DLF caught imposing unfair conditions on buyers

Realty major DLF Ltd has been violating norms and imposing unfair conditions on home buyers in Gurgaon, a probe wing of the Competition Commission of India (CCI) has said and sought action against the company.

In a report to the CCI, Director General (Investigations) has sought initiation of action against DLF under various sections of the Competition Act, 2002.

The report was also critical of the non-cooperation by authorities like Secretary, Haryana Urban Development Authority and Director, Town Planning Board. It suggested to the Commission to initiate proceedings against the bodies and also take up the matter with the Haryana Government.

"Looking at the acts and the Company... They appear to be violative of the provisions of section 4(2)(a) of the Act. The conditions imposed upon the applicants and alottees are anti-consumer and anti-competitive," the DG report said.

A company violates Section 4(2)(a) of the Competition Act when it directly or indirectly, imposes unfair or discriminatory condition, or price in purchase or sale of goods or service.

When contacted, a DLF spokesperson said, "as the matter is subjudice, we would not like to comment on the issue except that the CCI has asked us to give our comments/objections to this report."

The DG has also noted that there could be violations of other laws as well by DLF as it had not taken necessary approvals before beginning some residential projects.

"...There appears to have been violations on account of permissible construction. Apart from actions under the Competition Act, the Commission may also request the Government of Haryana to take action, as deemed fit on account of possible violations," it said.

In May, on the basis of complaints by some people who booked flats in DLF projects, the CCI had referred the matter for a probe by the Director General (Investigations).

According to one such complaint, DLF had promised to complete its residential project in Gurgaon called Belaire in 2009, but buyers are yet to get possession.

Another individual has alleged that for its Height project, DLF had initially announced it as an 18-floor apartment, but later on added 10 more storeys without informing buyers.