CCI ticks off DLF in new case of unfair practice, but no fine
The Competition Commission of India (CCI) on Tuesday pulled up realty major DLF for use of unfair conditions in its agreements with its home buyers and asked the company to modify them within three months. HT reports.india Updated: Aug 30, 2011 20:44 IST
The Competition Commission of India (CCI) on Tuesday pulled up realty major DLF for use of unfair conditions in its agreements with its home buyers and asked the company to modify them within three months. The directive from the anti-trust body mandated to rule over issues of dominance and monopoly, comes in response to a complaint filed by the Park Place Resident's Welfare Association in Gurgaon.
On August 16, CCI had slapped Rs 630 crore fine on DLF. This time, however, the fine was not imposed on the realtor.
"The company will be filing an appeal with the Competition Appellate Tribunal (COMPAT) shortly as the company continues to believe that it has a strong case," DLF said in response to the CCI order. In its 65-page order, CCI said it has directed "DLF and its group companies... to cease and desist from formulating and imposing such unfair conditions in its agreement with buyers in Gurgaon, (and) to substantially modify unfair conditions imposed on its buyers... within 3 months of the date of receipt of this order."
The resident's welfare association complained that DLF had diverted from the original stipulations of the agreement without keeping the buyers in loop. One such diversion was that of increasing the number of floors from 19 to 29 floors. It was also alleged DLF had devised a standard agreement which was one-sided.