DLF fined Rs 2.4 crore for not complying with CCIs order

Written by fe Bureau | New Delhi | Updated: Apr 4 2014, 11:00am hrs
For non-compliance of its earlier order to "cease and desist" from unfair trade practices, issued in January 2012, the Competition Commission of India (CCI) has slapped a penalty of R2.4 crore DLF Universal, a wholly-owned subsidiary of DLF. CCI has also said that continued non-compliance would result in penalty of R1 lakh every day till the total penalty reaches the maximum statutory limit of R10 crore, whichever is earlier.

The penalty has to be paid within 60 days from the order date.

CCI order dated March 26 has come over a complaint filed against DLF Universal and others by Magnolia Flat Owners Association and one individual. The other co-complainant are the Haryana Urban Development Authority and the Director Town and Country Planning, Haryana. The complainant alleged that DLF issued demand letters to them "under the garb of super area".

"...considering the totality of the facts and circumstances of the case, the Commission deems it appropriate to impose a fine of R50,000 upon the opposite party No 1 (DLF Universal) for each day of non-compliance which period is to be reckoned from November 28, 2012 till today (the date of passing of this order) totalling to R2,41,50,000," it said.

After looking into the matter, CCI found that DLF had contravened its order, dated January 31, 2012 by issuing the impugned demand letters dated November 28, 2012. Besides, the entity "failed to show any cause, much less any reasonable cause, for non-compliance of the aforesaid order", it said.

"No stay on the cease and desist order by the Commission was operating when the non-compliance occurred. The said demand letter has not been withdrawn till date," the order said.

According to CCI, its order has to be complied with by the concerned parties and the same cannot be permitted to be opted out by the parties through negotiations.