JAL has been found guilty for imposing unfair and discriminatory conditions on the allottees in Wish Town, Jaypee Greens project in Noida and Greater Noida, the Ministry of Corporate Affairs said in a statement.
The Competition Commission of India (CCI) has slapped a penalty of Rs 13.82 crore on Jaiprakash Associates Limited (JAL) for abuse of dominant position in the market of independent residential units such as villas and estate homes in their integrated township. JAL has been found guilty for imposing unfair and discriminatory conditions on the allottees in Wish Town, Jaypee Greens project in Noida and Greater Noida, the Ministry of Corporate Affairs said in a statement. The final order was passed on the basis of information filed by a buyer who alleged that conditions imposed by JAL were arbitrary and self-favoured. Besides, a cease and desist order has also been issued to JAL.
The investigation found out that JAL was imposing its standard terms and conditions in a way that unilaterally favoured itself and were one-sided, the statement said. CCI also found out that the terms were vague and the buyers’ rights were completely neglected. Conducts such as collecting money or charges from the home buyers without delivering the residential unit of time, adding additional construction, amending or altering the layout plans, the imposition of various charges, right to raise finance from any bank or financial institution without consulting buyers were found to be abusive in the investigation.
In light of the findings, the Competition Commission of India concluded that JAL has violated Section 4 of the Competition Act, 2002 and the penalty is imposed, which is 5 per cent of the average revenue of JAL from the sale of independent residential units in the relevant market.
“This is not a problem of one or two societies of NCR. Almost all the real estate groups have put their terms and conditions to unilaterally favour themselves. The government should look into these problems before a flat buyer goes to the court to file a complaint,” Shweta Bharti, General Secretary, Noida Extension Flat Owners Welfare Association (NEFOWA), told Financial Express Online. There is no reason why somebody would want to invest in real estate and keep running to the court, she added.