Lodha Healthy Constructions did not abuse market dominance: CCI

NEW DELHI: Competition watchdog CCI has dismissed the charges of abuse of dominant market position against real estate developer Lodha Healthy Constructions & Developers for residential apartments in Hyderabad.

"Since opposite party (Lodha Healthy) prima facie does not appear to be a dominant player in the relevant market, the issue of abuse of dominance by opposite party in that market in contravention of the provisions of the (Competition) Act cannot be gone into," Competition Commission of India (CCI) said in an order dated September 16.

In a complaint against Lodha Healthy Constructions, an individual had alleged that the firm did not reveal the terms of sale agreement with respect to a luxury villa he had booked in Hyderabad till the payment of the total sale consideration.

Further, it was alleged that the realty company refused to amend certain clauses in the agreement and concealed the fact of delay in construction from the apartment purchasers till it had collected up to 95 per cent of the sale consideration, among others.

The fair trade regulator observed that the presence of other well known builders in Hyderabad negated the contention that any consumer was dependent only on Lodha Healthy Constructions for purchase of an apartment.

"Presence of other builders of repute also shows prevalence of competition. It is not a case where opposite party could operate independent of competitive forces," CCI noted. PTI