CCI is harsh on dominant real estate players: Imposes penalty on DLF
A penalty of Rs 630 crore was imposed by the Competition Commission of India (CCI), holding the prestigious realty major DLF guilty of abusing its dominant market position with regard to a residential society in Gurgaon. DLF on Thursday moved to the Supreme Court against the Competition Appellate Tribunal’s order which was issued in May.
In the last few years the developer was surrounded with such orders. The CCI had levied the penalty on DLF on August 12, 2011, for abuse of its dominant position, which involved selling of flats.In another case, which also related to unfair conditions imposed on buyers, it had asked DLF to ‘cease and desist’ but did not levy any penalty.
CCI’s order is looked as a positive move in the direction of safeguarding the interests of the home buyers and stopping the exploitation by a mighty builder. The order of CCI as well as this judgment is expected to go a long way to improve the appalling plight of the customers in the present day who face a lot of issues from the builders. The builders quote rampant prices claiming amenities and other luxury items, and then do not provide the customers with those amenities. Delay in handing over the projects has become a regular norm and the buyer has to bear the burden of rent and EMIs.
The 139-page Compat order stated that as a dominant player, DLF has a special duty to be within the four corners of the law.
Source- The Financial Express
Competition Commission of India, Competition Commission of India (CCI), complaint against DLF Ltd, Penalty on DLF, Rs 630 crore penalty on DLF
