In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) has annulled the ₹301.61 crore penalty imposed on Grasim Industries Ltd by the Competition Commission of India (CCI). The penalty, originally levied in 2020, was based on allegations that Grasim abused its dominant position in the viscose staple fibre (VSF) market by implementing discriminatory pricing and imposing conditions on customers. The NCLAT found that Grasim was not afforded a fair opportunity to defend itself during the CCI's investigation. Justice Yogesh Khanna, leading the tribunal, emphasized the need for a fresh hearing, instructing the CCI to allow Grasim to respond to any adverse findings. Although the Director General's investigation highlighted pricing discrepancies, it concluded that the discounting policy itself did not violate legal provisions. The CCI had previously mandated Grasim to adopt a transparent discount policy and remove restrictions on how buyers could use the fibre. The NCLAT clarified that it did not comment on the case's merits, leaving the decision to the CCI, which must now re-evaluate its findings with Grasim's input.