CCI rejects plea for sanctions against DLF's new project

NEW DELHI: Competition Commission of India ( CCI) has dismissed an appeal seeking anti-dominance sanctions against a new project of realty major DLF, saying it will not entertain any such plea merely on the basis of penalties imposed on the company's Belaire housing project.

After finding DLF to have abused its dominant position with respect to its Belaire project at Gurgaon in national capital region, CCI had fined DLF in August 2011 and had asked it to 'cease and desist' from anti-competitive practices.

CCI had passed the order after investigating into complaints filed by the project's flat buyer association, which has now filed a petition before the fair trade regulator to seek similar sanctions against a new DLF project, SkyCourt.

However, the fair trade regulator has ruled that "the question regarding terms and conditions of agreement of the other projects that may be launched by DLF in Gurgaon was never before the Commission".

"Therefore, an application in respect of terms and conditions of other projects cannot be entertained," CCI said in an order and rejected the application.

In its application regarding new projects of the company, the Belaire Owner's Association had alleged that DLF was still violating the CCI orders "by imposing similar terms and conditions on buyers in the agreement with regard to a new project namely SkyCourt launched by DLF in Gurgaon."

Such terms and conditions had already been held anti- competitive by the CCI in its orders dated August 12, 2011 and August 29, 2011, the applicant had said.

The two orders were passed with regard to the company's Belaire, Park Place and Magnolia projects and included a penalty of Rs 630 crore against DLF, besides other sanctions.

The CCI order against DLF, which also asked it to "suitably" modify terms of its apartment buyers agreement for the concerned project, was later challenged by the company before the Competition Appellate Tribunal ( COMPAT).

After COMPAT's directions, CCI modified the buyers agreement for Belaire project on January 3 and later said that the same modifications would apply to Park Place and Magnolia projects as well.