Competition Commission imposes Rs 2.4 crore penalty on DLF

NEW DELHI: The Competition Commission has slapped Rs 2.4 crore penalty on realty major DLF for not complying with its directions to cease and desist from unfair trade practices.

Besides, the fair trade watchdog has said that continued non-compliance would result in penalty of Rs 1 lakh every day.

Holding that DLF contravened its directions, Competition Commission of India (CCI) has imposed a fine of Rs 2.4 crore.

The CCI order, dated March 26, has come on complaint filed by Magnolia Flat Owners Association and one Rahul Kapoor regarding demand letters issued to them by DLF "under the garb of super area".

The complaint was filed against DLF Universal Ltd, Haryana Urban Development Authority and the Director Town and Country Planning, Haryana.

After looking into the matter, CCI found that DLF had contravened its order, dated January 31, 2012 by issuing the impugned demand letters dated November 28, 2012. Besides, the entity "failed to show any cause, much less any reasonable cause, for non-compliance of the aforesaid order".

"No stay on the cease and desist order by the Commission was operating when the non-compliance occurred. The said demand letter has not been withdrawn till date," the order said.

According to the watchdog, its order has to be complied with by the concerned parties and the same cannot be permitted to be opted out by the parties through negotiations.

"...considering the totality of the facts and circumstances of the case, the Commission deems it appropriate to impose a fine of Rs 50,000 upon the opposite party No 1 (DLF Universal) for each day of non-compliance which period is to be reckoned from November 28, 2012 till today (the date of passing of this order) totalling to Rs 2,41,50,000," it said.

The penalty has to be paid within 60 days from the order date.
As per CCI, DLF Universal will be saddled with a fine of Rs 1 lakh for each day of non-compliance beyond the date of order or "till the time the total fine reaches to the maximum statutory limit of Rs 10 crore, whichever is earlier".