Penalty of Rs 630 crores on DLF: Com­pat up­holds CCI or­der

Consumer Voice - - In The News -

In Au­gust 2011, the Com­pe­ti­tion Com­mis­sion of In­dia (CCI) found real es­tate com­pany DLF vi­o­lat­ing fair trade norms to the detri­ment of their al­lot­tees and im­posed a fine of Rs 630 crores on a com­plaint by Belaire Own­ers As­so­ci­a­tion, Gur­gaon. The as­so­ci­a­tion al­leged that DLF had im­posed highly ar­bi­trary, un­fair and un­rea­son­able con­di­tions on al­lot­tees of apart­ments in the com­plex.

DLF then filed an ap­peal be­fore the Com­pe­ti­tion Ap­pel­late Tri­bunal (Com­pat). The tri­bunal has now up­held the or­der of the CCI. The penalty of Rs 630 crores is equiv­a­lent to seven per cent of DLF turnover. The tri­bunal has given 60 days to DLF for chal­leng­ing the or­der be­fore Supreme Court. In 2011, CCI had passed the or­der af­ter its in­quiries into com­plaints filed by flat buy­ers’ as­so­ci­a­tions of two DLF projects in Gur­gaon – DLF Park Palace and The Belaire – and find­ing DLF abus­ing its dom­i­nant po­si­tion.

Builder’s high hand­ed­ness to­wards al­lot­tees is well known. Re­cently realty ma­jor Parsv­nath De­vel­op­ers was asked to re­turn the en­tire prin­ci­pal amount paid by two flat buy­ers, with 18 per cent in­ter­est, and an­other Rs 7 lakh com­pen­sa­tion to each for caus­ing men­tal agony and ha­rass­ment be­cause of de­lay in hand­ing over pos­ses­sion.

Keep­ing in view the ex­pand­ing real es­tate in­dus­try and the plight of al­lot­tees, the Real Es­tate (Reg­u­la­tion and De­vel­op­ment Bill 2013) was fi­nal­ized for pas­sage by the par­lia­ment. The pend­ing bill now needs to be passed by the new par­lia­ment.

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