, it sent shockwaves through the stock market. Investors feared that if the allegations are confirmed, the companies could face massive financial penalties. Shares of Tata Steel, JSW Steel, and SAIL fell sharply, dragging the Nifty Metal Index into negative territory.

Under existing rules, the CCI has wide-ranging powers. If the allegations are upheld in the final order, the Commission can impose fines of up to three times a company’s profits or 10 percent of its turnover—whichever is higher—for each year of violation. Additionally, personal penalties may also be imposed on officials found guilty.