Competition Commission of India asks DLF to stop unfair practices

The Competition Commission of India (CCI), which imposed a Rs. 630 crore penalty on DLF Ltd for abusing its dominant position in the housing sector, has now asked it to modify unfair conditions imposed on home buyers in Gurgaon.

The CCI, in a judgement on a petition filed by DLF Park Place Residents Welfare Association, asked DLF and its group companies to “cease and desist from formulating and imposing such unfair conditions in its agreement with buyers in Gurgaon“.

The CCI also ordered the firm to modify unfair conditions imposed on buyers within 3 months.

No penalty has been imposed this time, although CCI said this tantamounts to a serious adverse effect on the rights of allotees.

Since the nature of the contravention of provisions of the Competition Act 2002 is identical in “its object and effect“ as in the earlier case and “emerges from the position of strength of DLF Ltd in the same relevant market“ it will be inappropriate to impose a penalty, the order said.

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