Fair trade regulator
Competition Commission of India (CCI) has dismissed allegations of abuse of
dominant market position against real company BPTP over residential flats in
Faridabad.
In its order dated
July 31, 2013 Competition Commission of India
said BPTP Ltd "prima facie, does not appear to be in a dominant
position in the relevant market, there seems to be no question of abuse of its
dominant position within the meaning of the provisions of... (Competition)
Act".
An individual in a
complaint against BPTP, had alleged the company of malpractices & abuse of
its dominant position related to a residential unit he had booked in Faridabad,
which was being developed by the firm.
BPTP was alleged of
unilaterally changing terms of an agreement, illegitimately demanding cost
escalation charges & delaying possession, among others.
According to the
regulator CCI, the documents submitted by the complainant did not substantiate
his case.
"The draft red
herring prospectus gives an overview of the booming real estate industry to
attract investors for Opposite Party's (BPTP) public issue of equity
shares" CCI Told.
"Self claim of
being the 'biggest' or 'No 1' by companies do not amount to establishment of
dominance as required under the Act," CCI noted.
Moreover, the CCI
regulator noted that presence of other builders of repute in Faridabad showed
"prevalence of competition".
As per CCI norms,
"dominant position means position of strength, enjoyed by an enterprise,
in the relevant market, in India which enables it to operate independently of
competitive forces or / affect its
competitors or / consumers or the relevant
market in its favour".
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