DELHI: The Competition Commission of India (CCI) will soon probe if Delhi Development Authority (DDA) has been abusing its dominant position in the residential market.
CCI will be acting on a complaint by Satynarayan Rao, who had alleged that DDA’s agreements were heavily loaded in its favour. Rao sought a probe by CCI. Following investigation, the Commission has asked for a Director General Investigation who will investigate if there is abuse of dominance. The matter will be probed under Section 4 of the Competition Act.
Earlier this year, CCI had asked realty major DLF to modify its builder-buyer contract. The CCI order tips property buying in the opposite way, from the current situation that is heavily tilted in favour of the developers to a more egalitarian relationship between a buyer and builder, thus driving home the point that a company by virtue of its size and power cannot annul the basic rights of a seemingly ‘powerless’ single home buyer.
At the moment, any builder-buyer agreement is governed by State Group Housing -development laws that govern things such as floor area ratio, maximum onsite coverage, plot sizes, provision of parking space, manner of structural alterations, among others.