DLFs luxury projects in Gurgaon hit competition panel hurdle

Written by Ronojoy Banerjee | Ronojoy Banerjee | New Delhi | Updated: Sep 23 2010, 03:53am hrs
The Competition Commission of India has imposed an ad-interim stay on the DLFs proposed luxury projects Park Plaza and The Belaire in Gurgaon. As per the order the real estate major has been asked not to cancel allotments of apartments and to refrain from creating third party rights in its place.

As per two separate complaints filed earlier this year by the Belaire Owners Association and Park Plaza Resident Welfare Association, the countrys largest real estate developer failed to deliver the residential flats on time by putting discriminatory and abusive clauses in its agreements with the allotees. The complaints also alleged that DLF was abusing its dominant position.

Following the complaints the CCI had found prima-facie evidence of anti-competition thereby directing its director general office (investigation) to conduct a thorough probe.

According to CCI sources the informants had also appealed to the commission to impose an ad-interim relief order till the investigation was fully completed. The members of the commission met and have ordered the ad-interim order to be imposed, a CCI official said.

When contacted a DLF spokesperson said, We have not received any communication from CCI in this regard. Section 33 of the Competition Act, 2002, empowers CCI to pass an order to protect consumers getting affected due to the long pendency of the litigation.

The two proposed projects are expected to be worth more than Rs 4,000 crore housing more than 2,000 flats with starting prices in excess of Rs 1.5 crore. The construction of the projects had started in August 2006 and was expected to be completed by end-2009, however the deadline has now been extended to April 2011.