Top court stays Lafarge’s limestone sale for 2 weeks

The Appellate Division of Supreme Court has ordered the suspension of manufacturing and selling of aggregates by Lafarge Holcim Bangladesh Limited for two weeks.

Earlier on November 16, the High Court Division had allowed the sale in an interim order. But the Appellate Division on Tuesday stayed the High Court order for two weeks.

The multinational cement maker disclosed the development in a filing with the Dhaka Stock Exchange on Wednesday.

On September 17, the Industries Ministry issued a notice directing the company to stop its limestone sale in the open market. Aggregates are made of limestone.

Aggregates are inert granular materials such as sand, gravel, or crushed stone that, along with water and portland cement, are an essential ingredient of concrete.

The ministry imposed the ban in response to the complaints lodged by the local traders, according to a notice issued by the ministry on September 16 this year.

It directed the relevant bodies, including Sylhet and Sunamganj district administrations, to take steps in this regard.

On Wednesday, LafargeHolcim share declined 1.93 per cent to Tk 76.1 on the Dhaka Stock Exchange.

On May 5, local limestone importers wrote to the ministry about the ‘illegal’ limestone sale in the market by the multinational company as the company is allowed to import limestone from India exclusively to use as a raw material in cement production.

The traders were worried that if Lafarge continues to sell limestone in the market, local importers will be affected as they import limestone paying the tax, much higher than Lafarge does.

In 2009, the company had taken a similar move, which was halted in the face of protests from the traders. In 2016, the company had sat with the local limestone importers to settle the issue, but to no avail.

In March this year, the traders staged a protest against the sale of limestone in the open market by the cement maker.

They said the government faces a huge revenue loss due to the illegal open market sale of imported raw

materials. And the illegal selling hit the livelihood of hundreds of local limestone traders and labourers, they claimed.