More cases against DLF pending with Competition Commission

Minimum ten complaints against India’s largest real estate company DLF are pending with the CCI (Competition Commission of India ).
The latest complaint was filed few days ago,  before CCI’s Rs 630-crore fine on the company last week, which followed a petition from those who had purchased residences at DLF’s The Belair complex in Gurgaon.

The new complaint, filed by 2 London-based NRIs, alleges that due to a delay in payment of instalments, DLF cancelled their allotments in The Belaire and forfeited the booking amount Rs. 20 lakh each.

One of the CCI official said, “The two  NRIs say DLF had misused its dominant position by cancelling allotments arbitrarily. There is a competition angle in this case.
Commission is soon to take up ten more similar cases pending against DLF"
CCI could also initiate a probe against other real estate developers to unearth similar anti-competitive practices. Since passing the DLF verdict, the Commission has received up to 40 consumer complaints against real estate companies across the country.
CCI:  The violations and abuse of consumer rights  are:
1.  Builders issue advertisements for launching projects without the land being actually purchased, registered in their names and possession taken and without taking prior approval of competent authorities.
 2. Builders do not specify the date of delivery and consequential remedies available to the consumer in case of delay.
3. Builders do not specify the total area of the plot / flat /house, indicating clearly the carpet area and utility area. They do not inform buyers of built-in hidden costs other than the initial set price.
4. Builders do not  inform buyers about the progress of works and status of account of each allottee in a transparent manner.
5. They do not  post all the relevant information on the Internet and make them available in the public domain.
6 . There is no transparent and participatory mechanism put in place to deal with price escalations, if any.
7.  There is no fair, participatory and transparent mechanism to tackle any substantive and major changes in the project mid-way, before taking approval of the authorities for the revised scheme and commencing construction thereon.

Share: