New Delhi, November 12, 2025 – India’s competition watchdog has launched nationwide raids at multiple paper mills amid an investigation into alleged price collusion in the supply of paper to a government school education body, according to sources with direct knowledge of the matter.

The raids, carried out by the Competition Commission of India (CCI), are part of a broader probe into cartel-like behaviour in the paper industry, which has an estimated annual turnover of $11 billion and accounts for roughly 5% of global paper production, according to the Indian Paper Manufacturers Association.

Scope and Locations of the Raids

The surprise inspections, which began on Tuesday, targeted offices and facilities across several states, including Maharashtra in western India and Punjab, Uttar Pradesh, and Delhi in the north. Sources familiar with the investigation confirmed that the offices of Satia Industries, Silverton Pulp, and Chadha Papers were among those raided. Additionally, Shreyans Industries’ office was reportedly searched as part of the coordinated operations.

Satia Industries’ Chief Financial Officer, Rachit Nagpal, confirmed the CCI raids to Reuters over a phone call, noting that the company had cooperated fully with investigators. Officials at Silverton Pulp declined to comment, while Chadha Papers and Shreyans Industries did not respond immediately to requests for comment.

Confidentiality of CCI Investigations

The CCI does not disclose the details of ongoing investigations into alleged cartelisation or raids, maintaining strict confidentiality throughout the process. Typically, such operations involve the seizure of relevant documents, mobile phone data, and the questioning of company officials.

The case in question was reportedly initiated last year following a complaint by India’s National Council of Educational Research and Training (NCERT), which procures paper from mills for the production of textbooks and other educational materials distributed across government schools nationwide. The Council did not respond to a request for comment.

Context and Background

The CCI has in recent years been active in investigating allegations of price-fixing and collusion across various sectors. Earlier this year, in March 2025, the watchdog conducted raids targeting global advertising agencies, including GroupM, Interpublic, Publicis, and Dentsu, over suspected collusion in pricing strategies.

In that case, Dentsu itself had reported the alleged collusion to the CCI and subsequently implemented stricter internal audits and controls. Investigations of this nature are complex and can take several months to conclude, as authorities examine voluminous records, communications, and internal business practices to determine if any anti-competitive behaviour occurred.

Potential Implications

If the CCI finds evidence of cartelisation or price-fixing, the companies involved could face significant penalties, including fines and restrictions on future contracts with government entities. Given that NCERT supplies textbooks to millions of schoolchildren across India, the case carries considerable public interest.

Experts note that such investigations also serve as a warning to other players in the sector, reinforcing the CCI’s mandate to maintain fair competition and prevent anti-consumer practices. The outcome of the investigation could have broader implications for the paper industry, potentially prompting changes in procurement processes and stricter compliance standards.

Next Steps

The ongoing probe will continue over the coming months as authorities review documents and interview relevant personnel. The CCI is expected to analyse pricing patterns, contracts, and internal communications to determine whether the companies coordinated to manipulate prices or restrict competition.

While the raids themselves signal the seriousness of the allegations, the watchdog has not yet made any formal statements or announced findings. Market participants and industry observers are watching closely, as any confirmed anti-competitive activity could have ramifications for procurement policies in the education sector and potentially trigger further regulatory scrutiny across related industries.

As of now, the investigation remains ongoing, and officials have cautioned that conclusions will take time, given the complexity and scale of the operations under review.

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