Real Estate Firms Fined for Anti-Competitive Practices

Real estate firms are facing the CCI- probe. The Competition Commission of India (CCI) has started their probe against five real estate firms which are alleged of anti-competitive practices.
anti- competitive practices burn the real estate builders

Anti- competitive practices burn the real estate builders as they get fined.

Five real estate firms are alleged of conducting anti-competitive practices. The real estate players like DLF, JP Associates, Omaxe, Tulip Infratech and Larsen & Toubro are alleged of anti-competitive practices.

Corporate Affairs Minister Sachin Pilot informed the RS- Rajya Sabha that the CCI has started its probe against the alleged real estate builders. He disclosed the names of the real estate players who are alleged.

Mr. Pilot informed that nearly 15 such cases are charged against DLF. DLF is fined Rs.630 Cr. Further CCI has passed a “Cease & Desist” order against the real estate major.

DLF Ltd.’s plea was heard finally by the COMPAT (Competition Appellate Tribunal) on Sunday. The case has been unresolved for a quite long time. CCI passed the Cease & Desist order on August 12 of the previous year. However the penalty of Rs.630 Cr was imposed on DLF after finding that the real estate builders have violated the codes of abuse of the dominant market position.

CCI passed the order after its probe in to the matters. CCI had moved on the basis of complaints from two flat buyers’ associations. Two DLF – project flat buyers’ associations had complained to the CCI that the real estate firm had delayed the project.

Besides the delay, they alleged that there were more number of floors against the previously given information. These flat buyers’ associations reside in two DLF projects in Gurgaon.

Hearing the DLF’s plea, COMPAT ordered the CCI to clarify the matter. The fair trade regulator is asked to produce clarifications to COMPAT. The Competition Appellate Tribunal is to hear another similar case against the same real estate developer.

The real estate firm is accused of abusing its dominant position in commercial project at Jasola- DLF Tower Jasola in NCR. Admitting the DLF’s plea for more time to reply, COMPAT has allowed the firms to have a months’ time. Next hearing on this case will be on Jan – 24, next year.

The charge of abuse of dominant position was filed by the Owners and Occupants Welfare Association of DLF Towers at Jasola. The welfare association has informed that the CCI has discarded their petition. DLF is asked to submit their reply.

At the same time the CCI has recently passed another case of abuse of dominant position. This charge is on the basis of a Chennai residential project.  Chennai case also shows some development in the same way as the Gurgaon case.

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  1. Pingback: Real Estate Developer- Buyer New Agreement Framed By CCIPropertyWala.com

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