Rs 2.4 crore penalty on DLF imposed by Competition Commission
DLF, realty major, has been slapped a penalty of Rs 2.4 crore by the Competition Commission for not complying with its directions to cease and desist from unfair trade practices.
Moreover, continued non-compliance would result in penalty of Rs 1 lakh every day, the fair trade watchdog said.
Competition Commission of India (CCI) has imposed a fine of Rs 2.4 crore, holding that DLF contravened its directions.
The complaint filed by Magnolia Flat Owners Association and one Rahul Kapoor regarding demand letters issued to them by DLF “under the garb of super area”, resulted in CCI order, dated March 26.
The complaint was filed against DLF Universal Ltd, Haryana Urban Development Authority and the Director Town and Country Planning, Haryana.
By issuing the impugned demand letters dated November 28, 2012, CCI, after looking into the matter, found that DLF had contravened its order, dated January 31, 2012. Besides, for non-compliance of the aforesaid order, the entity “failed to show any cause, much less any reasonable cause.”
“The order by the Commission for no stay on the cease and desist was operating when the non-compliance occurred. Till date the said demand letter has not been withdrawn,” the order said.
According to the watchdog, its order cannot be permitted to be opted out by the parties through negotiations and the same has to be obeyed by the concerned parties.
“The Commission deems it appropriate, considering the totality of the facts and circumstances of the case, to impose a fine of Rs 50,000 for each day of non-compliance upon the opposite party No 1 (DLF Universal) which period is to be reckoned from November 28, 2012 till today (the date of passing of this order) totalling to Rs 2, 41, 50, 000,” it said.
From the order date the penalty has to be paid within 60 days.
As per CCI, for each day of non-compliance DLF Universal will be saddled with a fine of Rs 1 lakh beyond the date of order or “till the time the total fine reaches to the maximum statutory limit of Rs 10 crore, whichever is earlier”.
Source: Economic Times
Competition Commission of India, Country Planning, DLF, DLF Universal Ltd, Haryana, Haryana Urban Development Authority, Magnolia Flat Owners Association, Penalty on DLF, Rahul Kapoor
