CCI may fines DDA
After imposing a heavy fine of Rs 1,773 crore on state-owned Coal India Ltd, CCI is now planning to impose fine on DDA. According to a current report by the competition watchdog’s director-general (investigation), it is found that DDA is exploiting its dominant market value through its housing sale practice.
A senior official says that we have received a complaint from a person who was allotted a DDA flat Vasant Kunj (South Delhi). As there are evidences against DDA, we are recommended a detailed investigation by the DG. The final investigation report was recently presented to the commission and evidence for misuse of dominance was found.
A DDA spokesperson says that this is the first enquiry against DDA and they have no communication about the investigation report. As per the DDA official the commission is likely to conduct a hearing soon on this case.
Last year in September, the competition watchdog has started the enquiry against DDA on the basis of complaint registered by Satya Narayan Rao blaming that DDA breaks several rules of the Competition Act. Mr. Rao blamed the neglecting the section 4 of the Competition Act by DDA. The section is related to misuse of dominant position, directly or indirectly, by imposition of unfair or discriminatory conditions in purchase or sale of goods or services, as also by predatory pricing.
The complainant blames that he had applied for a DDA Housing Scheme in December 2010 by paying Rs 1.5 lakh. After that, he was allotted a flat in Vasant Kunj and he paid Rs 91.28 lakh to DDA. According to DDA, all flats are ready to occupy but the reality is different, complainant said. According to CCI, DDA received complete payment from allottees but the flats were nowhere close to ready to shift.
The commission will give final verdict after going through the investigation report and hearing other involved parties. The amount of fine will also be decided on the basis of facts and the dispute between the involve parties. DDA was established by legislation 1957 and is the prime operating agency for the development of Delhi.
In August 2011, CCI had imposed a penalty of Rs 630 crore on DLF in some other case related to real estate sector on allegations by the flat owners’ association of The Belaire, a housing complex in Gurgaon. The charge is that the organization delayed the project and constructed more floors. There are some other complaints against DLF as well.
Source: The Business Standard
Belaire, CCI, Competition Commission of India, Competition watchdog, DDA, dda housing scheme, Delhi Development Authority, DLF, Gurgaon, Legislation 1957, Real Estate Sector, Satya Narayan Rao, South Delhi, Vasant Kunj
