The CCI stunned the housing market when it slapped a Rs 630 crore fine on DLF for unfair practices at its Belaire project in Gurgaon. The competition regulator is now investigating charges of market dominance and anti-competitive practices in the Park Place, Magnolias and New Town Heights projects.
“Complaints have come from buyers of residential properties in Park Place, Magnolias and New Town Heights against DLF. We will issue an order soon,” commission officials were quoted as saying.
Officials said apart from DLF, the commission was also investigating about 10 cases involving other real estate players where complaints under sections 3 and 4 of the Competition Act 2002 had been lodged. Sections 3 and 4 deal with anti-competitive agreements and abuse of dominant position, respectively.
Next in CCI’s line of fire were cement companies such as Ultratech, ACC and Ambuja Cement, who might have misused dominant market positions.
The commission can charge a penalty of up to 10 per cent of 3 year average turnover of a company in each case of abuse of market dominance and anti-competitive practices. DLF posted an average turnover of Rs 9,006 crore between 2009 and 2011. In Belaire, the fine was 7% of the average turnover.
The CCI will also initiate “suo-motu” investigation into other real estate players, including Lavasa and DB Realty, as anti-competitive practices have become a norm in the real estate sector.
“Buyers in general are facing problems such as escalation of property price, change in build-up area and delay in getting possession. It is, therefore, appropriate to look into the general practice along with specific complaints,” said officials.
The commission, which was set up two years back, is currently investigating around 140 cases across India.
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