The top court dismissed the CCI's appeal and ordered a fresh hearing, saying the company was denied a chance to defend itself when the regulator disagreed with its own probe unit.
Alpha Score of 37 reflects weak overall profile with poor momentum, weak value, poor quality, moderate sentiment.
The Supreme Court on Friday upheld an NCLAT order that set aside a ₹301.6 crore penalty the Competition Commission of India had imposed on Grasim Industries. The court dismissed the CCI's appeal and directed the regulator to hear the Aditya Birla Group company again over allegations of dominance in the viscose staple fibre market.
A bench of Justices J B Pardiwala and K Vinod Chandran refused to interfere with the May 5 NCLAT order. The tribunal had found that the CCI did not give Grasim a chance to argue its case after the regulator differed from the findings of its own Director General, the probe unit.
The CCI imposed the penalty in March 2020, accusing Grasim of abusing a dominant position in VSF supply to spinners in India. The watchdog said the company charged discriminatory prices and imposed supplementary obligations on buyers. It ordered Grasim to stop unfair pricing practices and to publish a transparent discount policy.
Grasim challenged the order at the NCLAT, which acts as an appellate authority over the CCI. The tribunal said that when the CCI disagrees with the DG's findings, it must give the opposite party a hearing. The NCLAT ruled that the CCI "had omitted to give notice" to Grasim and thereby "deprived" the firm of "an opportunity to defend itself."
The tribunal sent the case back to the CCI with a direction to hear Grasim on any points where the regulator departs from the DG's conclusions. It made clear it had "not commented on the merits of the case" and told the CCI not to be influenced by its judgment.
The original complaint was filed against the Association of Man Made Fibre Industry of India, Grasim Industries, Thai Rayon, and Indo Bharat Rayon – all part of the Aditya Birla Group.
VSF is a biodegradable cellulosic fiber used in apparel, home textiles, and hygiene products, often blended with cotton or polyester.
The CCI stock page lists an Alpha Score of 31/100, labelled Weak, in the Real Estate sector.
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