To seek penalty exemption of Rs. 580 crore, DLF resorts to SC
DLF is trying to take help from Supreme Court trying to seek exemption by paying the amount of Rs. 580 crore to avoid the imposed penalty.
This penalty had been charged by CCI when the real estate company DLF had abused its prevailing market position regarding to a residential complex in Gurgaon. To avoid this penalty, DLF wants to offer a land of Rs. 580 in terms of security balance amount. In August, while the Supreme Court admitted DLF’s appeal, it refused to be in the competition appellate tribunal’s order on 19th May. This further confirmed the penalty of Rs. 630 crore imposed by watchdog, CCI.
A temporary order of Supreme Court compelled DLF to deposit an amount of Rs. 50 crore of the Rs. 630 Crore within the first three weeks and the remaining Rs. 580 Crore within three months of Registry. This in turn would be an investment in the national bank. DLF was also asked to provide a fresh undertaking within three weeks, regarding the dismissal of the appeal. The firm shall collect interest at a rate of 9% as directed by Supreme Court.
DLF had to pay the entire penalty by November 25. The company has only deposited Rs. 50 crore by now but now has thought of an exemption in terms of deposition of the balance amount. Looking for waiver of compulsion to make payment for the balance amount, DLF mentioned that it will provide them with a land area of equal amount, as security.
The order from Sebi has crippled the ability of DLF to some extent, specially the financial requirement services as DLF is barred from rights to the securities market. DLF even said that it is quite not possible to continue the proceedings via unbiased debentures. Due to lack of funds, the applicant is left with no choice but seek help from the mutual funds that was granted by SAT when the requirement were considered of the applicant.
Then it was decided to serve the repayment of principle and loan amount that was availed by different financial or NBFCs banks.
Source:
Financial Express
CCI, DLF, DLF resorts, residential complex in Gurgaon, SEBI, Supreme Court
