Commission imposes Rs 630 crore fine on DLF
17 Aug 2011
In one of the largest-ever penalty imposed by the Competition Commission of India (CCI), India's free trade regulator, has imposed a Rs630-crore fine on DLF for misusing its dominant position in the real estate market.
DLF, India's largest real estate developer, was penalised for misusing its dominant position by drafting one-sided agreements with flat buyers. The case relates to Belaire housing complex at Gurgaon, CCI said in the order posted on its website.
"DLF should cease and desist from formulating and imposing unfair conditions in its agreements with buyers in Gurgaon. It should modify unfair conditions imposed within 3 months of the date of receipt of the order," the anti-competitive activities watchdog said in its 237-page order.
Company officials said they may move CAT against the order.
The penalty on DLF is the largest-ever imposed on any company by CCI. Earlier, the commission had asked National Stock Exchange to pay a penalty of over Rs500 crore.
DLF has the option to appeal against the order in the Competition Appellate Tribunal (CAT).
Belaire flat owners had complained of inordinate delay by DLF in the completion of the project and also alleged that the developer inserted contract clauses that were "arbitrary, unfair and unreasonable".
