CCI finds DLF guilty of ‘unfair and abusive’ biz in Gurgaon

In a fresh order against DLF, the Competition Commission of India (CCI) has found the realty major guilty of indulging in “unfair and abusive” business practices in sale of apartments in a Gurgaon housing project.


CCI has asked DLF Gurgaon Home Developers Private Limited and its group companies to “cease and desist” from such unfair trade practices, but did not impose any fresh monetary penalty as Rs 630 crore fine has already been slapped on DLF for similar violation during the same period in a separate case.


“The Commission directs the Opposite Party and its group companies operating in the relevant market to cease and desist from indulging in the conduct which is found to be unfair and abusive,” the fair trade regulator said in its order.


The direction follows complaints filed with CCI against DLF Gurgaon Home Developers, wherein it was alleged that the company had lured home buyers to book apartments at “very attractive” rates in DLF New Town Heights project under a pre-launch scheme.


After the complainant booked the apartments and made the initial payments, they were asked to make payments under an installment plan and were asked to pay the money on different dates as per the demand.


However, they did not make the payments as “there was no sign of construction/development at the Project site…”

Later, they sought cancellation of allotment and requested for refund of the amounts paid by them, which the developer refused to do, saying that applications signed by buyers were irrevocable and the request for cancellation cannot be acceded to.


The buyers were also told that the only option available with them was to sell the property in open market, as per the Competition Commission of India order.


In response to the CCI order, DLF issued a statement saying: “We have received the order passed by the Competition Commission of India on Thursday and we are still studying it. We will take necessary steps as advised by legal counsels. It is also well-known that tens of thousands of flats are offered in Gurgaon within the Rs 45-50 lakh price range, with same amenities and in the same product line. We have also noticed that no penalty has been imposed.”



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