Real Estate Developer- Buyer New Agreement Framed By CCI

Competition Commission of India (CCI) frames a new buyer real estate developer agreement which the fair trade regulator hopes to become a standard agreement. The revised agreement is expected to meet almost all the issues related to real estate sales.
CCI initiates new agreement for real estate sales

CCI hopes to tackle the future problems between the real estate developers and the buyers through their new agreement for real estate sales.

Competition Commission of India (CCI) prepares a model framework for commercial agreements between the property purchaser and the real estate builder. The fair trade regulator CCI hopes this framework to serve as a standard for the real estate industry.

CCI prepares the model framework in relation with violation of market dominance case against DLF. The real estate major was fined Rs.630 Cr penalty by CCI. The real estate major had appealed to the Competition Appellate Tribunal (COMPAT) against this fine. Continue reading

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. Continue reading

Competition Commission of India Pulls Up DLF

The Competition Commission of India (CCI) has pulled up real estate major DLF Ltd in a recent order for cancelling the allotment of an apartment of a member of DLF’s Park Place RWA, stating that it was in “direct contravention” of its stay order of September 2010.

The order was passed by the commission to prevent the opposite party from abusing its dominant position to the detriment of allottees during pendency of the proceedings. The CCI also severely admonished the builder for discriminatory behaviour towards members of the owners’ association and other allottees/owners.

The cancellation letter for one Vipin Mahajan was issued on January 28 last year when the interim order was in force. According to Mahajan, despite the directions being in force to date, the opposite party issued a letter in January last year, cancelling the booking of his apartment and forfeited a sum of Rs 23,06,778 out of the total amount of Rs 44,89,503.

While the CCI accepted this restoration of status quo and therefore felt that no further direction needs to be passed as far as restitution of Mahajan’s apartment was concerned which had been a great relief for the allottee concerned, the CCI as prescribed by the Competition Act 2002 “is obliged to impose penalty because of the deliberate non-compliance”? This, the order stated, was a violation of Section 42 of the Act.

Also, Section 48 of the Act makes it a liability of every person for penalty, who at the time of contravention was in charge of or was responsible to the company for conducting its business. DLF will now have to disclose the name of the errant persons who were responsible for the misconduct and also give a show cause notice as to why the penalty should not be imposed. The case on the same is up for hearing on May 17.

Meanwhile, a spokesperson of DLF Ltd clarified that the company had “restored the ownership of the apartment which was %cancelled due to non-payment of dues by the %allottee”.

CCI again caught DLF for imposing unfair conditions on flat owners.

CCI has again accused DLF of imposing unfair conditions on home buyers on its high-end residential project Magnolia in Gurgaon. For this, Magnolia Flat Owners’ Association had filed a complaint against DLF Universal, Haryana Urban Development Authority and the Director Town and Country Planning, Haryana, with the Competition Commission of India (CCI).

In the report, the CCI director general found that DLF has issued allotment letters, and apartment buyers’ agreements were signed even before it got approvals from the town planner. Also, the builder has revised the building plans and applied for increasing the height of the towers after collecting 90% of the money from the buyers, and two months after the original date of delivery promised by the company.

CCI had also found DLF guilty of abusing its position at the Park Place Project in Gurgaon, where they asked the company to cease and desist from imposing unfair conditions on buyers. The order had also directed DLF to suitably modify the unfair conditions imposed on existing buyers within three months.

Drish Paul, the president of the Magnolia Flat Owners’ Association, said that “Many people are living on rent, waiting for apartments to be handed over. We would eventually like to get compensated for the loss due to the delay in completion of the project.”

In a similar order in August 2011,CCI had slapped a fine of 630 crore on DLF for unfair practices, abuse of market dominance and disregard for consumer rights in its Belaire residential project in Gurgaon.