CCI to probe market abuse charges against Jai Prakash Associates

Written by PTI | New Delhi | Updated: Sep 13 2013, 03:33am hrs
Fair trade regulator CCI has ordered investigation against Jaiprakash Associates for alleged abuse of dominant market position in sale of flat in its housing projects.

The Competition Commission of India (CCI) has asked its Director General, the regulator's investigating agency, to initiate a probe in respect of allegations regarding violation of various provisions of the Competition Act by Jaiprakash Associates. The DG has been asked to submit the report within two months.

In an order posted on CCI website today, fair trade regulator said that investigation has been ordered in response to a complaint filed by an individual, Raghuvinder Singh, against 'Jai Prakash Associate' alleging contravention of Section 4 of the Competition Act.

This section relates to abuse of dominant position, directly or indirectly, by imposition of unfair or discriminatory condition in purchase or sale of goods or services, as also by predatory pricing.

The complainant alleged that he had booked a flat in May 2010 in the company's residential scheme namely 'Jay Greens'.

The possession of the flat was assured to be given within 24 months but it was not given. Further, he alleged that the firm failed to complete the construction and raised an illegal and unreasonable demand from him against the terms of the contract, failing which it threatened cancellation of the allotment.

The complainant alleged that the company was in a dominant position having huge projects in the relevant market of the development and sale of residential apartments in Noida and Greater Noida area.

"It (the firm) acted in an illegal and arbitrary manner by taking money from the informant (Singh) in May 2009 as booking amount and not offering possession even after 4 years," the complainant alleged.

"... the informant was aggrieved by the illegal demand of money (through demand notice in September 2012) in violation of the agreed payment plan and notice of cancellation sent by the company to him in May 2013 on non-fulfilment of such illegal demands," he added.

After hearing the complainant, CCI came to a conclusion that a prima facie case has been made for investigation of allegations made against the company.