Question

Five cement manufacturers in India agreed through regular meetings to maintain uniform prices and allocate market territories. Each manufacturer was assigned specific regions to operate without competition from others. Under the Competition Act, which statements are correct? Statement 1: This constitutes a cartel under Section 3 of the Competition Act. Statement 2: The manufacturers can claim exemption if they prove the agreement benefits consumers. Statement 3: The CCI can impose penalties up to 10% of turnover on each manufacturer. Statement 4: A manufacturer disclosing the cartel first can seek reduced penalties under Section 46. Which statements are correct?

A Statements 1, 3, and 4 only
B Statements 1, 2, and 3 only
C Statements 1 and 4 only
D Statements 2, 3, and 4 only
E All statements are correct
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