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Informist, Tuesday, May 5, 2026

 

NEW DELHI – The National Company Law Appellate Tribunal Tuesday set aside the Competition Commission of India's order to impose a penalty of INR 3.02 billion on Grasim Industries Ltd. for abusing its dominant position in the market for supply of viscose staple fibre. The appellate tribunal remanded the case back to the antitrust regulator and directed it to give an opportunity to Grasim Industries to defend itself.

 

The competition regulator has differed from the findings of its director general regarding their directions for disclosure of discounting or pricing policy and sale to buyers who can trade the viscose staple fibre, said the appellate tribunal. The competition commission had omitted to give notice to Grasim Industries regarding the disagreement and has thereby deprived the company an opportunity to defend itself against the proposed actions, said the appellate tribunal. 

 

The case has its genesis in a complaint filed before the Competition Commission of India alleging that Grasim Industries was misusing its position in the domestic market to squeeze the textile industry consumers. The complainant had said that Grasim Industries was charging dissimilar prices from different customers in the domestic market and was following the same practice between domestic and foreign customers. Grasim Industries was selling viscose staple fibre at lower rates to its international customers, whereas, it was selling the same product at much higher prices to its domestic customers, the complainant said.

 

In 2020, the competition regulator held that Grasim Industries was charging discriminatory prices to its customers besides imposing supplementary obligations upon them in violation of the Competition Act, 2002. The competition commission had directed Grasim Industries to cease and desist from indulging in such practices which have been found to be in contravention of the provisions of the 2002 Act. Grasim Industries was directed to refrain from adopting unfair or discriminatory pricing practices and also refrain from seeking the consumption details of viscose staple fibre from the buyers, said the regulator.

 

In addition, the antitrust regulator had asked Grasim Industries to put in place a discount policy that was transparent and non-discriminatory to all market participants, and to make it easily and publically accessible or available. Grasim Industries should not place any end-use restriction on the buyers of viscose staple fibre and it would be open to them to use the same for spinning or trading or any other purpose, as permissible under law, the regulator said.

 

Challenging the competition regulator's order, Grasim Industries had moved the appellate tribunal. The order of the competition commission which directed to make policy easily and publicly accessible or available was a direction against the finding of its director general, wherein it was held that not disclosing pricing or discounting policy was not a contravention of the 2002 Act. While the director general has held that the company was under no obligation to keep the traders in business, the competition regulator had directed the petitioner not to place any end-use restriction on the buyers of viscose staple fibre, said Grasim Industries.

 

On Tuesday, shares of Grasim Industries Ltd. ended 0.5% higher at INR 2,871.50 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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