NCLAT sets aside Rs.301.61 Crore Penalty Against Grasim for Unfair Conduct
NCLAT sets aside Rs.301.61 Crore Penalty Against Grasim for Unfair Conduct
Brief details of litigation
In 2020, the Competition Commission of India (CCI) imposed a penalty of Rs.301.61 crore on Grasim Industries for alleged unfair practices in its Viscose Staple Fibre business.
The company informed the stock exchanges about this development through a letter dated 16 March 2020. However, Grasim did not create any provision in its books of accounts regarding this penalty. Subsequently, the company challenged the order before the National Company Law Appellate Tribunal (NCLAT).
Denial of Fair Hearing under UPGST Act: High Court Sets Aside Order Due to Insufficient Notice
Change in the status of proceedings
On 5 May 2026, NCLAT Set-aside the old CCI order. The case has been sent back to CCI for a fresh hearing.
The penalty is not enforceable for now, and the matter will be reconsidered after Grasim has had a proper chance to present its case.