DLF in fresh regulatory trouble as CCI to probe Gurgaon project
25 Jun 2014
The Competition Commission of India (CCI) on Tuesday ordered a probe against an arm of realty major DLF for allegedly imposing unfair and unreasonable conditions on office buyers at office block projects in Gurgaon.
Some other group entities of the real estate major are already under probe by the CCI with regard to various other cases of anti-competitive practices.
The CCI had also imposed a fine of Rs630 crore against DLF for abuse of its dominant market position in a residential real estate case, but the company has challenged the order.
The latest probe would be carried out against DLF Universal, upon a complaint that alleged the realty company of imposing certain anti-competitive clauses in the 'Commercial Office Space Buyers Agreements'.
The case pertains to the DLF's commercial office space in Corporate Greens project at Sector 74A of Gurgaon. The CCI has asked its director general to initiate an investigation against DLF Universal.
After looking into the complaint, CCI said in a 11-page order that it is ''of the prima facie opinion that despite the presence of other developer in commercial real estate space in Gurgaon, such as Emmar MGF Land Ltd, Unitech, Spaze Towers Pvt Ltd, Vatika Ltd, Bestech Indian Pvt Ltd, JMD Ltd, and DLF Group appears to be dominant in the relevant market''.