Competition Commission of India (CCI) has found
realty major DLF , which is
facing a penalty of Rs 630 crore , guilty of abusing its
dominant market position in one more housing project.
After scrutinising a complaint by flat owners of Magnolia in Gurgaon, CCI has issued a cease and desist order against the company but did not impose any financial penalty.
MUST READ: March 2 | DLF extends losses to 2nd day, falls 6% On the order, a DLF spokesperson said, "This order is on the same lines as the earlier CCI order. No new penalty has been imposed on DLF. Our legal experts are studying the order and we will take requisite legal action. We continue to believe that we have a strong case."
The commission, according to an order posted on the Website, directed DLF to stop imposing unfair conditions in its agreement with flat buyers. It also asked the company to suitably modify unfair conditions imposed on its buyers within three months of the date of receipt of this order.
MUST READ: March 1 | MCA orders of inspection of DLF books After examining the clauses in the agreement, the order said that the director general (investigations) concluded that DLF had imposed unfair conditions on apartment buyers on account of the market power it enjoys at present.
The Commission, however, refrained from imposing fine on the company saying the nature of contravention in the case was similar to an earlier one filed by Belaire's Owners Association, in which DLF was asked to pay a penalty of Rs 630 crore.
MUST READ: Feb 14 | DLF plans 450-acre township in Gurgaon "The nature of contravention is identical and its object and effect in the instant case emerges from the position of strength of DLF Ltd in the same relevant market," it said.
The Commission feels that it will not be appropriate to separately impose penalty again in the instant case, the order said.
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