Competition Commission of India orders fresh probe against DLF

Mar 13 2014, 20:16 IST
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DLF is already under the scanner of the fair trade watchdog in other cases of anti-competitive practices. PTI DLF is already under the scanner of the fair trade watchdog in other cases of anti-competitive practices. PTI
SummaryDLF is already under the scanner of the fair trade watchdog in other cases of anti-competitive practices.

The Competition Commission of India has ordered a fresh probe against realty major DLF for allegedly imposing unfair and unreasonable conditions on apartment buyers at one of its projects in Gurgaon.

DLF is already under the scanner of the fair trade watchdog in other cases of anti-competitive practices.

Finding prima facie evidence of violating fair trade norms, the Competition Commission of India (CCI) has now ordered probe into DLF's New Town Heights residential project, (located at Sector 86) in Gurgaon, Haryana.

The allegations relate to certain anti-competitive clauses in the apartment buyer's agreement.

According to the Commission, clauses of the agreement referred to in the current matter are identical to ones entered into by DLF in other abuse of dominance cases that are already being probed. The earlier cases are at different stages of investigation by CCI's Director General (DG).

The latest probe has been ordered against DLF, DLF Home Developers and DLF New Gurgaon Homes Developers as well as on role of persons, who were in-charge of these entities.

"As such, the Commission is prima facie of the view that the present case requires to be investigated into by the Director General," CCI said in an order dated February 27.

"Considering the facts of the case, the relevant market in the present case, prima facie, appears to be same as determined in earlier three cases ie the market of provision of services for development of residential apartments in the geographical area of Gurgaon," it noted.

An individual has alleged that the practices followed by DLF group were abusive of its dominant position since it imposed highly arbitrary, unfair and unreasonable conditions through 'Apartment Buyer's Agreement'.

It has also been alleged that terms of the agreement were heavily loaded in favour of DLF.

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