To reproduce: please refer to the attached gif file and sample project.

Workaround: when you set the DrawFill property to true, specify the BackColor to the desired one and reset for the rest of the cells.

private void radGridView1_CellFormatting(object sender, Telerik.WinControls.UI.CellFormattingEventArgs e)
{
    if (e.Column.Name == "ProductName" && e.Row is GridViewDataRowInfo)
    {
        if (e.CellElement.Value.ToString().Contains("C"))
        {
            e.CellElement.DrawFill = true;
            e.CellElement.BackColor = Color.Yellow;
            e.CellElement.GradientStyle = GradientStyles.Solid;
            e.CellElement.ForeColor = Color.OliveDrab;
        }
        else
        { 
            e.CellElement.ResetValue(LightVisualElement.DrawFillProperty, ValueResetFlags.Local);
            e.CellElement.ResetValue(LightVisualElement.GradientStyleProperty, ValueResetFlags.Local);
            e.CellElement.ResetValue(LightVisualElement.ForeColorProperty, ValueResetFlags.Local);  
            e.CellElement.ResetValue(LightVisualElement.BackColorProperty, ValueResetFlags.Local);  
        }
    }
    else
    { 
        e.CellElement.ResetValue(LightVisualElement.DrawFillProperty, ValueResetFlags.Local);
        e.CellElement.ResetValue(LightVisualElement.GradientStyleProperty, ValueResetFlags.Local);
        e.CellElement.ResetValue(LightVisualElement.ForeColorProperty, ValueResetFlags.Local);    
        e.CellElement.ResetValue(LightVisualElement.BackColorProperty, ValueResetFlags.Local);  
    }
}