CCI rules no abuse of market dominance by Eldeco Housing
New Delhi: Fair trade watchdog CCI has dismissed the charges of abuse of dominant position against realty firm Eldeco Housing and Industries in the market for residential flats in Lucknow.
Competition Commission of India (CCI) said Eldeco Housing was not a dominant player in the relevant market and as such cannot "abuse its dominant position in the relevant market within the meaning...Of the (Competition) Act".
Accordingly, in an order dated October 3, CCI said prima facie " it is not a fit case for issue of directions for causing an investigation to be made by DG (Director General)".
As per the complaint filed by a resident at Eldeco Housing's residential complex in Lucknow, the company had allegedly abused its dominant position by dictating the terms of the sale agreement.
The agreement allegedly did not put any obligation on the firm for delays and other failures and liabilities and had placed the apartment allottees in an extremely disadvantageous position. Also, the action of the builder pursuant to the terms of such agreement was unfair and discriminatory.
The complainant had alleged that the residential complex launched by the firm in 2006 was to be completed in three years but "was not completed yet".
CCI noted that there was presence of other builders of repute having similar projects in the area showed "prevalence of competition".
"It is not a case where Opposite Party (Eldeco Housing) could operate independent of competitive forces," CCI said.
"... The presence of other well-known builders in the relevant market negates the contention that informant or any other consumer was dependent on the opposite party alone for purchase an apartment," it added.