Mumbai, July 2 -- The move came following a complaint by Grasim Industries, which has recently entered the sector under its Birla Opus Paints brand.

According to the CCI's order dated July 1, Grasim alleged that Asian Paints was using restrictive trade practices to stifle competition. The complaint claimed that the company was discouraging distributors from selling Birla Opus products by offering incentives such as foreign travel and discounts in exchange for exclusivity. These benefits, it was alleged, were not based on any uniform dealer policy or performance metrics.

Grasim further stated that dealers who chose to stock Birla Paints faced several forms of retaliation. These included reduced credit limits, increased sales targets, wit...