Competition Commission of India has disposed of a complaint against Omaxe Ltd as the fair trade regulator did not find the company indulging in anti- competitive practices by nominating a maintenance agency for its housing project.
New Delhi: Competition Commission of India has disposed of a complaint against Omaxe Ltd as the fair trade regulator did not find the company indulging in anti- competitive practices by nominating a maintenance agency for its housing project.
The complaint filed by Ram Niwas Gupta and Priyanka Gupta had alleged that Omaxe indulged in anti-competitive practices by reserving the right to nominate a maintenance agency in the 'Omaxe City' at its own discretion.
The realty firm had nominated Shanvi Estate Management Services as the maintenance agency in the said project.
The Commission after viewing the facts of the case and findings of the Director General ruled that Omaxe and Shanvi Estate Management Services were not involved in anti- competitive practices.
Consequently the Commission in its order said, "... The matter relating to this information is disposed off accordingly and the proceedings are closed forthwith".
The complainants had alleged that the Buyers' Agreement with Omaxe had stipulated terms and conditions which were one sided and unfair.
According to the agreement the plot buyers had to pay maintenance charges fixed by the company or the maintenance agency from time to time depending upon the cost.
Further, the plot buyers would be liable to pay interest at the rate of 18 per cent per annum for non-payment of any of the charges within the time specified failing which buyers would not have the entitilement to enjoy common services, including electricity and water.
The Commission noted that buyers agreement clearly states that the maintenance agency would provide its service only for the first five years of the project as allowed under the law.
Further, the Commission said that maintenance is required during the period of construction since the flat owners would not have occupied the flats and cannot organise maintenance.
Moreover, the agreement also provides that maintenance agreement will be in place only until the Resident Owners Association is formed, thereafter the association could appoint agency of their choice, the Commission said.