SC asks DLF to deposit Rs 630 cr in three months

Written by fe Bureau | New Delhi | Updated: Aug 28 2014, 06:13am hrs
In a setback for realty major DLF, the Supreme Court on Wednesday asked the company to deposit within three months R630-crore penalty imposed by the Competition Commission of India (CCI) for abusing its dominant market position with regard to a residential society in Gurgaon.

A bench headed by Justice Ranjana Desai while admitting the DLFs appeal refused to stay the Competition Appellate Tribunals May 19 order that confirmed the penalty of R630 crore imposed by the CCI.

In an interim order, the apex court said that the realty major shall deposit Rs 50 crore within three weeks and balance Rs 580 crore within three months with its registry, which in turn shall invest the amounts in a nationalised bank. It also asked DLF to give within three weeks a fresh undertaking that in the event of dismissal of its appeal the realty firm will deposit accumulated interest at the rate of 9%, as directed by the tribunal, or such amount as asked by the Supreme Court.

Meanwhile, DLF in a statement to BSE said: The SC has directed DLF to deposit Rs 630 crore in an interest-bearing fixed deposit with the court for the duration of the appeal proceedings...The entire deposit is subject to the final decision of the Supreme Court. The copy of the order passed today by the Supreme Court is still awaited. DLF will take all steps to comply with the directions of the Supreme Court and remains confident of the merits of its case.

The development saw the companys scrip close down 4.44% at R183.05 on the BSE.

CCI chairman Ashok Chawla said: The whole set of real estate developers and their associations will now have to closely look at the kind of arrangements they have with the prospective buyers and to make sure that those are not one-sided.