DLF might pay a penalty of Rs. 630 Crore
The Competition Commission of India (CCI) had levied a penalty on DLF on August 12, 2011. 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.
The Supreme Court on Thursday continued its July order and barred the CCI from taking any “coercive steps” on the plea of realty major DLF. DLF had requested a reduction in the Rs 630 crore penalty. This penalty was imposed for abusing its dominant market position with regard to a residential society in Gurgaon.
A bench headed by justice Ranjana Desai continued its July 18 order till next date of hearing on August 27. DLF challenged the Competition Appellate Tribunal’s May order that confirmed the penalty of R630 crore imposed by the CCI.
DLF stated that the tribunal failed to consider the market share of state agencies like DDA (Delhi Development Authority) and Haryana Urban Development Authority (HUDA)while determining the alleged market dominance.
A bench of justices Ranjana Prakash Desai and N V Ramana also sought responses from HUDA and the resident’s association on whose plea the competition watchdog CCI had imposed the penalty on the company.It was in May 2010 that the buyer’s association had complained against DLF.
Source- The Financial Express
CCI, Competition Commission of India, DDA, Delhi Development Authority, Haryana Urban Development Authority, HUDA, residential society in Gurgaon
