Another blow: CCI slams DLF for abusing market position
The Competition Commission of India (CCI) has again rapped realty major DLF on charges of abusing its dominant market position to the disadvantage of apartment buyers in its ultra-luxury residential project Magnolia in Gurgaon.india Updated: Mar 09, 2012 22:10 IST
The Competition Commission of India (CCI) has again rapped realty major DLF on charges of abusing its dominant market position to the disadvantage of apartment buyers in its ultra-luxury residential project Magnolia in Gurgaon. The latest blow is the third in line for DLF from the anti-trust watchdog.
“This order is on the same lines as the earlier CCI order,” said a DLF spokesperson. “No new penalty has been imposed ... we continue to believe we have a strong case.”
The present order has been delivered on the complaints of Magnolia Flat Owners Association against DLF. The CCI order slammed the clause in buyer agreement where only the flat owners loose money if the project does not get requisite sanctions or any adverse order is passed by the government. The order also said that DLF’s decision to appoint a sole arbitrator by itself --- whose decision shall be final and binding — to arbitrate on dispute resolution as unfair and abusive.
CCI said in its 39-page order that the commission finds DLF in contravention of Section 4(2)(a)(i) of the Act. A firm violates this section when it directly or indirectly imposes unfair or discriminatory conditions or prices with respect to the purchase or sale of goods or services.