Supreme Court refuses to hear Asian Paints’ plea against competition commission probe, allows firm to withdraw petition

New Delhi: In a setback for Asian Paints Ltd, the Supreme Court on Monday refused to entertain the company’s plea challenging an antitrust investigation launched by the Competition Commission of India (CCI) following a complaint by Grasim Industries’ decorative paints arm, Birla Opus.

A bench of Justice J.K. Maheshwari and Justice Vijay Bishnoi, after hearing the plea, stated that they were “not inclined to entertain this”, but allowed Asian Paints, India's largest paintmaker, to withdraw its petition at the company’s request.

The company had approached the apex court after the Bombay High Court, in September 2025, dismissed its petition and upheld the CCI’s decision to investigate alleged abuse of dominance in the decorative paints segment.

Asian Paints had argued that it faced repeated scrutiny whenever a new player entered the market and that the regulator’s actions were procedurally flawed.

During the Supreme Court hearing, senior counsel Mukul Rohatgi and Neeraj Kishan Kaul argued that Grasim Industries' complaint was substantially similar to a prior complaint filed by JSW Paints in 2022, which had been investigated and dismissed.

They contended that the company should not face repeated investigations for essentially the same claims. “The earlier complaint and this complaint are identical in their reasoning. My market reputation is at stake. Public perception is at stake. Damage is being done to me,” Kaul said.

Rohatgi highlighted the prolonged nature of such probes: “One pain fellow will come for two years. The investigation went on for two years. It's a very detailed investigation. It's not like a suit that happens in two years. Three years. It ends. Then in the fourth year, another chap will come. Another four years will go by. After this is over, another chap will come.”

The court, however, clarified that the JSW Paints case did not grant perpetual immunity. “This inquiry conducted on a complaint of JSW would not give you a certificate that you are fair and everything,” the court said.

The background

The legal tussle began in mid-2025, when Birla Opus, the paints division of Aditya Birla’s group, filed a complaint with the CCI alleging that Asian Paints pressured dealers not to stock Birla Opus products, offered preferential incentives to select dealers, and obstructed access to logistics and warehousing for competitors.

The CCI initiated an investigation into Asian Paints on 1 July 2025. Asian Paints, in a 3 July stock exchange filing, said it was reviewing the order and would take appropriate legal recourse.

Subsequently, Asian Paints approached the Bombay High Court. The company also contended that it was not given a hearing or a proper right to respond.

The Bombay High Court rejected the company’s plea, noting that preliminary inquiries under Section 26(1) of the Competition Act, 2002, are administrative and do not require a hearing. It said new facts or evidence can be investigated, and prior dismissal does not grant perpetual immunity. It further dismissed claims of procedural flaws, stating that the CCI had acted within its legal powers.

In response to a query, Asian Paints said it respects the judicial process and will cooperate with the regulatory proceedings.

"The appeal focused solely on the interpretation of law which came by way of amendment in 2023. In any case, the company will address the CCI investigation and appropriately respond to all queries," the paintmaker added.

Asian Paints also said that it remains committed to the highest standards of corporate governance and fair competition.

Asian Paints holds over 50% market share in India’s decorative paints segment, ahead of Berger Paints, Kansai Nerolac, JSW Paints, and Birla Opus. The paintmaker’s June-quarter profit fell by 6% to ₹1,099.77 crore.

Analysts at Elara Capital, in a 6 October research note, said demand for paints remained weak due to extended monsoons and heightened competitive intensity, projecting sales growth of around 1% for Asian Paints and 2% for Berger, with volume growth in the mid-single digits.

Since its launch in April 2024, Birla Opus has shaken up the paints market, and competition has heated up further after JSW Paints acquired Dutch paintmaker Akzo Nobel’s India business in June.

Shares of Asian Paints ended flat on Monday at ₹2,343 on the National Stock Exchange in an overall weak market.