CCI moves SC against NCLAT order quashing penalty on Grasim

India's antitrust regulator has moved the Supreme Court against the National Company Law Appellate Tribunal's May order that set aside the watchdog's ₹300-crore penalty imposed on Grasim Industries for abusing its dominant position in the market for viscose staple fibre, a key ingredient in the textiles value chain.

The Competition Commission of India (CCI) imposed the penalty in 2020 when it claimed Grasim had misused its dominant position in the domestic market to squeeze textile industry consumers by charging different prices to different buyers and imposing conditions on customers. While asking Grasim to cease and desist from indulging in unfair or discriminatory pricing practices, CCI also directed the company to make its discount policy public and allow buyers to use or trade the fibre freely.

However, the appellate tribunal had remanded the case back to the CCI and directed it to give an opportunity to Grasim to defend itself. The tribunal observed that the CCI did not provide a chance to Grasim to present its arguments, after it differed from the findings of the Director General, its probe Unit.


The complaint against the Aditya Birla Group companies-Association of Man Made Fibre Industry of India, Grasim Industries, Thai Rayon, and Indo Bharat Rayon-had also alleged that Grasim was selling viscose staple fibre at lower rates to its international customers, while selling the same product at much higher prices to its domestic customers.

Challenging the competition regulator's order, Grasim had moved the NCLAT stating that the CCI's order was a direction against the finding of its director general.