CCI to take action against Errant builders
Unitech, Oberoi Realty, BPTP Ltd, Gaursons India, K Raheja Corp, Amrapali Group, Supertech Ltd, Tata Housing Development Company, Ansal Properties & Infrastructure, Purvankara Projects, Prestige Estates Projects, Avalon Group, Aparna Construction and Estate, Amit Enterprises Housing, Omaxe, Parsvnath Developers, PS Groups Salarpuria Group, Purohit Construction and Ambuja Neotia Group have come under the radar of the Competition Commission of India (CCI).
The CCI has asked 20 leading builders including the ones mentioned above to respond to the findings by its investigation arm that they engaged in unfair trade practices. These unfair trade practices include one-sided contracts with inadequate disclosure, non-disclosure of applicable laws, rules and regulations with respect to the projects being developed, restricting the rights of apartment allottees etc.
In a report prepared after the investigation, the anti-monopoly watchdog has found that these builders did not disclose crucial information about the built-up area and often reserved the right to increase or decrease apartment sizes.
The builders were unfair as they charged high interest from apartment owners for payments after due dates but paid significantly lower rates if they delayed construction of the project. The builders also retained the right to allot, sell or transfer any interest in the common areas and facilities at their discretion.
CCI has sought responses from these 20 leading builders between September 22 and 26. The Confederation of Real Estate Developers’ Associations of India (CREDAI) lobby group has also been asked to comment.
Source- The Economic Times
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
