COMPAT upholds CCI’s Rs 630 crore penalty on DLF

NEW DELHI: In a development that will provide succour to thousands of aggrieved home-buyers across the country, the Competition Appellate Tribunal today upheld a penalty of Rs 630 crore on real estate firm DLF for abusing their dominant position in industry against buyers.

In 2011, the Competition Commission of India had slapped the penalty after complaints by flat buyer associations of two DLF projects in Gurgaon, DLF Park Palace and The Belaire. The buyers had alleged that the builder had delayed possession of apartments as they had changed their original plan to accommodate more floors. DLF now has the option of moving Supreme Court against the COMPAT order, said lawyers and a DLF executive.

“The court today dismissed the appeal of DLF and upheld the Rs 630 crore penalty imposed by CCI,” said Vaibhav Gaggar, partner at law firm Gaggar & Associates, who was representing the two buyers associations.
“COMPAT found DLF abusive in its practices, especially in relation to modifying super area, common area, increasing the height of the building midway through the project and imposing holding charges,” he said.

Sanjay Bhasin, president of the Belaire Owners Association said this order has paved the way for buyers in the DLF projects to file compensation claims.

A DLF spokesman said, “We will examine the order and decide on the next step.”

On the BSE, DLF shares were trading 4.43% higher at Rs 177 at 1.47 pm.