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Corporate Update

NCLAT Sets Aside ₹3,016 Crore Penalty On Grasim, Orders Fresh CCI Review

• By  Textile Excellence
• May 07, 2026

Grasim Industries Limited received major legal relief after the National Company Law Appellate Tribunal set aside the Competition Commission of India’s ₹3,016 crore penalty linked to alleged anti-competitive practices in the man-made fibre sector. The tribunal directed the CCI to conduct a fresh hearing and reexamine the matter.

The case relates to allegations surrounding pricing and supply practices in the viscose staple fibre market, where Grasim remains India’s largest producer. Industry analysts believe the ruling could significantly impact the regulatory framework governing India’s growing MMF and technical textile segments.

India’s man-made fibre industry contributes nearly 70% of global textile consumption trends, while domestic MMF demand is projected to cross US$30 billion by 2030. The tribunal observed procedural concerns in the earlier order, prompting a reassessment of evidence and market analysis. The development arrives at a critical phase when India is aggressively promoting MMF exports under the PLI scheme and PM MITRA initiatives.

The case relates to allegations surrounding pricing and supply practices in the viscose staple fibre market, where Grasim remains India’s largest producer. Industry analysts believe the ruling could significantly impact the regulatory framework governing India’s growing MMF and technical textile segments.