CCI rules out abuse of dominance by PAL Infrastructure

NEW DELHI: Fair trade regulator Competition Commission has rejected a complaint alleging real estate firm PAL Infrastructure and Developers of abusing its dominant position in market for residential flats in Gurgaon.

According to the Competition Commission of India ( CCI) dominance of PAL Infrastructure in the relevant market "is prima facie not in existence and so there is no question of abuse of the same".

"...no prima facie case is made out for directing the Director General to carry out investigation into the matter," it said in its order dated April 30.

The complaint was filed by an individual, who had sought a change of location of the booked flat, against the company. However, it was alleged that the firm offered a bigger size flat entailing an additional cost of Rs 12.24 lakh. Besides, the complainant was asked to pay interest on the extra "due amount" because of increased total price since 2007.

It was thereby alleged PAL Infrastructure of abusing its dominant position by imposing unfair and one sided conditions on him through agreement entered between them.

The complainant had asked CCI that the company should be directed to enter into a flat Buyer's Agreement with him and the interest on due payments should start from the date of signing of the agreement.

However, CCI said " the informant in the information merely averred that the opposite party (PAL Infrastructure) abused its dominant position, without alleging that the opposite party enjoyed a dominant position in the relevant market"

CCI noted from the information available in the public domain that PAL Infrastructure "was not the only or a major real estate developer offering residential flats in Gurgaon".

"Presence of other real estate developers offering residential flats also indicates that the informant was not dependent upon the opposite party for provisioning of residential flat," it added.