Competition regulator once again finds DLF guilty of anti-trust rules
31 Aug 2011
The Competition Commission of India (CCI) has passed another order against DLF Ltd for misusing its dominant position to the disadvantage of its customers, even though India's free trade regulator did not impose any penalty on the country's largest real estate developer.
The second order, within a span of a fortnight, CCI has passed an order for misusing its dominant position in the property of Park Place in Gurgaon and thereby breaching Section 4 of the Competition Act. Earlier during the month, CCI slapped a Rs 630 crore fine on DLF. (See: Commission imposes Rs 630 crore fine on DLF)
The Commission's verdict follows complaints from residents of DLF Park Place, an apartment complex in Gurgaon on the outskirts of Delhi. The residents had complained that the developer constructed 1,560 apartments against the earlier promised 950.
This reduced the area and facilities originally promised to the buyers and delayed the project, leading to financial losses to the allottees, the regulator said in the order.
The order would result in further troubles for the company. Earlier this month, CCI had imposed a penalty of Rs630 crore on the developer for abusing its market position in a similar complaint filed by the Belaire Owner's Association, representing the buyers of apartments in another DLF project in Gurgaon.
In a stock exchange filing, DLF said it would appeal against the two orders passed by the regulator. "The company continues to believe that it has a strong case," it said.
