DLF plunges 6% after fined by CCI

DLF on Tuesday dropped over six per cent on bourses after the competition watchdog CCI found the realty major guilty of abusing its dominant market position and slapped a penalty of around Rs 600 crore on it.

The company shares, which opened on a positive note, fell 6.91 per cent intraday before settling 5.92 per cent lower at Rs 189 a share on the BSE as investors reacted to the news.

On the National Stock Exchange, the scrip settled at Rs 187.10 a piece, which is 6.54 per cent lower than its previous close. It fell 6.59 per cent to Rs 187 a piece during the day.

On the volume front, over one crore shares of the company changed hands on both the bourses during the day.

Analysts attributed the fall to investors' knee-jerk reaction to the news report of the penalty on the company.

Competition watchdog CCI on Tuesday imposed a penalty of around Rs 600 crore on realty major DLF Ltd for abusing its dominant market position.

The penalty, which amounts to 7 per cent of the company's average annual turnover of last three years, was imposed as DLF has been proven guilty of violating section 4(2) of the Competition Act, 2002, sources said.

A company violates Section 4(2)(a) of the Competition Act when it directly or indirectly imposes unfair or discriminatory conditions or prices with respect to the purchase or sale of goods or services.

Meanwhile, the BSE benchmark index Sensex closed 108.69 points lower at 16,730.94.