CCI penalised DLF for Rs. 630 crore
The BJP’s election manifesto always shouted loud and clear ‘’ Ache din aane wale hain’’. Post-election and the swearing in of the new government, the nation is still dancing to that tune. The residents of three DLF projects—Belaire, Park Place and Magnolias now can breathe a sigh of relief with the good news as Competition Appellate Tribunal (COMPAT) has defended an earlier decision of the Competition Commission of India (CCI) penalising DLF to the tune of Rs 630 crore.
DLF was charged for abusing its dominant position in the real estate market of Gurgaon. The Competition Act, 2002, prohibits companies with superlative market power and superior financial position from exploiting the consumers.
The joint complaint of the residents of Belaire, Park Place and Magnolias against DLF was that the real estate major was using its dominant position in the market and was imposing arbitrary, unfair and unreasonable conditions on the new apartment buyers.
CCI and COMPAT’s decision against DLF is in consonance of the age-old maxim of contra proferentem (against the offeror). DLF was charged of many irregularities including change of unequal interest rates on default, and costly exit option for the allottees. Also the residents complained that the allottees were required to pay a substantial amount upfront even before signing the agreement. The areas and facilities originally showcased in the brochures for the apartment allottees were substantially reduced. Besides, the projects were also abnormally delayed, resulting in financial losses to several apartment allottees.
Source- The Financial Express
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