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DLF to file petition against CCI's Rs630-crore penalty news
06 September 2011

Realty major DLF is about to file a petition contesting the Rs630-crore penalty levied on it by competition watchdog CCI (Competition Commission of India). The CCI had found DLF guilty of abusing its dominant market position.

According to NDTV, which quoted sources, DLF would likely file its petition in the Competition Appellate Tribunal or COMPAT on 12 September and seek its intervention on grounds that the CCI imposed the fine without issuing a show-cause notice to the company first.

Sources say DLF would likely question CCI's premise of  "dominant position" as it had got only 6 per cent of all Gurgaon project licences issued during 2002-2009.

DLF's petition would also point out that CCI ignored pay-out to owners due to delay in flat allotment. DLF paid Rs40 lakh per flat at Belaire and Rs30 lakh per flat at Park Place due to delayed allotment, sources say.

The competition watchdog ordered a probe against DLF following customer complaints about its Belair project in Gurgaon. According to one such complaint, DLF had promised completion of the Belaire residential project in 2009. However, buyers had not till date got possession.
The realty major also increased the number of floors in the apartment complex, which led to increase in the number of apartments in Belaire from 384 to 564.

Following its first order of 16 August, the CCI found yet another instance of DLF abusing its dominant market position in the matter concerning the Park Place Residents' Association in Gurgaon.

In its 65-page order, CCI directs 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 three months of the date of receipt of this order."

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DLF to file petition against CCI's Rs630-crore penalty