Real estate firm DLF under competition panel's scanner
06 August 2010
The Competition Commission of India (CCI) has asked a unit of the country's biggest real estate developer, DLF Ltd to submit its response in two weeks in a case relating to misuse of its position as a market leader.
The complaint against DLF Home Developers Ltd pertains to delays and the firm increasing the number of units it is building on the same area.
On Thursday, corporate affairs minister Salman Khurshid told the Lok Sabha in a written reply, "The Competition Commission of India has received information alleging abuse of dominance by four developers -- DLF New Gurgaon Homes Developers, DLF Home Developers Ltd and others, DLF Ltd and others, and DLF New Gurgaon."
"The ministry of corporate affairs is concerned with taking action against the developers in the realty sector which are registered as companies ... for offences / violation of the provisions of the Companies Act 1956, as and when noticed," he said. He added that in case the practices followed by a real estate developer was anti-competitive or in the nature of abuse of dominance, the commission initiates action under the provisions of the Competition Act, 2002.
While an investigation by the director general of CCI has been on since May, CCI members heard lawyers of both parties on 3 August.
This was based on an injunction sought by the petitioners - the owners' associations - on 29 June.