DLF again under competition watchdog's lens
CCI investigates alleged misuse of dominant market position by drafting one-sided agreement
Mar 08, 2014
Source : Business Standard

 

MUMBAI: Real estate major DLF is once again being investigated by the Competition Commission of India (CCI) for allegedly misusing its dominant position in the market by drafting a one-sided agreement with the buyers of flats in its New Town Heights project in Gurgaon.

The competition watchdog, which recently received the complaint against DLF, was planning to refer the case for further investigation by its director-general (investigation), official sources said.

“The complainant has raised concerns about the agreement, saying it is one-sided and the charges are similar to the previous case involving DLF, where we had imposed a fine for abuse of dominance. This case will also be sent for investigation soon,” a senior official in the know of developments told Business Standard.

A DLF spokesperson refused to comment because the matter was sub judice.

In August 2011, CCI had imposed a penalty of Rs 630 crore on DLF on allegations by the flat owners’ association of The Belaire, a housing complex in Gurgaon, that the real estate company had delayed the project and had built more floors than originally committed.

The flat owners’ association had in May 2010 alleged that DLF promised to complete the project in 2009 but buyers had yet to get possession. Besides, the realtor “imposed highly arbitrary, unfair and unreasonable conditions on the apartment allottees of The Belaire, which had serious adverse effects and ramifications on the rights of the allottees”. It also alleged that DLF had announced the project before getting necessary conditions and clearances.

The company appealed against the CCI penalty order in the competition appellate tribunal, which stayed the CCI order against an undertaking that DLF would deposit the entire fine with nine per cent interest if it lost the case.

While imposing the penalty on DLF, CCI had said: “Another feature of this far-from-healthy relationship between the service provider and its clients is the draconian and one-sided clauses in the buyers’ agreement. There are clauses that give DLF sole discretion in respect of change of zoning plans, usage patterns, carpet area, alteration of structure, etc.”

In January 2013, CCI passed another order amending the buyers’ agreement of DLF’s Belaire project and extended the modifications to the company’s Park Place and Magnolia projects through two separate orders. According to the CCI order, the apartment buyers’ agreement was amended to remove the “abusive and unfair conditions present in the original one-sided agreement”. Again in July 2013, CCI directed DLF to “cease and desist” from indulging in anti-competitive practices with regard to flats sold in its Belaire project.

According to the senior official, DLF may face a penalty again because the provisions invoked by the single complainant, Ashutosh Bharadwaj, an apartment buyer in the New Town Heights project, are similar to the ones in the Belaire case. “There is prima facie evidence of contravention,” the official said.

Latest Realty News

Devesh Kapur and Arvind Subramanian: A property tax proposal
Mar 08, 2014
DELHI: In our last piece, we had argued that taxation is the economic glue that binds citizens to the state in a necessary two-way relationship ("Taxation's fatal neglect?", January 20). A citizen's stake in exercising accountability diminishes if he does not pay in a visible and direct way - typically via direct taxes or user fees - for the services the state provides. We estimated that a very small percentage of Indians (about 10 per cent) are in this taxpayer accountability relationship with
Prestige Estates slips on profit booking
Mar 08, 2014
DELHI: Prestige Estates Projects fell 2.60% to Rs 159.10 at 10:40 IST on BSE on profit booking after the stock surged 23.66% in the preceding four trading sessions to Rs 163.35 on 6 March 2014, from a recent low of Rs 132.10 on 28 February 2014.
Bank licences on course despite polls
Mar 07, 2014
DELHI: Finance Minister P Chidambaram on Wednesday clarified the Reserve Bank of India (RBI) was likely to issue a few bank licences during the remaining term of the incumbent United Progressive Alliance (UPA) government, notwithstanding the model code of conduct that kicked in with announcement of the election schedule.
NPAs rise as slowdown persists
Mar 07, 2014
DELHI: The economic slowdown seems to have helped push the gross non-performing assets (NPAs), or doubtful loans, of public sector banks (PSBs) to 5.17 per cent of their advances by end-December 2013, against 4.18 per cent a year before.
Bad loans expected to be higher this fiscal: FM
Mar 07, 2014
DELHI: Finance Minister P. Chidambaram Wednesday said the Non-Performing Assets (NPAs) or bad loans of the public sector banks are expected to be higher this fiscal, which is a matter of big concern.
Onus on government to protect, boost real estate
Mar 07, 2014
DELHI: Presently, the real estate sector in India is facing several challenges. These include lack of adequate sources of finance, shortage of labour, steep rise in the prices of raw material, multiple tax system and lengthy and delayed procedures for approvals.
Tata Value Home’s National Home Buying Day oversubscribed four times
Mar 07, 2014
DELHI: Tata Value Homes Limited, a 100 per cent subsidiary of Tata Housing Development Company, India’s fastest growing real estate company’s maiden National Home Buying Day was oversubscribed 4 times with over 800 applications for the allocated 200 units across 5 projects.Impressively, Tata Value homes received over 200 applications on the first day of National Home Buying Day with 3, 00,000 hits on the website during the four days.
NCR: Industrial townships along NH-8
Mar 07, 2014
DELHI: Dharuhera comes with freehold property rights, as it is a part of Haryana. The town is surrounded by multinational industrial townships like Manesar, Bawal, Rewari, Chaupanki, Neemrana, Khushkhera, etc.
Greater Noida West can cope with housing demand
Mar 07, 2014
DELHI: Greater Noida West has a huge potential as in the next five years, this developing area will be in a position to deliver nearly 5 lakh housing units, catering to a population of nearly 10 lakh people.
Fancy things that your real estate agent might tell you
Mar 07, 2014
DELHI: When investing in a real estate property, a real estate agent might prove to be a really valuable asset. However, if you don't keep your eyes and ears open, you might end up ruining your investment. Ankit is a regular investor in the real estate industry and has been buying properties for some time now.

Latest Realty News Of State

Realty Talk's