Delhi HC issues notices to CCI, CREDAI and 20 realty developers over cartelisation, matter to be heard on Jan 18
The Delhi High Court has issued notices to CCI, CREDAI and developers seeking response to this petition and the matter is scheduled to be heard on January 18.
Dec 30, 2015
Source : ET

 

MUMBAI: Realty developers' troubles regarding allegations of cartelisation have got murkier as the petitioner has now moved the Delhi High Court against competition watchdog Competition Commission of India (CCI) itself.

 The petition, along with CCI, has dragged builders' body Confederation of Real Estate Developers Association of India (CREDAI) and 20 prominent developers including Unitech, Tata Housing Development Co, BPTP, Oberoi Realty and Puravankara Projects, to the court. The petition is challenging the CCI's January order to close the case regarding allegation of cartelization among builders. 

The Delhi High Court has issued notices to CCI, CREDAI and developers seeking response to this petition and the matter is scheduled to be heard on January 18. 

Following a complaint last year, CCI's investigation arm had prepared a report with findings that builders were engaged in unfair trade practices such as one-sided contracts with inadequate disclosures. The petition had then also alleged that the major realty developers were not disclosing crucial information such as total common area calculation and proportionate share of the apartment being sold on a super built-up area basis. CCI had, in January, dismissed the matter through an order.

 "The case has been admitted in September this year. CCI had closed down the case on the grounds of insufficiency of evidence, whereas my contention is that evidence is not required due to presumption of law enshrined under section 3(3) of the Competition Act," said advocate Jyoti Swaroop Arora, who has challenged the anti-monopoly regulator's order. An email query to CCI and CREDAI remained unanswered until the time of going to press.

 Confirming the development, Delhi-based developer BPTP said, "The matter is sub-judice and it would not be appropriate for us to comment on the matter at this stage, though it is matter of record that we have succeeded before the Hon'ble Competition Commission of India." 

While according to Mumbai-based Tata Housing Development Company the petition has not been admitted yet. "CCI has disposed the complaint by giving a clean chit to Tata Housing Development Co. Ltd. and other developers vide order dated 03.02.2015 of CCI. However, we have been informed that the complainant has filed a writ petition before the Delhi High Court which is not admitted so far," a Tata Housing spokesperson said in an email response.

 According to Rohan Pate, director of Pune-based Amit Enterprises Housing, the company has provided an immediate and complete response to the notice. "All calculations are made as per the industry standards and relevant information is shared with the client in advance. There's no question of making one-sided contracts and not sharing any important information with our clients," Pate explained. 

A cartel typically implies arrangements among more than two firms aimed at increasing prices through tactics such as cuts in production. Cartelisation leads to high prices, poor quality and reduced choice. As per the Competition Act, the maximum penalty for cartelisation is three times a company's profit, or 10% of its turnover, whichever is higher. 

BUILDERS DENY CHARGES 

"We deny any allegation of cartelization. The real estate Industry is bustling with competition which in turn offers the best choices to the discerning customer. The sheer number of players in the industry overrules any form of cartelization, hence the CCI rightly dismissed the complaint before it earlier," said Ashish Puravankara - Managing Director, Puravankara Projects.

 "We believe the CCI will file a suitable reply in response to the notice received from the Delhi HC and defend its earlier order," he explained. 

The petition has named Gaursons India, K Raheja Corp, Amrapali Group, Supertech Ltd, Ansal Properties & Infrastructure, Prestige Estates Projects, Avalon Group, Salarpuria Group, Tulip Group and Ambuja Neotia Group as respondents in the matter. Email queries to these companies remained unanswered. 
 

Latest Realty News

Realty-Sector-Eyes-New-Year-to-End-Multi-Year-Slowdown
Dec 30, 2015
New Delhi/Mumbai: With a multi-year slowdown continuing in 2015 despite abundant supply and fall in prices, the real estate market is desperately looking for a recovery in the New Year when a new law is also expected to herald the much-needed transparency and accountability in the sector.
JP-Morgan,-Apollo-Global-set-to-exit-BPTP-after-protracted-arbitration-battle-
Dec 30, 2015
NEW DELHI | BENGALURU: JP Morgan and Apollo Global Management are set to exit entity level investments in Gurgaon-based builder BPTP after a protracted arbitration battle.
Property-market-in-Bengaluru-hit-by-slow-job-creation-
Dec 28, 2015
BENGALURU: Bengaluru, the most resilient property market in the country is seeing cooling off too with deserted marketing offices and desperate salesmen. The property sales in the city have fallen by as much as 30% in the last three quarter due to slow job creation and low salary hikes by IT companies. "The market is really bad, even festive season did not bring in buyers back to the market despite offers. Our sales fell by around 40% during the year," said a senior official from a listed proper
Hong-Kong-Apartment-Sells-for-Record-$77-Million:-Report
Dec 28, 2015
Hong Kong, China: A luxury apartment in Hong Kong sold for a record 594.7 million Hong Kong dollars ($76.7 million), days before Christmas, making it the most expensive flat in the city and possibly in Asia, reports said on Friday.
DDA-to-put-up-10,000-rejected-flats-for-sale-in-March-
Dec 28, 2015
NEW DELHI: Nearly 10,000 DDA (Delhi Development Authority) flats will be available early in the new year, most of them one-bedroom accommodations surrendered by allottees of the 2014 housing scheme. The land-owning agency hopes to turn around the large scale rejection, unusual for DDA projects, by putting up the flats for sale around March, along with others returned or yet to be allotted under other schemes.
China's-Home-Prices-Continue-to-Rise
Dec 27, 2015
Beijing: China's housing market continued to rise in 2015 signalling further stabilisation, according to an industry report issued on Saturday.
Credai-Visakhapatnam-to-hold-Property-Expo-from-25-Dec-2015
Dec 24, 2015
VISAKHAPATNAM: The Visakhapatnam chapter of Confederation of Real Estate Developer's Association of India (Credai) is to hold the second Vizag Property Expo 2015-16 from December 25 to 27 at Visakha Function Hall in the city.
DLF-gets-Rs-1,992-crore-from-GIC-for-stake-sale-in-2-projects
Dec 24, 2015
NEW DELHI: India's largest real estate firm DLF has said that it has received Rs 1,992 crore from Singapore's sovereign wealth fund GIC after the completion of its deal to sell 50 per cent stake in two of its new projects in Delhi. DLF had earlier announced that it has signed an agreement with GIC to enter into a joint venture to invest in two upcoming projects located in central Delhi. The deal was later approved by the Competition Commission of India.
Prateek-Group-raises-Rs-100-crore-for-its-Ghaziabad-township-project-
Dec 23, 2015
NEW DELHI: Real estate developer Prateek Group has raised Rs 100 crore from investment firm Xander group's NBFC arm Xander Finance for a township project it is building in Ghaziabad.
Lodha-Group-eyes-growth-in-commercial-realty-space-
Dec 23, 2015
MUMBAI: Lodha Group, the country's largest realty developer by sales, is now carving out a new vertical with strategic focus on commercial property developments. The group that has so far concentrated on residential development is looking to increase its presence in office space as well.

Latest Realty News Of State

Realty Talk's