CCI rules out abuse of dominance by Universal Buildwell

NEW DELHI: Fair trade regulator CCI has dismissed the charges of abuse of dominant position against real estate company Universal Buildwell in the market for residential flats in Faridabad.

Competition Commission of India (CCI) said there does not exist a prima facie case for causing an investigation to be made by the Director General "as Universal Buildwell did not appear to be dominant in the market of development of residential space/ flats in the region of Faridabad".

In a complaint against Universal Buildwell, an individual had alleged that the company had abused its dominant position by imposing unfair and discriminatory conditions in the 'Builder-Buyer Agreement' regarding a flat he had booked.

The complainant had alleged, among other things, delay in construction work and that his money was been illegally retained by the real estate company.

Further he had alleged the Universal Buildwell issued him a termination letter in respect of the flat. This according to the complainant amounted to unfair trade practices and deficiency in services on the part of the company.

However, CCI in it order dated April 10 has noted that "the informant in the information merely averred that the opposite party (Universal Buildwell) abused its dominant position, without alleging that opposite party enjoyed a dominant position in the relevant market".

The fair trade regulator observed that from information available in public domain it was clear that Universal Buildwell "was not the only or a major real estate developer offering residential space/ flats in Faridabad".

"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.