National Company Law Appellate Tribunal Sets Aside ₹301.61 Crore Penalty on Grasim, Orders Fresh Proceedings

NCLAT Sets Aside ₹301.61 Crore Penalty on Grasim Industries

In a significant development for Grasim Industries, the National Company Law Appellate Tribunal (NCLAT) has set aside the ₹301.61 crore penalty imposed by the Competition Commission of India (CCI) in 2020. The penalty was a result of the CCI's finding that Grasim had abused its dominant position in the viscose staple fibre (VSF) market by charging different prices to different buyers and imposing conditions on customers.

According to the order, the tribunal, led by Justice Yogesh Khanna, remanded the matter to the CCI, directing it to grant Grasim a hearing if it intends to rely on findings adverse to the company. The tribunal clarified that it had not commented on the merits of the case and asked the regulator to decide the matter independently.

The Competition Commission of India had directed Grasim to adopt a transparent and non-discriminatory discount policy, publicly disclose its pricing, and remove restrictions on how buyers could use or trade the fibre. However, the CCI's order was based on an investigation by the Director General (DG) that had flagged issues such as pricing differences and certain conditions imposed on buyers.

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Grasim Industries Ltd is part of the Aditya Birla Group, with operations spanning cellulosic fibres, chemicals, and textiles. The company had not responded to emailed queries sent earlier today.

The matter will now be heard again by the CCI, which will revisit its findings after giving Grasim an opportunity to respond to points where it disagrees with the investigation report.