CCI wants to safeguard home buyers: Imposes a fine of Rs 630 Crore 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 (Compat) order which was issued in May.
In 2011, the CCI had found DLF violating fair trade norms and imposed the said penalty on a complaint filed by the owners’ association of a DLF project, the Belaire Owners’ Association, in Gurgaon. The association had alleged that DLF had adopted unfair business practices and had imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments. The association is worried that this will have serious adverse effects and ramifications on the rights of the buyers.
Dismissing DLF’s plea against the fine imposed by the Competition Commission of India (CCI), the tribunal had given the company 60 days to pay the penalty or approach the Supreme Court. DLF had then said that it would move to the Supreme Court on the matter.
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 strong builder with a solid market presence. Delay in handing over the projects has become a regular norm and the buyer has to bear the burden of rent as well as the EMIs.
Source- The Hindu Business Line
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