MUMBAI: In a relief to Grasim Industries, the National Company Law Appellate Tribunal (NCLAT) on Tuesday set aside the ₹301.61 crore penalty imposed by the Competition Commission of India (CCI), saying the company was not given an adequate opportunity to defend itself.
The penalty was originally imposed in 2020, when the CCI held 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. It had also directed the company to make its discount policy public and allow buyers to freely use or trade the fibre.
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.
An investigation by the Director General (DG) had flagged issues such as pricing differences and certain conditions imposed on buyers, but also noted that the discounting and pricing policy, by itself, did not violate the law. “The DG has held that the discount/pricing policy is discriminatory but has clearly held that non-disclosure is not in violation of the provisions,” according to the judgement copy.
, however, 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.
The tribunal clarified it had not commented on the merits of the case and asked the regulator to decide the matter independently. “We make it clear that we have not commented on the merits of the case and the (CCI) should not be influenced by anything contained in this judgement,” the order read.
Emailed queries sent to Grasim earlier today went unanswered till press time.
CCI will now hear the matter again and revisit its findings after giving Grasim an opportunity to respond to points where it disagrees with the investigation report.
Grasim Industries Ltd is part of the , with operations spanning cellulosic fibres, chemicals, and .