In
a huge win for customers, the Supreme Court (SC) on recently directed real
estate major DLF ltd to submit Rs. 630 crore within 3 months. The company will
be submitting undertaking of interest of 9% on Rs. 630 crore fine.
Most
realty analyst were expecting this decision by the apex court. Quantum wise,
the amount of Rs. 630 crore is about 7.5% of DLF's FY14 revenue of Rs. 8,298
crore.
On
July 11, 2014 DLF Ltd moved the apex court against the COMPAT order announced
in May that upheld competition regulator Competition Commission of India's
(CCI) ruling, which imposed Rs. 630 crore penalty with 9% interest alleging abuse
of dominant position in Gurgaon.
In
2011, CCI had found DLF ltd violating fair trade norms and abusing its dominant
position and imposed a penalty of Rs. 630 crore. This as a complaint was filed
by Belaire Owners Association, Gurgaon - the owners’ association of a DLF
project. The association alleged that DLF imposed highly arbitrary, unfair
& unreasonable conditions on allottees of apartments and these conditions
had serious adverse effects and ramifications on the rights of the buyers.
This
tribunal then dismissed DLF Ltd's plea against the fine imposed by the CCI. The
tribunal had given the company 60 days to pay the penalty or approach the
Supreme Court. DLF Ltd had then said that it would move the Supreme Court on
the matter.
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