The
Competition Appellate Tribunal (COMPAT) has asked the competition watchdog CCI
(Competition Commission of India) to complete proceedings in 3 cases against
real estate company DLF Ltd by September 30, 2012 while refusing to allow the
company to use the contentious clauses in its agreement with buyers.
Park Place, Belaire and Magnolia projects..!
The
COMPAT on recently directed the CCI to submit its suggestions on modification
of the allegedly abusive clauses, besides completing all pending proceedings in
the cases slapped by the buyers of Park Place, Belaire and Magnolia projects in
Gurgaon.
Responding
to a query from the company DLF Ltd, the tribunal clarified that the CCI's
'cease and desist' order would remain in place, implying that DLF Ltd can not
enforce or use the allegedly one sided clauses with its existing / new
customers.
The
tribunal also asked DLF Ltd and the buyers of Magnolia project to submit their version
of the proposed modified clauses to the CCI by 2012 - September end, so that
all 3 cases can be taken up together in the next hearing scheduled for the
beginning of October, 2012
This
was the tribunal's first hearing since Compatchairman Justice Mr. Arijit
Pasayat retired on May 9, 2012. The
hearing took place under Justice Mr.V.S Sirpurkar, the new chairman, who is
also heading the new bench.
Rs. 630 Crore Fine ..!
The
CCI had imposed about Rs. 630 crore fine on DLF Ltd in August 2011 for alleged
abuse of its dominant position and for one sided contracts with buyers of
Belaire and Park Place projects. It had also passed a 'cease and desist' order
over unfair conditions imposed on the buyers of its flats.
The
COMPAT stayed the order in November 2011, after DLF Ltd filed an appeal against
the CCI order.
The
buyers of the 2 projects had filed a complaint with the CCI in May 2010. The
grounds of the complaint were delay in possession & arbitrary changes in the building plan &
structure by the builder. For instance, Belaire was to originally have 5 towers
with 19 floors each. But DLF Ltd later increased the number of floors to 29.
Mr.
Harsh Sehgal, President, Park Place Residents Welfare Association, said, ''That
even though the CCI's 'cease & desist' is in place, DLF Ltd has been
demanding interest on delayed payments from house buyers in these projects at
the rate of 15% to 18% and has been paying only Rs. 10 per square feet for
delays on its part only to those who have not delayed payments. We had earlier
filed a contempt petition with the CCI which was heard on May 14, 2012 and the
order on it is still awaited"
Source:
ET
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