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Tribunal issues notices to CCI, DLF in Jasola case

Last Updated: Monday, October 8, 2012 - 19:05

New Delhi: The Competition Appellate Tribunal (COMPAT) has issued notices to two DLF group firms and the CCI on a plea challenging the fair trade regulator's dismissal of complaints, wherein realty major was accused of abusing its dominant position in a project at Jasola here.

Following an appeal filed by the Owners and Occupants Welfare Association of DLF Towers at Jasola in the national capital, the tribunal asked the CCI (Competition Commission of India) and two DLF subsidiaries -- DLF Commercial Developers and DLF Services -- to file their replies within six weeks.

The tribunal has also issued a notice to the Delhi Development Authority in this matter, which has been listed for further hearing on November 29.

The Association had approached COMPAT against a CCI order dated July 4, wherein it had closed the complaint alleging abuse of dominant position by DLF in the relevant market of high-end commercial space in south-west Delhi.

The association's petition came for hearing on October 4 before a COMPAT bench, headed by Chairman V S Sirpurkar.

After hearing the complaint, CCI had decided not to investigate the complaints further as "prima facie" it did not find any evidence to establish abuse of dominant position by the real estate developer.

"On a careful consideration of the entire matter, the Commission is of the view that based on the facts of the case as stated in the information, the dominance of the DLF in the relevant market does not get established.

"The Commission accordingly holds that prima facie no case is made out for directing the Director General (DG) .. To conduct investigation into the matter," CCI had said.

However, one of the CCI members had dissented with the CCI order and stated that "there exists a prima facie case and the DG shall be directed to cause an investigation into the matter".

Prasad was of view that buyers were "totally at the mercy of Opposite Party-1 (DLF Commercial Developers) and Opposite Party-3 (DLF Services) and being fleeced by them by putting several unfair and discriminatory conditions and price".

Prasad's contention was overruled by other four members of CCI and the commission passed the order by a majority.

CCI had observed that large numbers of developers and builders are engaged in developing commercial space and therefore there could not be a dominance by one player.

The fair trade regulator found that within Jasola District, there were about 11 other developers that were offering commercial space at more competitive price than DLF.


First Published: Monday, October 8, 2012 - 19:05
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