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Informist, Friday, Jul. 31, 2026

 

--SC upholds NCLAT order to set aside CCI's INR-3-bln fine against Grasim Ind 

 

NEW DELHI – The Supreme Court Friday upheld the National Company Law Appellate Tribunal's May order that had set aside the Competition Commission of India's INR-3.02-billion penalty against Grasim Industries Ltd. for abusing its dominant position in the market for viscose staple fibre. A bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran rejected the competition regulator's challenge against the appellate tribunal order to remand the case back to CCI and to give an opportunity to Grasim Industries to defend itself.  

 

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 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 were 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 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 moved the appellate tribunal. The order of the competition commission that directed to make the policy easily and publicly accessible 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 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.

 

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

 

At 1207 IST, shares of Grasim Industries were up 0.4% at INR 3,116.60 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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