**Asian Paints Challenges CCI Investigation Order in High Court**
Asian Paints has approached the Bombay High Court to annul the Competition Commission of India’s (CCI) order from July 1, which mandated an investigation into the company’s alleged anti-competitive practices. Senior counsel Darius Khambata, representing Asian Paints, contended that the order was issued without adequate consideration or “any application of mind.” He noted that the company faces similar investigations each time a new competitor enters the market.
The court, presided over by Justices Revati Mohite Dere and Neela Kedar Gokhale, is reviewing a writ petition from Asian Paints aimed at quashing the CCI’s directive. The next hearing is scheduled for August 7, when the CCI will present its concluding arguments.
On July 1, the CCI instructed its director general to initiate an investigation into Asian Paints following allegations from Birla Opus, a new decorative paints division of the Aditya Birla Group. In a filing on July 3, Asian Paints indicated it was assessing the order and would pursue appropriate legal action.
Khambata expressed concerns about the frequency of such investigations, stating, “Every time a new entrant comes, I have to face a similar investigation. Search and seizure for hours. Extremely wide path.” He emphasized that previous complaints had been dismissed promptly and argued that the current situation represented a breach of “fairness and natural justice.”
Grasim Industries, which operates Birla Opus, has accused Asian Paints of employing anti-competitive strategies to obstruct its market entry and growth in the Indian decorative paints sector. Allegations include pressuring dealers to avoid stocking Birla Opus products by threatening to withdraw credit and incentives, as well as coercing trade partners to return tinting machines supplied by Grasim and hindering access to essential supply-chain services.
In response to these allegations, the CCI issued a revised investigation order under Section 26(1) of the Competition Act, directing the director general to complete the investigation within 90 days. The regulator stated that sufficient preliminary evidence warranted the investigation without prior hearings for Asian Paints, clarifying that this directive should not be interpreted as a final ruling.
A similar complaint was previously filed by JSW Paints when it entered the decorative paints market in 2020, alleging that Asian Paints abused its market dominance. JSW claimed that Asian Paints reduced credit limits and downgraded the status of dealers who began working with them. However, after a two-year investigation, the CCI found no evidence of wrongdoing by Asian Paints.
**FAQ**
**What is the current legal situation for Asian Paints regarding the CCI investigation?**
Asian Paints has filed a petition in the Bombay High Court to challenge the CCI’s order for an investigation into alleged anti-competitive practices, claiming the order was issued without proper consideration. The court will hear the case next on August 7.
